On Wednesday, St. Jude Medical increased its forecast for profit for the 2016 full year and released an upbeat view on its quarter, as the business reported that both revenue and earnings that beat expectations.
The medical device company based in St. Paul, Minnesota increased its forecast for adjusted earnings for the full year to between $4.01 and $4.11 per share from its range previously released of between $3.95 and $4.05.
For the current three-month period, St. Jude said it is expecting earnings to be between $1.05 and $.107 per share, which is above analyst projections of $1.02.
The results for the first quarter for the company were helped through a growth in sales of its neuromodulation and fibrillation segments.
However, the business of cardiac rhythm management, which includes pacemakers and implantable cardioverter defibrillators continued to receive pressure, as its sales dropped by 10% to just over $366 million due to weakness in the United States.
For its quarter ending April 2, the company reported $95 million in profit equal to 33 cents per share compared to $262 million equal to 91 cents per share for the same period one year ago.
Excluding certain items, earnings per share reached 90 cents. St. Jude revenue was up over 7.7% to end the quarter at $1.45 billion. The company had predicted its adjusted earnings would be between 87 cents and 89 cents per share, while analysts were expecting revenue of $1.43 billion.
Sales in the cardiac rhythm sector at St. Jude’s dropped by 7% during the just ended quarter when it was adjusted for an impact from currency.
The drop was offset by increases in other segments. Its Atrial fibrillation sales were up 5%, its neuromodulation sales expanded by 8% and is products for heart failure jumped by 49%.
On the basis of constant currency, atrial fibrillation sales were up 9%, while neuromodulation sales grew by 10% and it products for heart failure were up 2%.
Sales in cardiovascular were flat compared to the same period one year earlier.
In October, the company acquired Thoratec Corp a maker of heart devices for more than $3.4 billion to increase its presence in the heart failure therapies market.