Edwards Lifesciences Revenue Rises 1.3%
October 26 2015 - 05:50PM
Dow Jones News
Edwards Lifesciences Corp. said its third-quarter revenue rose
1.3% as continued strong sales growth for the medical-device
maker's nonsurgical heart values was muted by impacts from a strong
U.S. dollar.
The Irvine, Calif., company's revenue increased to $615.5
million from $607.4 million a year earlier. Edwards had projected
revenue of $580 million to $620 million. However, on an underlying
basis, which excludes currency impacts and sales-return reserve
impacts, sales rose 14%.
For the year, Edwards raised its per-share earnings estimate to
between $4.43 and $4.53, from its previous estimate for per-share
profit of $4.30 to $4.40.
For the current quarter, the company forecast per-share earnings
of $1.11 and $1.21 on revenue of $620 million to $660 million.
Analysts polled by Thomson Reuters expected per-share profit of
$1.14 and revenue of $631 million.
The company has continued to post better-than-expected sales of
its nonsurgical heart valves, despite increased competition. The
devices, known as transcatheter heart valves, provide an
alternative option for elderly patients who are considered at high
risk of complications in open-heart surgery.
Ahead of the earnings, Wells Fargo analysts said they expect
Edwards to continue to dominate the market for transcatheter heart
valves while the company helps grow a related market in
transcatheter mitral valve repair and replacements.
For the latest quarter, sales of Edwards's transcatheter heart
valves, which are implanted with catheter tubes inserted through
the arteries, grew 11% to $296.1 million. According to FactSet,
analysts had expected transcatheter heart-valve sales of $278
million. Meanwhile, underlying sales of transcatheter heart valves
climbed 29%.
Chairman and Chief Executive Michael A. Mussallem said in
prepared remarks on Monday that the transcatheter heart valve
business's performance was driven by increases in procedures and
the launch of its Sapien 3 heart valve.
Mr. Mussallem also said that based on Edwards's year-to-date
results and the strong demand for Sapien 3, the company now expects
its underlying transcatheter heart valve sales for 2015 to reach
the high end of previous growth estimate of between 25% and
35%.
Overall, Edwards Lifesciences reported a profit of $118.1
million, or $1.07 a share, up from $94.6 million, or 87 cents a
share, a year earlier. The company had projected per-share earnings
of 92 cents to $1.
Sales of the company's traditional heart valves, which are
implanted via open-heart surgery, decreased 7.6% to $187.9 million,
but on an underlying basis sales edged up 0.2% on stronger volume.
Critical-care segment sales fell 3.8% to $131.5 million, but grew
5% on an underlying basis.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 26, 2015 17:35 ET (21:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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