St. Jude Medical Inc. said Friday that its revenue grew 12 percent in the fourth quarter, surpassing Wall Street's expectations as sales of its heart devices improved.
The company said it expects to report about $1.35 billion in revenue for the quarter. St. Jude has forecast a profit of 72 cents to 74 cents for the quarter ended Jan. 1, and said it thinks the final total will be closer to 74 cents. That estimate excludes 12 to 14 cents per share in acquisition costs and other one-time items.
The forecast would beat the profit excluding items of 73 cents per share on $1.29 billion in revenue, expected by analysts polled by FactSet. The company is scheduled to report its results on Jan. 26.
In morning trading, shares of St. Jude Medical picked up 85 cents, or 2.1 percent, to $41.80, earlier rising as high as $42.60. That's not far off the stock's 52-week high of $42.98.
St. Jude said sales of heart rhythm management devices grew 9 percent to about $762 million during the quarter. Sales of implanted heart defibrillators, which deliver electric shocks to treat irregular heartbeats, rose 16 percent to $458 million. Revenue from pacemakers, which treat slow heartbeats, edged up to $304 million from $303 million. The company said the stronger dollar reduced its revenue by about 1 percent.
The company said sales of cardiovascular products grew 20 percent to $287 million. Those sales were boosted by the acquisition of AGA Medical in November, which added $25 million to the company's revenue. Sales of atrial fibrillation products, which treat a condition that makes the upper chambers of the heart contract irregularly, rose 13 percent to $193 million.
Revenue from neuromodulation devices increased 15 percent to $108 million. Neuromodulation implants are designed to treat pain and other conditions by stimulating the nervous system.