St. Jude Medical Earnings: Here’s Why Investors are Bidding Down Shares Now

St. Jude Medical Inc. (NYSE:STJ) delivered a profit and beat Wall Street’s expectations, AND met the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.34%.

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St. Jude Medical Inc. Earnings Cheat Sheet

Results: Net income decreased -4% to $120 million (92 cents per diluted share) in the quarter versus a net gain of $125 million in the year-earlier quarter.

Revenue: Decreased 2.62% to $1.37 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: St. Jude Medical Inc. reported adjusted net income of 92 cents per share. By that measure, the company beat the mean analyst estimate of $0.9. It met the average revenue estimate of $1.37 billion.

Quoting Management: Chairman, President and Chief Executive Officer Daniel J. Starks said, “We are particularly pleased with the strong growth of our atrial fibrillation business, our ability to maintain share in the global ICD market and exceeding prior earnings per share guidance for the quarter. We remain firmly committed to delivering strong EPS growth in 2013 without sacrificing investment in our broad portfolio of pipeline products.”

Key Stats:

Revenue increased 3.32% from $1.33 billion in the previous quarter. Net income decreased 31.82% from $176 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.89 and has not changed. For the current year, the average estimate has moved up from a profit of $3.43 to a profit of $3.46 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)