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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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 has no position in any of the stocks mentioned. 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.