On Wednesday medical equipment supplier and manufacturer St.
Jude Medical, Inc. (
) reported a 22% decrease in profits for the third quarter.
The St. Paul, Minnesota based company reported a profit of $176
million, or 56 cents per share, down from $227 million, or 69 cents
per share, a year earlier.
In July St. Jude projected earnings per share to be 80 cents to
82 cents, slightly below analysts expectations. For the fourth
quarter STJ forecasts earnings per share to be 86 cents to 88
cents, below the estimated 89 cents per share by analysts polled by
Revenue decreased 4% to $1.33 billion. Analysts polled by
Reuters estimated revenue to be $1.34 billion.
STJ has been hurt as the market for heart-rhythm devices has
been soft due to factors like high unemployment, government
regulations, and economic turmoil domestically and abroad.
St. Jude Medical shares were down $2.44, or -5.64%, in morning
trading on Wednesday.
The Bottom Line
Shares of St. Jude Medical (
) have a 2.14% dividend yield, based on last night's closing stock
price of $42.94. The stock has technical support in the $38 price
area. If the shares can firm up, we see overhead resistance around
the $45-$48 price levels.
St. Jude Medical, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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, as well as a detailed explanation of
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