St Jude Medical Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component St Jude Medical (NYSE:STJ) will unveil its latest earnings tomorrow, Wednesday, January 23, 2013. St. Jude Medical develops, manufactures and distributes cardiovascular medical devices.

St Jude Medical Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 90 cents per share, a rise of 4.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 87 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. For the year, analysts are projecting profit of $3.44 per share, a rise of 4.9% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of 83 cents per share against a mean estimate of profit of 81 cents per share.

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A Look Back: In the third quarter, profit fell 22.3% to $176 million (56 cents a share) from $226.5 million (69 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 4.1% to $1.33 billion from $1.38 billion.

Here’s how St Jude Medical traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

STJ

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.26 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.59 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 51.8% to $1.52 billion while assets decreased 4.2% to $3.44 billion.

Stock Price Performance: Between November 16, 2012 and January 16, 2013, the stock price had risen $3.52 (10%), from $35.03 to $38.55. The stock price saw one of its best stretches over the last year between December 3, 2012 and December 12, 2012, when shares rose for eight straight days, increasing 5.6% (+$1.90) over that span. It saw one of its worst periods between July 2, 2012 and July 12, 2012 when shares fell for eight straight days, dropping 4.3% (-$1.71) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 2.5% in the second quarter and dropped again in the third quarter.

Wall St. Revenue Expectations: On average, analysts predict $1.37 billion in revenue this quarter, a decline of 2.8% from the year-ago quarter. Analysts are forecasting total revenue of $5.5 billion for the year, a decline of 2% from last year’s revenue of $5.61 billion.

Analyst Ratings: There are mostly holds on the stock with 14 of 25 analysts surveyed giving that rating.

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