St. Jude's fourth-quarter adjusted earnings per share rose 7.6% to
$0.99 and beat the Zacks Consensus Estimate by $0.03. Revenues
increased 3.6% and also exceeded the mark. New products from fresh
acquisitions should further propel the top line in the near term.
Moreover, the company's clear-cut guidance is encouraging. However,
St. Jude faces increased competitive and pricing pressures, as well
as currency fluctuations and other macroeconomic headwinds.
Therefore, we reiterate our Neutral recommendation on St. Jude and
set a price target of $64.00.
Headquartered in St. Paul, Minn., St. Jude Medical, Inc. (STJ)
was founded in 1976. The company designs, manufactures and
distributes medical devices to treat cardiovascular and
neurological conditions. The products are sold through a network of
direct sales representatives and independent distributors
St. Jude operates through four product divisions: Cardiac Rhythm
Management (CRM), Cardiovascular (CV), Atrial Fibrillation (AF) and
Neuromodulation (Neuro). However, effective Jan 1, 2013, St. Jude
has consolidated its four operating segments into two new segments.
As per the realignment plan, the CRM and Neuro divisions have been
combined to form the Implantable Electronic Systems Division
(IESD), whereas the AF and the CV segments have been clubbed to
form the Cardiovascular and Ablation Technologies Division
IESD (58.3% of total revenues in 2013): The CRM division (86.7%
of IESD revenues in 2013) manufactures implantable cardioverter
defibrillator systems (ICDs) for patients with tachycardia or
exceptionally fast heartbeats, cardiac resynchronization
therapy-defibrillator (CRT-D) devices to treat congestive heart
failure (CHF) and suppress atrial fibrillation, electrophysiology
(EP) catheter products for diagnosing abnormal heart rhythms in
cardiac patients, and pacemaker systems (pacemakers) to treat
bradycardia or slow heart beats. The Neuromodulation division
(13.3%) offers various neurostimulation devices.
CATD (41.7% of total revenues in 2013): CV (58.2% of CATD
revenues in 2013) deals with vascular closure devices such as
Angio-Seal, angiography catheters, guidewires, and hemostasis
introducers, mechanical and tissue heart valve replacement, and
repair products. AF division (41.8%) offers products that assist
physicians in diagnosing and treating various irregular heart
rhythms, including introducers and catheters, advanced cardiac
mapping and navigation systems and ablation systems.
St. Jude Medical, Inc. (STJ): Read the Full
ST JUDE MEDICAL (STJ): Free Stock Analysis
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