St. Jude Medical Earnings: The Healing Touch

Rising costs did not help S&P 500 (NYSE:SPY) component St. Jude Medical, Inc. (NYSE:STJ) in the first quarter as profit dropped from a year earlier. St. Jude Medical Inc. develops, manufactures and distributes cardiovascular medical devices.

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St. Jude Medical Earnings Cheat Sheet for the First Quarter

Results: Net income for St. Jude Medical, Inc. fell to $233.4 million (71 cents/share) vs. $238.6 million (73 cents/share) a year earlier. A decline of 2.2% from the year earlier quarter.

Revenue: Rose 9% to $1.38 billion YoY.

Actual vs. Wall St. Expectations: STJ fell short of the mean analyst estimate of 78 cents/share. Estimates ranged from 77 cents per share to 80 cents per share. However, investors are bidding up shares.

Quoting Management: St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “During the first quarter, we continued to make good progress in developing the new growth drivers we need to return to double-digit sales growth on a sustainable basis. Our gross margin has strengthened, we have continued to invest in research and development at an elevated rate, and our sales and earnings growth outlook have both improved. We are off to a good start making 2011 another very successful year for St. Jude Medical.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the fourth quarter of the last fiscal year, net income rose 8.9% from the year earlier while the figure increased 24.8% in third quarter of the last fiscal year, 15.8% four quarters ago and 18.5% five quarters earlier.

Over the last five quarters, revenue has increased 10.1% on average year over year. The biggest increase came in the fourth quarter of the last fiscal year, when revenue rose 12.2% from the year earlier quarter.

Competitors to Watch: Boston Scientific Corporation (NYSE:BSX), Johnson & Johnson (NYSE:JNJ), Intuitive Surgical, Inc. (NASDAQ:ISRG), Edwards Lifesciences Corp. (NYSE:EW), and Medtronic, Inc. (NYSE:MDT).

Today’s Performance: Shares of STJ are trading at $52.29, up 2.5% from the previous close.

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