St. Jude Medical Earnings: Below Street Expectations

S&P 500 (NYSE:SPY) component St. Jude Medical Inc. (NYSE:STJ) reported its results for the third quarter. St. Jude Medical develops, manufactures and distributes cardiovascular medical devices.

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St. Jude Medical Inc. Earnings Cheat Sheet

Results: Net income for the medical products fell to $176 million (56 cents per share) vs. $226.5 million (69 cents per share) a year earlier. This is a decline of 22.3% from the year-earlier quarter.

Revenue: Fell 4.1% to $1.33 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: St. Jude Medical Inc. fell short of the mean analyst estimate of 81 cents per share. It fell short of the average revenue estimate of $1.43 billion.

Quoting Management: Commenting on the third quarter, St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “Our existing growth drivers continued to perform well this quarter and we made good progress with our emerging growth drivers that will launch in the coming year. As we move into 2013 we are focused on execution and on ensuring our organization is as efficient and streamlined as possible to achieve our goal of delivering innovative medical devices that improve patient outcomes and reduce the cost of health care.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by one cent, and in the first quarter, it was ahead by 3 cents.

Net income has dropped 12.2% year-over-year on average across the last five quarters. Performance was hurt by a 39.5% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.

Revenue has fallen in the past two quarters. In the second quarter, revenue declined 2.5% to $1.41 billion from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 92 cents a share to 89 cents over the last sixty days. In the past month, the average estimate for the fiscal year has fallen from $3.47 per share to $3.43.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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