St. Jude: Analysts Raise Estimates, Guidance Is Up

St. Jude Medical Inc (STJ) has a history of positive earnings surprises, upward estimate revisions and non cyclical-demand. The company's second-quarter net income was up 20.65% from the same quarter last year, and its stock price has responded, recently advancing back to the 52-week high.

Company Description

St. Jude Medical, Inc. develops and produces medical devices used to diagnose and treat a variety of cardiac and neurological conditions. The company was founded in 1976, carries a market cap of $16.2 billion and is headquartered in St Paul, Minnesota.

Another Great Quarter

St. Jude Medical reported second-quarter results on July 16th that propelled its stock back to the 52-week high. Sales jumped 20% to $1.136 billion, up from $947 million in the same quarter last year. This produced earnings of 60 cents per share, 9% ahead of analyst expectations of 55 cents per share.

The bulk of the company's sales come from its Cardiac Rhythm Management segment, which recorded $714 million in revenue, a 20% increase from last year.

Company Raises Guidance

After the solid quarter and strong performance in all of its business segments, St Jude went ahead and increased its earnings guidance for 2008, saying it now expects to earn between $2.28 and $2.33 per share, up from the previous range $2.15 to $2.20 per share.

Analyst Estimates Are Up

The analyst community agrees, with all 14 covering analysts boosting their current year estimates within just the last 7 days. The full-year consensus estimate now stands at $2.31 per share.

A History of Surprising

This company has a history of surprising and beating analyst estimates, having done so over the last four quarters by an average of 4 cents, or 7%.

Favorable Industry Comparisons

St. Jude looks attractive when compared to its industry competition. Its ROE of 24.8% is well above the industry average of 15.6%. Also, while its peers are leveraged with an average debt-to-equity multiple of 10.4x, St. Jude has a much more conservative debt multiple of just .06x.

Comments

[Buzz Lightyear]

STJ is a great buy now around 46.... looking for 49 in short order!

2008 Jul 29 12:16 AM