St. Jude Medical (STJ) Stock: Gaining On Strong Earnings


St. Jude Medical, Inc. (NYSE: STJ)

St. Jude Medical is having an incredible day in the market today, and for a very good reason. The company recently reported its earnings for the first quarter of 2016, blowing away expectations. As a result, investor excitement is driving the value of the stock upward! Today, we’ll talk about what we saw from earnings, how the market reacted to the news, and what we can expect to see from STJ moving forward. So, let’s get right to it…

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STJ Reports Strong Earnings

As mentioned above, St. Jude Medical reported its earnings for the first quarter, blowing away expectations and exciting investors. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, STJ did incredibly well. In the first quarter, analysts expected that the company would produce earnings in the amount of $0.88 per share. However, the company reported earnings $0.02 ahead of expectations at $0.90 per share.
  • Revenue – When it comes to revenue, STJ didn’t disappoint. During the quarter, analysts expected that the company would generate revenue in the amount of $1.43 billion. However, the company actually reported revenue $20 million ahead of expectations at $1.45 billion.
  • Guidance – As if strong earnings and revenue wasn’t enough, St. Jude also excited investors with the guidance it reported. In the second quarter, analysts are expecting to see earnings in the amount of $1.02 per share. However, the company said that it is expecting earnings per share to come in between $1.05 and $1.07.

How The Market Reacted To The News

As investors, one of the first things that we learn when we get started in the market is that the news causes the moves. Any time there is news released with regard to a publicly-traded company, we can expect to see movement in the market as a result. Of course, positive news leads to positive movement while negative news leads to negative movement. Naturally, with strong earnings causing investor excitement, we’re seeing incredibly positive movement out of STJ today. Currently (10:48), the stock is trading at $60.97 per share after a gain of $2.22 per share or 3.79% thus far today.

What We Can Expect To See From STJ Moving Forward

Moving forward, I have an overwhelmingly positive opinion of what we can expect to see from St. Jude Medical. First and foremost, I have to say that I’m incredibly impressed with what the company is doing – focusing on a large need in the medical industry while ensuring that parents don’t have to worry about their children’s medical bills. Being able to do so and produce gains at the same time is an incredible feat. With that said, in the short run, investors are likely to be overwhelmingly excited about the earnings report the company produced for the quarter. This will send the value of the stock further up. On top of that, with an incredible plan for growth, strong management, and a product with high demand, I’m expecting for STJ to grow in the long run as well.

What Do You Think?

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Where do you think STJ is headed moving forward and why? Let us know your opinion in the comments below!

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