St. Jude Medical’s revenue, earnings increase in first quarter

For the first quarter of fiscal year 2016, St. Jude Medical’s net sales increased 8 percent to $1.448 billion and its adjusted earnings increased 9 percent to $0.90 per share from the first quarter of last year.

Sales in atrial fibrillation increased 5 percent to $291 million, driven by the adoption of its FlexAbility and TactiCath ablation catheters. In the heart failure division, sales increased 49 percent to $374 million, led by increased adoption of the Heartmate II left ventricular assist system in the U.S. and the Heartmate 3 left ventricular assist system in Europe.

In October, St. Jude Medical acquired Thoratec for $3.3 billion. Thoratec manufactures the Heartmate II and 3 systems.

Sales in the neuromodulation division increased 8 percent to $116 million, while sales in the cardiovascular division were flat at $301 million.

Sales in the traditional cardiac rhythm management division declined 10 percent. The division includes implantable cardioverter defibrillators and pacemakers.

For the first quarter, net earnings were $95 million, or $0.33 per share, and adjusted net earnings were $259 million, or $0.90 per share.

St. Jude Medical said it expects revenue growth of 1-3 percent in the second quarter and 2-4 percent for the full year compared with the same time periods in 2015. The company also expects consolidated adjusted net earnings of $1.05 to $1.07 per share in the second quarter and $4.01 to $4.11 per share for the full year.