WASHINGTON (dpa-AFX) - Medical equipment maker St. Jude Medical Inc. (STJ) Wednesday reported a sharp increase in profit for the second quarter, supported by a modest growth in revenues. Both earnings and revenues topped Wall Street expectations. Further, the company lifted its full year outlook.
Net earnings attributable to the company increased to $270 million or $0.93 per share from $115 million or $0.40 per share in the second quarter of 2013.
During the quarter, the firm recognized $0.08 per share in charges, primarily related to actions associated with restructuring activities.
Adjusted earnings per share were $1.02 while it totaled $0.96 last year. On average, 24 analysts polled by Thomson Reuters expected earnings of $1.00 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales improved to $1.448 billion from $1.403 billion in the prior year. Analysts expected sales of $1.44 billion.
The growth was 3 percent on a reported and constant-currency basis. Favorable foreign currency translation increased sales by around $4 million.
St. Jude Medical Chairman, President and Chief Executive Officer Daniel Starks said, 'The progress we made during the second quarter positions us to accelerate sales growth while continuing to deliver EPS leverage. Our growth is based on differentiated medical technology that improves patient outcomes and reduces the cost of health care.'
The Cardiac Rhythm Management or CRM sales, which include implantable cardioverter defibrillator and pacemaker products, rose 2 percent to $733 million.
In Atrial Fibrillation or AF, sales advanced 8 percent from last year to $257 million.
Total cardiovascular sales rose 3 percent to $351 million. The business primarily includes vascular and structural heart products.
Looking ahead, the company expects its consolidated adjusted net earnings for the third quarter of 2014 to be in the range of $0.95 to $0.97 per share and net earnings per share to be in the range of $0.82 to $0.84.
For the third quarter, St. Jude Medical expects revenue to be in the range of $1.315 billion to $1.395 billion.
Analysts look for quarterly earnings of $0.96 per share on revenues of $1.40 billion.
Full year consolidated adjusted net earnings are now projected in the range of $3.96 to $4.01 and net earnings per share are seen to be between $3.57 and $3.62. Total revenue for the year is estimated to be in the range of $5.640 billion to $5.760 billion.
The company said in April that it expected adjusted net earnings in a range of $3.95 to $4.00 per share, on projected revenues between $5.61 billion and $5.76 billion for the full-year 2014.
Wall Street estimates full year earnings of $3.99 per share on revenues of $5.70 billion.
STJ closed down 1.9 percent on Tuesday at $68.28.
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