Goldman Sachs Maintain Neutral on St. Jude Medical (STJ)
Wednesday, January 25, 2022 11:36 AM

Goldman Sachs has maintained Neutral rating on St. Jude Medical (STJ) shares after the company announced its fourth quarter results. The brokerage also sees modest near-term momentum in STJ.

Earlier in the day, St. Jude announced fourth quarter EPS of 86 cents, two cents above Goldman Sachs estimation and Street consensus. Revenues of $1.405 billion came in above Goldman Sachs’ prediction of $1.386 billion and Street consensus of $1.401 million. Weak gross margins offset revenues increase and lower R&D and selling, general and administrative costs.

The company provided first quarter EPS projection of 82 – 84 cents versus Goldman Sachs’ estimation of 82 cents and Street consensus of 85 cents. For the year 2012, Stryker sees EPS of $3.43-$3.48 compared to Goldman Sachs’ estimation of $3.40 and street consensus of $3.52. Revenue is projected in the range of $5.660 - $5.835 billion versus Goldman Sachs’ estimation of $5.655 billion and consensus $5.8 billion.

The brokerage believes that the company’s outlook for 2012 has taken into account share gains across most segments and Goldman Sachs estimate worldwide end-user markets to grow about 3.2 percent CC versus guidance of plus 4 – 7 percent CC.

Analyst Donald Roman believes that acceleration of pricing depends on CRM markets stabilization or recovery and clinical success in new growth drivers outside CRM. Stryker witnessed two clinical failures last year and new products could be a source of upside.