UPDATE 2-St. Jude profit beats Street on ICD share gains

* Q2 adj EPS 79 cts vs Street view 73 cts

* Revenue up 11 pct to $1.31 bln, above Street view

* Says gained $15 mln in ICD sales from Boston Sci halt

* Raises full-year forecast
(Adds CFO interview, detail, analyst comment, byline; updates
stock price; previous NEW YORK)

By Debra Sherman

CHICAGO, July 22 (BestGrowthStock) – Medical device maker St. Jude
Medical Inc (STJ.N: ) reported better-than-expected quarterly
results on Thursday, helped by rival Boston Scientific Corp’s
one-month halt in shipments of implantable heart
defibrillators.

St. Jude said net earnings were $254 million, or 77 cents
per share, in the second quarter, compared with $219.4 million,
or 63 cents per share, a year before.

On an adjusted basis, earnings per share were 79 cents.
Analysts on average had expected 73 cents, according to Thomson
Reuters I/B/E/S.

St. June shares rose nearly 3 percent to $35.63 in
afternoon New York Stock Exchange trade.

Net sales rose 11 percent to $1.31 billion, above the
average analyst estimate of $1.29 billion.

St. Jude said its sales of implantable defibrillators, also
known as ICDs, rose 18 percent in the quarter to $471 million.
It estimated that $15 million of those sales stemmed from the
Boston Scientific (BSX.N: ) suspension as the company sought
clearance from U.S. health regulators for manufacturing
changes.

In a telephone interview, St. June Chief Financial Officer
John Heinmiller said he believes the company gained market
share in ICDs.

“We grew well beyond market growth … we’re definitely
taking share from Boston (Scientific), and we’ll see about
Medtronic (MDT.N: ) when they report next month,” Heinmiller
said.

He estimated St. Jude ended the quarter with a 29 percent
share of new ICD implants, its highest level ever. St. Jude’s
share of replacement ICDs was estimated at 19 percent at the
end of the quarter.

The company, which also manufactures heart valves and
spinal cord stimulators, said it expects adjusted third-quarter
earnings per share of 67 cents to 69 cents, and it raised its
full-year profit view to $2.86 to $2.91 per share.

Analysts have been expecting earnings per share of 67 cents
for the third quarter and $2.84 for the full year.

Stock Market Research

(Reporting by Michele Gershberg, editing by Gerald E.
McCormick and John Wallace)

UPDATE 2-St. Jude profit beats Street on ICD share gains