St. Jude Reports Revenue Growth on Atrial Fibrillation Strength

By Chelsey Dulaney 

St. Jude Medical Inc. authorized a $500 million stock buyback program, as the medical device company also reported preliminary revenue for its fourth quarter that met its forecast.

St. Jude expects to report $1.44 billion in net sales for the quarter ended Jan. 3, up 1.2% from a year earlier. In October, St. Jude forecast revenue of $1.39 billion to $1.47 billion, after cutting its full-year revenue outlook on weak international sales. In the latest quarter, international sales fell 3%.

Ahead of a presentation at the J.P. Morgan Healthcare Conference, Chief Executive Daniel Starks said the company is seeing momentum in its atrial fibrillation business. Sales in the unit grew 12% from a year earlier to $283 million.

Revenue in its cardiac rhythm management unit, meanwhile, fell 3% as sales of cardiac defibrillators and pacemakers slowed. St. Jude has been working to bounce back from safety concerns over faulty leads, or wires, used to connect its defibrillators to patients' hearts.

Cardiovascular sales, which include vascular and structural heart products, fell 1%, while neuromodulation sales grew 8%.

St. Jude also reaffirmed its per-share earnings outlook of $1.02 to $1.04 a share. Analysts polled by Thomson Reuters are projecting $1.02 a share in earnings.

Write to Chelsey Dulaney at [e-mail]

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