Heart-device maker St. Jude Medical Inc. (STJ) lowered its
third-quarter earnings forecast as it warned sales slowdowns in
hospital restocking will result in slower revenue growth than it
had hoped.
Shares were down 1.3% premarket at $37.34. The stock had risen
16% so far this year through Monday.
Although health care has historically resisted recessions, the
hospital industry has faced growing numbers of uninsured patients
and unpaid patient bills as unemployment climbs.
St. Jude said it now predicts earnings of 57 cents or 58 cents a
share, after predicting 61 cents to 63 cents in July. The latest
forecast excludes up to 10 cents in write-downs and severance
charges.
It sees sales increasing 7% to $1.16 billion, though the gain
will be 10% excluding foreign exchange. That's down from a previous
view for 13% growth excluding currency impact.
The company will annnounce full results in mid-October.
In July, St. Jude posted a 14% jump in second-quarter profit,
though foreign exchange ate into sales of its heart-rhythm and
cardiovascular products. Recent revenue from implantable
cardioverter defibrillators has been a concern for investors.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com