Earnings Preview: St. Jude Medical

St. Jude Medical (STJ) is scheduled to report earnings Wednesday, July 16 before market open, with a conference call scheduled for 8:00 am ET.

Guidance

Analysts are expecting a profit of 55c on revenue of $1.06B. The consensus range for EPS is 53c to 56c with a revenue range of $1.04B to $1.07B, according to First Call.

Positive catalysts include a global demand for new product introductions in the ICD market combined with a weaker dollar. Negative catalysts to earnings are slowing ICD demand and negative changes in Medicare reimbursements.

Analyst Views

On May 2, Wachovia predicted that the stock will come under pressure over the next two quarters as expectations fall for international ICD growth. Wachovia forecasts that the international ICD market's operational growth will only be in the mid to low single digits. Wachovia downgraded the shares to Market Perform from Outperform.

On June 23, Leerink Swann initiated the stock with an Outperform rating.