(By Balaseshan) St. Jude Medical Inc. (NYSE:STJ) reported a better than expected quarterly earnings due to lower costs and expenses. However, the medical device maker guided third quarter below Street's view and cut its full year forecast below consensus.
Net earnings rose to $244 million or $0.78 per share for the second quarter from $241 million or $0.72 per share in the year-ago quarter.
Adjusted earnings per share (EPS) increased 3.5 percent to 88 cents, topping consensus estimate of 87 cents.
Net sales declined 2 percent to $1.41 billion, versus analysts' expectations of $1.43 billion. Revenue for the second quarter rose 1 percent after adjusting for the impact of foreign currency, which lowered sales by about $47 million. Total U.S. sales fell 2.1 percent.
Cardiac Rhythm Management (CRM) sales dropped 6 percent with U.S. sales down 7 percent as sales of ICD and pacemaker products fell.
Total cost of sales declined to $383 million from $395 million. Selling, general & administrative expense fell to $494 million from $514 million, while research & development expense decreased to $173 million from $176 million.
Looking ahead for the third quarter, STJ sees adjusted EPS between 80 cents and 82 cents, trailing expectations of 83 cents.
For full year 2012, the company lowered its adjusted EPS guidance to range of $3.40 to $3.45 from prior forecast of $3.44 to $3.49, while analysts expect $3.46 per share.
The stock, which has been trading between $32.13 and $49.79 over the past year, closed Tuesday's regular session at $39.24.