Shares of major medical devices manufacturer
St. Jude Medical Inc.
) reached new 52-week high of $61.93 in mid-day trading last
Friday. Shares of the company closed at $61.89 on the same day,
representing a solid year-to-date return of 73.2%.
STJ has a market cap of $18.1 billion. Average volume of shares
traded over the last three months stood at approximately
Shares of St. Jude Medical started escalating following its
strong third quarter results on Oct 16 and higher earnings
guidance. Adjusted earnings per share in the quarter were 90
cents and beat the Zacks Consensus Estimate by a penny. It also
surpassed the year-ago earnings of 83 cents by 8.4%. Adjusted
earnings were at the higher end of the company's third-quarter
guidance of 88-90 cents a share.
Revenues inched up 1% (3% in constant currency) year over year to
$1,338 million in the third quarter and exceeded the Zacks
Consensus Estimate of $1,321 million. Revenues in the U.S. (48.3%
of total revenues) and in the international markets increased
1.1% and 0.7% to $646 million and $692 million, respectively in
the reported quarter.
STJ upgraded its adjusted earnings expectations for 2013 to the
band of $3.72-$3.74 from the earlier range of $3.70-$3.73. The
current Zacks Consensus Estimate for 2013 earnings is pegged at
$3.73 per share, which lies within the guided range.
Recently, St. Jude's board of directors authorized a share
repurchase worth up to $700 million of its outstanding common
stock. Since 2010, STJ has repurchased shares worth $3.0 billion.
As of Dec 6, 2013, St. Jude had roughly 292 million issued and
Currently, St. Jude carries a Zacks Rank #3 (Hold). Despite a
difficult Med-tech space, we are optimistic about St. Jude's
strong ability to drive bottom line growth on the back of
cost-saving measures and restructuring efforts.
Some better-ranked stocks in the medical products industry
Hill-Rom Holdings, Inc.
Boston Scientific Corporation
). Both Hill-Rom and NuVasive carry a Zacks Rank #1 (Strong Buy),
while Boston Scientific carries a Zacks Rank #2 (Buy).
BOSTON SCIENTIF (BSX): Free Stock Analysis
HILL-ROM HLDGS (HRC): Free Stock Analysis
NUVASIVE INC (NUVA): Free Stock Analysis
ST JUDE MEDICAL (STJ): Free Stock Analysis
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