ST. PAUL, Minnesota — The first-quarter performance of St. Jude Medical eclipsed the negative effects of the strong dollar and shares of the medical device maker hit an all-time high Wednesday.
Revenue slid 1 percent during the three-month period, but if the effect of currency is stripped out, revenue would have grown 5 percent.
The St. Paul, Minnesota, company trimmed its annual outlook citing a currency impact of between $385 million and $410 million. That's greater than its previous projection of between $325 million and $350 million.
Yet investors remained focused on the potential for new products and the company's success in penetrating markets.
Net income grew 5 percent to $262 million, or 91 cents per share. Excluding one-time charges St. Jude said it earned 93 cents per share, which topped analyst expectations by 2 cents, according to poll by Zacks Investment Research.
Revenue was $1.35 billion, which was shy of the $1.42 billion that Wall Street was expecting.
The strong dollar has weighed on every U.S. company that does business overseas, making their products more expensive and less competitive.
St. Jude now expects an adjusted per-share profit of $3.92 to $3.97 per share in 2015 and revenue of between $5.44 billion and $5.52 billion. Its previous forecast called for net income of $3.95 to $4 per share and $5.44 billion to $5.55 billion in revenue.
Analysts have been projecting a profit of $3.96 per share and $5.51 billion in revenue for the year, according to FactSet.
Needham & Co. analyst Mike Matson said the company is making progress with new products and said its sales of heart rhythm devices and atrial fibrillation products were better than expected.
Matson said the company's new sales guidance is better than expected, excluding currency issues.
Shares of St. Jude Medical Inc. hit a new high of $73.74 Wednesday.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on STJ at http://www.zacks.com/ap/STJ
Keywords: St. Jude, Earnings Report