St. Jude Medical Inc. Earnings Cheat Sheet: Rising Revenue Helps Margins Expand, Profit Rises

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 Earnings Cheat Sheet for the Third Quarter

Results: Net income for St. Jude Medical Inc. rose to $226.5 million (69 cents per share) vs. $208.4 million (63 cents per share) in the same quarter a year earlier. This marks a rise of 8.7% from the year earlier quarter.

Revenue: Rose 11.5% to $1.38 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: STJ reported adjusted net income of 78 cents per share. By that measure, the company beat the mean estimate of 76 cents per share. Analysts were expecting revenue of $1.37 billion.

Quoting Management: St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “We made good progress during the third quarter implementing numerous new growth drivers. We are supporting these new growth drivers with robust comparative effectiveness data. We simultaneously are reducing costs and increasing productivity. St. Jude Medical’s program for delivering superior growth over the long-term is on track.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the second quarter, by 2 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 10.2% to $1.45 billion in the second quarter. The figure rose 9% in the first quarter from the year earlier and climbed 12.2% in the fourth quarter of the last fiscal year from the year-ago quarter.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the second quarter, net income fell 5.2% while the figure dropped in the first quarter.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from 87 cents per share to 86 cents. For the fiscal year, the average estimate has moved down from $3.30 a share to $3.27 over the last ninety days.

Competitors to Watch: Medtronic, Inc. (NYSE:MDT), Boston Scientific Corp. (NYSE:BSX), Edwards Lifesciences Corp (NYSE:EW), Hansen Medical, Inc. (NASDAQ:HNSN), Greatbatch Inc. (NYSE:GB), Cardima, Inc. (CADMQ), AtriCure Inc. (NASDAQ:ATRC), Volcano Corporation (NASDAQ:VOLC), C.R. Bard, Inc. (NYSE:BCR), and Stereotaxis, Inc. (NASDAQ:STXS).

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(Source: Xignite Financials)