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

St. Jude Medical Inc. (NYSE:STJ) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.93%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

St. Jude Medical Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.98% to $0.92 in the quarter versus EPS of $0.86 in the year-earlier quarter.

Revenue: Decreased 4.09% to $1.34 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: St. Jude Medical Inc. reported adjusted EPS income of $0.92 per share. By that measure, the company beat the mean analyst estimate of $0.91. It missed the average revenue estimate of $1.36 billion.

Quoting Management: St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “We are pleased with our track record of delivering strong earnings per share growth while we continue to invest in our diversified product portfolio. We expect sales growth to accelerate as we launch more than 20 new products to the market in 2013.”

Key Stats (on next page)…

Revenue decreased 2.48% from $1.37 billion in the previous quarter. EPS were the same at $0.92 as the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.93 to a profit $0.94. For the current year, the average estimate has moved up from a profit of $3.62 to a profit of $3.70 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]