Weak International Sales Prompt St. Jude To Lower Q4 Expectations
St. Jude Medical Inc. on Wednesday reported revenue and earnings growth for its third quarter ending Sept. 27, but international sales held back further gains.
With international sales expected to remain weak, the company adjusted its Q4 revenue outlook. During the fourth quarter, the company expects revenue to be in the range of $1.39 billion to $1.47 billion. Analysts at Thomson Reuters expected revenue of $1.49 billion. Stocks fell on the news.
The Little Canada-based medical device manufacturer said net sales rose 3 percent to $1.372 billion compared to $1.338 billion during the same quarter last year. Its profits, adjusted for one-time charges, were $281 million, or 97 cents per share. That’s up from 90 cents from last year.
Total U.S. sales rose 3 percent to $666 million. International growth failed to meet expectations, growing by only 2 percent.
“During the third quarter, sales growth accelerated in the U.S. due to the strength of our innovation and new products,” St. Jude CEO Daniel Starks said in a statement. “However, sales growth in our international markets was slower than expected and we have adjusted our outlook for the fourth quarter accordingly.”
St. Jude recently acquired Massachusetts-based NeuroTherm for $200 million. NeuroTherm manufactures devices that treat chronic spinal pain.
By Wednesday's market close, St. Jude's stock was down nearly 5 percent to $57.30 per share.