St. Jude Medical Ascends Over EPS Estimates, Provides Holy Guidance

is up on Wednesday after posting a successful first quarter on the EPS front. The St. Paul, Minnesota-based firm's EPS climbed seven percent to $0.92 and edged the Wall Street consensus of $0.91. Revenue declined four percent year-over-year to $1.34 billion and fell just shy of the $1.36 billion analysts expected.

The medical device manufacturer's pacemaker sales plunged 12 percent to $251 million, driven by a 15 percent drop internationally. Domestic sales fell eight percent to $107 million.

Sales in St. Jude's cardiac rhythm management segment declined nearly eight percent to $678 million. International sales in this segment dropped the most, falling 10.5 percent to $316 million. Meanwhile, US sales dipped to $362 million - a decrease of about five percent. Sales in the company's remaining segments all finished within +/- five percent of the Q1 2012 results.

On April 8, RBC downgraded the company from Sector Perform to Underperform.

, St. Jude's is being sued for alleged problems with the manufacturing and oversight of its Riata defibrillators that lead to the injuries or deaths of over 30 patients. The suits have been filed in the Los Angeles Superior Court and federal court in the Central District of California, as notes the WSJ. Importantly, as the WSJ mentions, the plaintiffs face significant legal hurdles. In other words, the odds of a massive settlement are slim.

St. Jude's expects second quarter earnings of $0.93 to $0.95 per share. The middle-ground of $0.94 is precisely the number analysts expect to see. For the year, the firm expects EPS to close in the $3.68 to $3.73 range. As analysts want to see the company reach $3.70 per share, it appears to be on the right track.

St. Jude's has closed in the low $40s every day but one since late January. It continues to hover in that range on Wednesday, trading at around $42.50 in the morning hours. The successful first quarter earnings report has given it a slight boost, bumping it up about one percent on Wednesday morning.