St. Jude Medical, Inc. (STJ) recently reaffirmed its fourth-quarter earnings outlook between 61 cents and 63 cents per share. The company expects total revenues of approximately $1.2 billion in the fourth quarter and $4.68 billion for full fiscal 2009. St. Jude Medical will report final fourth quarter and full fiscal 2009 results on Jan 27 before the market opens.
 
In terms of business segments: St. Jude Medical expects Cardiac Rhythm Management to generate sales of $698 million. Within this, implantable cardioverter defibrillators revenues should be $395 million and pacemaker revenues should be $303 million. Cardiovascular segment should generate revenues of $240 million. Atrial fibrillation revenues are expected to be $171 million and neuromodulation revenues around $94 million.
 
St. Jude Medical is a leading designer, manufacturer and distributor of medical devices used for treating cardiovascular and neurological conditions. The company’s closest competitors are Medtronic, Inc. (MDT) and Boston Scientific Corp. (BSX).
 
St. Jude Medical is a leader in the mechanical heart valve market and has implanted mechanical heart valves in over 1.8 million patients worldwide. However, mechanical valves have been yielding market share to tissue valves of late.
 
Tissue valves are growing in mid-single digits, and the mechanical valve market has been stable to declining. Though the company offers both mechanical and tissue valves, its revenues might be severely affected by the softness in its core mechanical heart valve market.
 
Currently, we have a ‘Neutral’ recommendation for St. Jude Medical.
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