UPDATE 4-St. Jude Medical earnings up, shares rally

(Adds CFO interview, more analyst comment, byline; updates stock)

By Debra Sherman

CHICAGO, July 16 (Reuters) - St. Jude Medical Inc (STJ.N: Quote, Profile, Research) said on Wednesday that quarterly earnings rose, beating Wall Street estimates, as sales of implantable heart defibrillators jumped 24 percent over a year ago, sending shares to a nine-month high.

Shares of Medtronic Inc (MDT.N: Quote, Profile, Research) and Boston Scientific Corp (BSX.N: Quote, Profile, Research), the other manufacturers of implantable cardioverter defibrillators (ICDs), also rose, as investors bet on a sustained rebound in the important ICD market, which had been depressed over the past couple of years in the wake of product recalls.

St. Jude shares led the rally, gaining as much as 8 percent in early trading after the company posted gains in all of its major businesses and boosted its full-year profit forecast.

The St. Paul, Minnesota-based cardiovascular device maker said second-quarter net earnings were $208.5 million, or 58 cents per share, compared with $134.8 million, or 39 cents per share, in the year-ago quarter.

Net profit in the year-ago quarter was reduced by special charges for settling patent litigation.

Including a federal research and development tax benefit the company expects to receive, earnings were 60 cents per share, 5 cents above the average estimate taken by Reuters Estimates.

Second-quarter sales rose 20 percent to $1.14 billion, helped by favorable foreign exchange rates.