St. Jude Medical
The 10-second takeaway
For the quarter ended June 29 (Q2), St. Jude Medical beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share grew. GAAP earnings per share shrank significantly.
Margins shrank across the board.
St. Jude Medical reported revenue of $1.40 billion. The 21 analysts polled by S&P Capital IQ wanted to see a top line of $1.36 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.96. The 25 earnings estimates compiled by S&P Capital IQ anticipated $0.94 per share. Non-GAAP EPS of $0.96 for Q2 were 9.1% higher than the prior-year quarter's $0.88 per share. GAAP EPS of $0.40 for Q2 were 49% lower than the prior-year quarter's $0.78 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 72.8%, 120 basis points worse than the prior-year quarter. Operating margin was 25.7%, 100 basis points worse than the prior-year quarter. Net margin was 8.2%, 910 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.32 billion. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $5.41 billion. The average EPS estimate is $3.70.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on St. Jude Medical is hold, with an average price target of $45.77.
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