The company reported revenue of $682 million in that business, whereas Wall Street analysts had expected revenue of $666 million, according to an analyst note from Glenn Novarro, senior medical device analyst at RBC Capital Markets. Novarro described the quarterly performance of this business as "standout" adding that it bodes well for CRM divisions at Medtronic and Boston Scientific. The Cardiac Rhythm Management business at St. Jude Medical is comprised of ICDs and pacemakers.
"One of the most important takeaways from our third quarter is that our global high-voltage or ICD revenue increased 2% on a constant currency basis for the first time in two years," said Daniel Starks, CEO of St. Jude Medical to analysts on the call. We estimate that we captured approximately 1 full [percentage] point of share in the United States ICD market on a year-over-year basis during the quarter."
Constant currency reporting allows companies to reflect financial performance by taking out currency fluctuations that sometimes can negatively affect results.
While the CRM business beat analyst expectations, it was still 1% lower than what it garnered in the third quarter of 2012.
Overall, St. Jude Medical had revenue of $1.34 billion in the quarter, up 1% from $1.33 billion in the same quarter a year ago. Third-quarter net income was $262 million, or 90 cents a share, up from $176 million, or 56 cents a share, a year earlier.
"This is clearly another encouraging sales quarter -- now its second consecutive sales beat -- as STJ appears to be both regaining ICD market share and continuing to make progress on returning its other businesses to an accelerating growth profile," wrote Danielle Antalffy, an analyst with healthcare investment bank Leerink Swann, in a research note Wednesday.
|Innovations in implantable devices will be a topic of discussion at the MD&M Conference and Exposition in Minneapolis, Oct. 28-30.|