St. Jude Medical (NYSE:STJ) Exceeds Expectations in Most Categories

The pre-announcement by St. Jude Medical (NYSE:STJ) showed it has performed strongly in the quarter, exceeding expectations in all categories with the exception of pacemakers.

Barclays said, "Before the market opened on January 12, 2011, St. Jude Medical pre-announced 4Q10 results, expecting top-line results above guidance and consensus, with EPS near the top end of its previously issued range of $0.72-$0.74. The results were broadly strong on weak comps (we note that one less selling week negatively impacted 4Q09 results by -5% and we estimate a similar effect on the positive side in 4Q10). Although we had anticipated a stronger 4Q10 based on y/y comparisons, top-line results still outpaced our estimates in every category but pacemakers. Key ICD sales increased 18% ex-fx, including 15% in the US and an estimated 22% OUS (an 800 bps sequential increase). While we were encouraged by STJ's strong results in a difficult environment, valuation continues to keep us on the sidelines."

Barclays reiterates an "Equalweight" rating on St. Jude Medical, which closed Thursday at $41.60, dropping $0.13, or 0.31 percent. Barclays has a price target on St. Jude of $45.