St. Jude Announces Promising Guidance - Analyst Blog

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St. Jude Medical Inc. ( STJ ) released its preliminary results for the fourth quarter of 2013, where revenues surpassed the Zacks Consensus Estimate as well as the year-ago level. Shares of the company hit a new 52-week high of $68.39 soon after the announcement on Jan 13 and closed at $66.15 yesterday, up 0.2% since the release of the preliminary results.

STJ expects revenues of $1,422 million for the fourth quarter of 2013, up 4% from $1,372 million earned in the fourth quarter of 2012. On a currency neutral basis, revenues grew 6% from the fourth quarter of 2012.

St. Jude's expected revenues for the quarter exceeded the Zacks Consensus Estimate of $1,379 million but falls within its previous guidance of $1,315 to $1,395 million.

Expected Product Division Results

In the Cardiac Rhythm Management (CRM) division, STJ expects revenues of $705 million, up 3% from the year-ago level. Excluding the currency impact, CRM sales are expected to increase by 5%.

Of the total revenue in the CRM division, implantable cardiac defibrillator (ICD) revenues are expected to go up by 5% (both on a reported and constant currency basis) to $442 million in the quarter. Meanwhile, pacemaker sales are expected to move up by 1% (4% on a constant currency basis) to $263 million.

In the Atrial Fibrillation division, revenues are expected to increase by 5% (8% on a constant currency basis) to $252 million. In the cardiovascular division, revenues are expected to go up 4% (7% on a constant currency basis) to $350 million for the fourth quarter of 2013.

Of the total revenue in the cardiovascular division, vascular products revenues are expected to dip 2% to $183 million, but increase 2% on a constant currency basis over the fourth quarter of 2012. Meanwhile, structural heart product revenues are expected to go up 10% (12% on a constant currency basis) to $167 million.

In the Neuromodulation division, revenues are expected to rise 2% to $115 million, both on a reported and constant currency basis.

Earnings

For the fourth quarter of 2013, St. Jude anticipates earnings per share in the range of 97 cents to 99 cents, an increase of 2 cents over both the top and bottom ends of its previously issued guidance range.

The Zacks Consensus Estimate is at the bottom end of its revised guided range. Adjusted earnings per share exclude after-tax charges of 55 cents per share, primarily related to ongoing restructuring actions and certain other corporate charges.

Currently, St. Jude carries a Zacks Rank #3 (Hold). The company is expected to release its complete fourth quarter and full year results on Jan 22.

Some better-ranked stocks in the medical products industry include Cardiovascular Systems Inc. ( CSII ), Mead Johnson Nutrition Company ( MJN ), and Advaxis, Inc. ( ADXS ). Cardiovascular Systems and Mead Johnson Nutrition carry a Zacks Rank #1 (Strong Buy), while Advaxis has a Zacks Rank #2 (Buy).



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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ADXS , CRM , CSII , MJN , STJ

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