St. Jude Medical (STJ) warned that third-quarter earnings will be below previous guidance. The company anticipates reporting profits of 57 to 58 cents per share, compared to prior guidance of 61 to 63 cents and the Zacks Consensus Estimate of 62 cents. St. Jude's share reacted negatively to the news with the price declining approximately 14% in the last two trading sessions to close at $33.01 yesterday.

Net sales are expected to be approximately $1.159 billion, an increase of 7% year over year. Excluding an unfavorable foreign currency translation (FX), net sales are expected to increase roughly 10% year over year. Excluding Neuromodulation, preliminary revenues for all business segments were below or at the low end of the guidance. This can be primarily attributed to the current economic turbulence that has resulted in hospitals deferring their purchasing decisions.?

Preliminary Cardiac Rhythm Management sales were roughly $690 million, an increase of 2% year over year. Within this segment, implantable cardioverter defibrillator (ICD) sales were $389 million, an increase of 2% year over year. Pacemaker sales were $301 million, an increase of 1% year over year.

Atrial Fibrillation (AF) sales were $155 million, an increase of 15% year over year. Neuromodulation sales were $84 million, an increase of 31% year over year. Cardiovascular sales increased 11% year over year to $230 million.

St. Jude Medical will come out with exact numbers when it reports its third quarter results on October 21st.

St. Jude is a leading medical devices manufacturer that designs, manufactures and distributes medical devices to treat cardiovascular and neurological conditions.

Presently, St. Jude Medical holds the #2 market position for ICDs and pacemakers behind Medtronic Inc. (MDT) but ahead of Boston Scientific Corporation (BDX). This segment is the company's largest in terms of revenues. St. Jude also holds the #2 market position behind Medtronic in neuromodulation.