EW Edwards Lifesciences Corp

Edwards Lifesciences Corp. said its fourth-quarter revenue rose 8.6% on continued strong sales growth for the medical-device maker's nonsurgical heart valves.

The medical-device maker also raised its 2016 outlook and projected fourth-quarter results mostly above analysts' views.

The Irvine, Calif., company reported revenue of $671.1 million compared with $618 million a year earlier. Edwards expected revenue of $620 million to $660 million. However, on an underlying basis, which excludes currency impacts and sales-return reserve impacts, sales improved 15%.

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. Edwards recently received Food and Drug Administration approval to study the safety and effectiveness of the company's Sapien 3 valve in lower-risk patients. If the study ultimately leads to U.S. regulatory approval, Edwards will be able to market the heart valves to a broader group of patients.

For 2016, the company raised its per-share earnings estimate to $2.57 to $2.67 and revenue of $2.6 billion and $2.85 billion, compared with its previous estimate for per-share profit of $2.30 to $2.40 and revenue of $2.5 billion to $2.75 billion. The guidance reflects Edwards raising its transcatheter heart valve sales estimate by $100 million to between $1.3 billion and $1.5 billion.

For the first quarter, the company forecast per-share earnings of 64 cents to 70 cents and revenue of $640 million to $680 million. Analysts polled by Thomson Reuters expected per-share profit of 59 cents and revenue of $643 million.

For the latest quarter, sales of Edwards's transcatheter heart valves, which are implanted with catheter tubes inserted through the arteries, increased 25% to $334.3 million. According to FactSet, analysts had expected transcatheter heart-valve sales of $319 million. Meanwhile, underlying sales of transcatheter heart valves climbed 32%.

Edwards's fourth-quarter per-share results reflect the company's 2-for-1 stock split completed in December, Edwards's second stock split since going public in April of 2000. Companies typically make such moves to make their stocks more attractive to a broader range of investors. Though investors hold more shares under such stock splits, their relative stakes in the companies typically aren't affected.

Over all, Edwards reported a profit of $140.7 million, or 64 cents a share, up from $109.2 million, or 50 cents a share, a year earlier. Excluding acquisition-related charges and other items, per-share earnings rose to 63 cents from 53 cents. Analysts polled by Thomson Reuters expected 62 cents.

Gross margin fell to 73.8% from 74%, driven by higher manufacturing costs.

Surgical heart valve sales rose 4.8% to $196.2 million. Analysts expected $196 million, according to FactSet. Segment sales increased slightly on an underlying basis.

Critical-care product sales dropped 2.6% to $140.6 million. Analysts projected $136 million, according to FactSet. On an underlying basis, segment sales improved by 3.6%.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

February 02, 2016 16:35 ET (21:35 GMT)

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