St. Jude Medical Beats Up on Analysts Yet Again

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St. Jude Medical (NYS: STJ) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), St. Jude Medical met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded, and earnings per share dropped significantly.

Gross margins improved, operating margins expanded, net margins shrank.

Revenue details
St. Jude Medical booked revenue of $1.4 billion. The 25 analysts polled by S&P Capital IQ predicted sales of $1.4 billion. Sales were 4.2% higher than the prior-year quarter's $1.4 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.86. The 28 earnings estimates compiled by S&P Capital IQ averaged $0.84 per share on the same basis. GAAP EPS of $0.51 for Q4 were 18% lower than the prior-year quarter's $0.62 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 73.5%, 80 basis points better than the prior-year quarter. Operating margin was 25.6%, 290 basis points better than the prior-year quarter. Net margin was 11.6%, 370 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.4 billion. On the bottom line, the average EPS estimate is $0.85.

Next year's average estimate for revenue is $5.8 billion. The average EPS estimate is $3.52.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on St. Jude Medical is outperform, with an average price target of $44.62.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of St. Jude Medical. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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