This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

St. Jude Up on Sales Beat

Updated from 9:30 a.m.

St. Jude Medical's (STJ) shares rose early Thursday after the medical device maker reported solid fourth-quarter earnings and issued guidance for growth in 2007.

Shares gained 94 cents, or 2.4%, to $40.61.

Fourth quarter earnings reached $155 million, or 42 cents a share, including a retroactive benefit of approximately 3 cents a share related to a research and development tax credit for the first nine months of 2006. This compares to earnings of $5 million, or a penny a share in the year-ago period. Analysts were expecting the company to earn 39 cents a share.

Sales were $864 million, up more than 9% from the fourth quarter of 2005 and exceeding analysts' estimates of $852.35 million. St. Jude's cardiac rhythm management segment brought in $535 million in the quarter, up 4% from a year ago. Atrial fibrillation device sales were $91 million, up more than 26%.

"Our fourth quarter results reflect the significant progress we are making within all of our growth platforms," said CEO Daniel Starks in a press release. "Momentum is strong in our new growth platforms, particularly in atrial fibrillation and neuromodulation, and the improvement we are seeing in the overall ICD market supports our optimism in a recovery for that market in 2007."

Sales of implantable cardioverter defibrillators were $289 million, up 3% from a year ago. St. Jude expects first quarter 2007 defibrillator sales of between $275 million to $305 million, with a 3% to 9% increase sales of the devices for the full year.

"Negative trends in the overall ICD market are now behind us," said CEO Starks in the company's earnings conference call Thursday. Trends in the second half of 2006 were positive and "the stars are nicely aligned" for growth.

Pacemaker sales were $118 million, up 5% in the fourth quarter. First quarter pacemaker sales are expected to see a significant upswing and reach between $235 million and $250 million.

Neuromodulation device sales were up 16% to $50 million in the fourth quarter. St. Jude expects sales of those devices to reach $47 million to $52 million in the first quarter of 2007.

For the first quarter of 2007 overall, the company expects to earn 39 cents to 41 cents a share. For the full year, St. Jude Medical sees earnings of between $1.70 and $1.75 a share.

Additionally, in the first half of the year, St. Jude expects to buy back $1 billion in its common stock.

Over the course of the year, the device maker expects to launch approximately 20 new defibrillator and pacemaker products. St. Jude says details on those products will be provided at an investor conference slated for Feb. 9.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs