St. Jude Medical
The 10-second takeaway
For the quarter ended March 31 (Q1), St. Jude Medical beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share contracted.
Margins contracted across the board.
St. Jude Medical notched revenue of $1.40 billion. The 22 analysts polled by S&P Capital IQ wanted to see a top line of $1.37 billion on the same basis. GAAP reported sales were 1.4% higher than the prior-year quarter's $1.38 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.86. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.83 per share on the same basis. GAAP EPS of $0.67 for Q1 were 5.6% lower than the prior-year quarter's $0.71 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 74.3%, 30 basis points worse than the prior-year quarter. Operating margin was 21.6%, 470 basis points worse than the prior-year quarter. Net margin was 15.2%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.45 billion. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $5.72 billion. The average EPS estimate is $3.47.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on St. Jude Medical is outperform, with an average price target of $46.86.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of St. Jude Medical. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.