St. Jude Medical Inc. (NYSE:STJ) reported better than expected sales results for its fourth quarter.
The St. Paul, Minn.-based medical device maker reported revenues from the period ending Jan. 1 of $1.35 billion, including $25 million contribution from the November acquisition of AGA Medical Holdings Inc. The results represented an increase of approximately 12 percent over the same period in 2009 and outstripped the analyst consensus projection of $1.29 billion and the company’s own forecast of $1.30 billion.
"Solid double-digit sales growth, despite ongoing industry headwinds, in our opinion, seems to highlight STJ’s continued strong execution. Based on the preliminary results, STJ’s sales increased at a double-digit pace ex-currency in virtually every major division, with particularly strong results OUS. Overall [implantable cardiac defibrillators] results looked solid, while U.S. [atrial fibrillation] growth rebounded into the double digits, following four quarters of relatively soft performance." Leerink Swann analyst Rick Wise wrote in a note to investors.
Implantable cardiac defibrillators fetched the company approximately $458 million and atrial fibrillation products brought in about $193 million, up 18 percent and 14 percent, respectively, on constant currency basis. Sales of cardiovascular products, including AGA, were $287 million, up 20 percent, according to the company.
St. Jude expects its earnings per share to hit the higher side of its most recent guidance of 72 cents to 74 cents, excluding charges totaling about 12 cents to 14 cents per share, the company said.
Wall Street reacted positively to the results. STJ shares closed at $41.75, up 80 cents or about 1.9 percent.
“During 2010, one key priority was investing to accelerate our long term sales growth. Q4 results demonstrate that we are making good progress delivering on this priority." CEO Daniel Starks said in prepared remarks.
The company plans to release its full year and Q4 earnings results on Jan. 26 at 7:30 a.m.