St. Jude Medical Inc. on Wednesday said its third-quarter earnings fell 9.2 percent amid several charges, and the medical-device company lowered its revenue guidance for the year due to weak international sales.
“Sales growth in our international markets was slower than expected and we have adjusted our outlook accordingly,” Chief Executive Daniel Starks said.
St. Jude reported a third-quarter profit of $238 million, or 82 cents a share, down from $262 million, or 90 cents a share, a year earlier. Excluding changes and other items, earnings rose to 97 cents a share. Sales edged up 2.5 percent to $1.37 billion.
The Little Canada-based company had guided in July for earnings of 95 cents to 97 cents a share on sales of $1.32 billion to $1.4 billion.
Total cardiac-rhythm-management sales and pacemaker sales both rose 1 percent, excluding currency impacts.
The company is working to bounce back from safety concerns over faulty leads, or wires, used to connect its defibrillators to patients’ hearts.
Other expenses came from a restructuring effort announced in January. St. Jude is combining manufacturing and supply-chain operations and integrating two operating divisions into one research-and-development organization. More recently, the company in July agreed to buy NeuroTherm Inc., a privately held maker of pain-management treatments, for about $200 million in cash to broaden its chronic-pain division.
St. Jude narrowed its earnings outlook for the year to a range of $3.97 to $3.99 a share from a previous estimate of $3.96 to $4.01 a share. It lowered its revenue outlook to $5.57 billion to $5.65 billion from a previous forecast of $5.64 billion to $5.76 billion.
Shares were down 3.9 percent at $57.56 in midday trading.
