By Heather Mayer and Brendon Nafziger, DOTmed News reporters

Medical device companies Abbott, Boston Scientific, St. Jude and Baxter all report a generally upbeat third quarter and have beaten Wall Street's gloomier estimates in this earnings round-up.

Abbott Laboratories

Abbott reported strong third quarter earnings and confirmed its double-digit ongoing earnings outlook for 2010, the company announced Wednesday.

The company's worldwide sales increased 11.8 percent to $8.7 billion, driven largely by worldwide pharmaceutical sales, the company said, which increased 21.7 percent. These sales reflected the Solvay acquisition, which closed in February.

Diluted earnings per share were $1.05, showing a 14.1 percent growth at the high end of Abbott's previous guidance range of $1.03 to $1.05.

"Abbott delivered strong performance in the quarter as we confirmed our double-digit growth outlook for the full year," said Miles White, chairman and CEO for Abbott, in prepared remarks.

In addition to the Solvay acquisition, Abbott also acquired Piramal's Healthcare Solutions and eValve. These acquisitions and the company's increasing R&D investment show a "strong foundation to manage through such top-line growth challenges," said Rick Wise of Leerink Swann in a letter to investors.

Even with the company's Similac baby formula recall earlier this year, Abbott's numbers are solid, Wise said.

"Sales of $8.68 billion were light - $215 million below us and $260 million below the Street - but this miss is likely largely driven by the recently announced $100 million top-line hit from the Similac recall," Wise wrote. "And despite weaker sales, [Abbott] still delivered strong EPS growth, with better-than-expected gross margins."

Abbott's ongoing earnings-per-share guidance for full-year 2010 is $4.16 to $4.18.

Abbott's stock jumped to $52.85 per share, up from yesterday's close of $52.42.

Boston Scientific Corporation
Natick, Mass.-based Boston Scientific Corporation posted $1.916 billion in sales earlier this week, reporting GAAP earnings of $0.12 per diluted share, with adjusted earnings per share of $0.19 that exceeded the high end of the company's guidance range for the quarter.

The net sales dropped 5 percent from last year's $2.025 billion.

Leerink Swann's Wise told investors that Boston Scientific's third quarter results are encouraging.

The company highlighted several areas in which there is progress, including launching several new products - planned for the end of next year - accelerating certain R&D programs, and stabilizing and improving gross margins as the company recovers from the ICD recall and hold earlier this year.

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