St. Jude Medical
reported sales and earnings Wednesday that were in line with the disappointing estimates it offered earlier this month.
Just after the quarter ended, St. Jude said its first-quarter results would miss Wall Street's projections because of weaker-than-expected sales of its implanted defibrillators. In recent months, the number of procedures being performed has dropped for all makers of the devices.
St. Jude's sales were $784 million in the first quarter, up 18% from the year-earlier period and matching its preannounced results. In addition to the disappointing defibrillator sales, sales took a $22 million hit from unfavorable foreign currency translations.
Before its warning, analysts surveyed by Thomson First Call were looking for a top line of $827.5 million. After the announcement, analysts lowered their sales expectations to $790.8 million.
St. Jude earned $137 million, or 36 cents a share, in the first quarter, including costs of 3 cents a share for expensing stock options. The company had said it would earn 35 cents to 36 cents a share. Excluding the option costs, St. Jude would have had a profit of 39 cents.
Sales of its implanted defibrillators were $262 million, up 27% from a year ago. Pacemaker sales totaled $221 million, a 2% increase. St. Jude's sales of neuromodulation products reached $42 million in the first quarter, up 31% with help from the acquisition of Advanced Neuromodulation Systems.
Looking ahead, the company said second-quarter earnings should come in at 36 cents to 39 cents a share. For the full year, earnings are expected to be between $1.55 and $1.60 a share, including the impact of stock-compensation expensing.
St. Jude also announced a $700 million share repurchase program, which will replace the company's previous plan to buy back up to $300 million of its stock.
Shares of St. Jude closed at $36.40 Tuesday, up 30 cents.