Investors shrugged off St. Jude Medical (STJ) first-quarter earnings that exceeded Wall Street estimates, sending STJ stock down more than 2% in Wednesday morning trading.
STJ shares fell after the medical device-maker reported a Q1 profit of $249 million, up about 12% year-over-year. Adjusted EPS came in at 96 cents, topping the 94 cents analysts had forecast. Quarterly revenue rose to $1.36 billion, up 1.9% compared to the prior-year period, and in line with expectations, the Wall Street Journal noted.
Sales of STJ pacemakers rose 2%, while implanted defibrillator sales and total cardiac-rhythm management systems sales both increased 3%.
For the current quarter, STJ predicts EPS of between 99 cents and $1.01, which matched analysts’ estimates of $1. Revenue was forecast to come in between $1.38 billion and $1.46 billion. Analysts had estimated current quarter revenue of $1.44 billion. STJ said it expects full-year earnings of between $3.95 and $4 per share, up from previously-issued guidance of between $3.94 and $3.99 per share. The company anticipates annual revenue between $5.61 billion and $5.76 billion.
Despite the positive outlook, investors were apparently expecting higher sales and revenue going forward.
Over the past 12 months, STJ stock has gained about 50%.
