St. Jude Medical says 3Q profits soar over 16 percent

St. Jude Medical Inc. (NYSE:STJ) on Tuesday upgraded its end-of-the-year profit forecast after reporting a third quarter adjusted earnings gain of 16.5 percent.

The medical device maker, based in Little Canada, Minnesota, said it now expects to make $2.98 to $3.00 a share, compared to its earlier estimate of $2.78 to $2.83 a share.

“Our third quarter results reinforce our conviction that our growth program is on track and that St. Jude Medical is well positioned to continue growing long term at a superior rate,” CEO Daniel Starks said. “We now have raised our 2010 EPS guidance range for the third time in three quarters. We have good momentum as we prepare to finish up the year and look to 2011.”

For the third quarter, St. Jude Medical said adjusted earnings totaled $237.6 million, compared to $204 million during the same quarter a year ago.

The company’s more bullish profit estimates comes even as sales growth slowed somewhat from a torrid second quarter.

St. Jude Medical said it generated $1.24 billion in third quarter sales, a 7 percent gain from the same period a year ago. The company recorded 11 percent year-over-year gains in each of the first two quarters of this year.

Total cardiac rhythm management sales, which includes pacemakers and implantable cardioverter defibrillators, rose 7 percent to $738 million. That’s higher than industry growth rates but much lower than the 12 percent year-over-year gain in the second quarter.

In mid-morning trading, St. Jude Medical shares dropped $1.68 to $38.10.