July 17 (Bloomberg) -- St. Jude Medical Inc., the St. Paul, Minnesota-based maker of heart-rhythm devices, surged the most in 20 months after second-quarter revenue fell less than analysts had estimated.
St. Jude climbed 5.2 percent to $51 at 4 p.m. New York time for its biggest advance since November 2011. The stock has increased 41 percent this year.
Second-quarter revenue declined less than 1 percent to $1.4 billion from $1.41 billion a year earlier, St. Jude said today in a statement. The sales topped the $1.36 billion average of 20 analysts’ estimates compiled by Bloomberg. The company forecast full-year profit of $3.70 to $3.73 a share, compared with a previous projection of at least $3.68.
“Revenues outpaced expectations in every category,” Brooks West, an analyst with Piper Jaffray, wrote in a research note today, citing cardiac rhythm management as particularly strong. “St. Jude also continues to speak to acquisition criteria which we believe will be used to supplement its growth strategy.”
Earnings, excluding restructuring costs and other one-time items, were $275 million, or 96 cents a share. Net income fell 53 percent to $115 million, or 40 cents, from $244 million, or 78 cents.
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