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Edwards Lifesciences Corp.'s second-quarter earnings grew 19.6%
behind double-digit sales growth in the company's business for
replacement heart valves.
The Irvine, Calif., company boosted its full-year earnings outlook and
said it remains on track to post more than $100 million in sales of
closely watched "transcatheter" valve devices, currently on sale in
Europe, which don't require major surgery.
The company expects "to meet or exceed all of our previously stated
financial goals" this year, Michael A. Mussallem, Edwards' chairman
and chief executive, said in a release.
The company posted second-quarter profits of $47.5 million, or 81
cents per share, up from $39.7 million, or 67 cents a share, a year
ago. Excluding one-time items, Edwards said it earned 79 cents a share
in the quarter.
Though unfavorable foreign exchange rates hurt sales, a hedging
program added 2 cents to the bottom line. Edwards topped the average
expected tally, at 76 cents a share, among analysts surveyed by
Thomson Reuters.
Sales of $335.5 million, up 2.4%, also beat Wall Street forecasts.
Still, Edwards share slipped to $67.00 in after-hours trading after
climbing 11 cents to $68.11 during Monday's regular trading session.
Sales in the company's Heart-Valve Therapy business rose 12%, to
$182.1 million, and the increase was higher when the negative impact
of foreign-currency rates and a charge associated with re-launching
certain valve products previously pulled from the market are excluded,
Edwards said.
The company posted $26.5 million in transcatheter-valve sales in the
recent quarter, Mussallem said.
The valves, which Edwards sells under the name "Sapien," can be
threaded into place with a catheter in the femoral artery or delivered
through an incision between the ribs. The valves are seen as an option
for patients who are too sick or too old to withstand traditional
heart surgery.
Mussallem added on a conference call that Edwards is on track to
exceed its goal of doubling the number of transcatheter-valve
procedures this year.
The company competes in Europe with Medtronic Inc. (MDT) and believes
it has a long head start in its effort to reach the U.S. market.
Mussallem said the company still expects that "Cohort A" of the big
U.S. trial, called Partner, will finish enrolling patients by the end
of August. All the patients have already been enrolled in the study's
other cohort.
In the Critical-Care business, which includes heart-monitoring
devices, sales declined 3.1%, to $113 million, also nicked by
unfavorable foreign exchange rates. This business felt an impact from
cutbacks in hospital spending, Mussallem said.
Looking ahead, Edwards improved its guidance for Heart-Valve Therapy
sales, but lowered its guidance for Critical Care due to hospital
spending cutbacks and the recently announced sale of a business that
makes systems to treat patients with kidney failure. Overall, Edwards
said it still continues to expect underlying sales growth of between
10% and 12% this year.
The company raised its earnings view, however, and now sees full-year
earnings between $3.00 and $3.06 per share, compared with a forecast
for $2.95 and $3.03 per share made in April. Wall Street had targeted
$3.00 per share.
For the third quarter, Edwards said it sees earnings between 66 cents
and 70 cents per share, below Wall Street's 71 cent target.
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behind double-digit sales growth in the company's business for
replacement heart valves.
The Irvine, Calif., company boosted its full-year earnings outlook and
said it remains on track to post more than $100 million in sales of
closely watched "transcatheter" valve devices, currently on sale in
Europe, which don't require major surgery.
The company expects "to meet or exceed all of our previously stated
financial goals" this year, Michael A. Mussallem, Edwards' chairman
and chief executive, said in a release.
The company posted second-quarter profits of $47.5 million, or 81
cents per share, up from $39.7 million, or 67 cents a share, a year
ago. Excluding one-time items, Edwards said it earned 79 cents a share
in the quarter.
Though unfavorable foreign exchange rates hurt sales, a hedging
program added 2 cents to the bottom line. Edwards topped the average
expected tally, at 76 cents a share, among analysts surveyed by
Thomson Reuters.
Sales of $335.5 million, up 2.4%, also beat Wall Street forecasts.
Still, Edwards share slipped to $67.00 in after-hours trading after
climbing 11 cents to $68.11 during Monday's regular trading session.
Sales in the company's Heart-Valve Therapy business rose 12%, to
$182.1 million, and the increase was higher when the negative impact
of foreign-currency rates and a charge associated with re-launching
certain valve products previously pulled from the market are excluded,
Edwards said.
The company posted $26.5 million in transcatheter-valve sales in the
recent quarter, Mussallem said.
The valves, which Edwards sells under the name "Sapien," can be
threaded into place with a catheter in the femoral artery or delivered
through an incision between the ribs. The valves are seen as an option
for patients who are too sick or too old to withstand traditional
heart surgery.
Mussallem added on a conference call that Edwards is on track to
exceed its goal of doubling the number of transcatheter-valve
procedures this year.
The company competes in Europe with Medtronic Inc. (MDT) and believes
it has a long head start in its effort to reach the U.S. market.
Mussallem said the company still expects that "Cohort A" of the big
U.S. trial, called Partner, will finish enrolling patients by the end
of August. All the patients have already been enrolled in the study's
other cohort.
In the Critical-Care business, which includes heart-monitoring
devices, sales declined 3.1%, to $113 million, also nicked by
unfavorable foreign exchange rates. This business felt an impact from
cutbacks in hospital spending, Mussallem said.
Looking ahead, Edwards improved its guidance for Heart-Valve Therapy
sales, but lowered its guidance for Critical Care due to hospital
spending cutbacks and the recently announced sale of a business that
makes systems to treat patients with kidney failure. Overall, Edwards
said it still continues to expect underlying sales growth of between
10% and 12% this year.
The company raised its earnings view, however, and now sees full-year
earnings between $3.00 and $3.06 per share, compared with a forecast
for $2.95 and $3.03 per share made in April. Wall Street had targeted
$3.00 per share.
For the third quarter, Edwards said it sees earnings between 66 cents
and 70 cents per share, below Wall Street's 71 cent target.
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