July 29 (Bloomberg) -- Edwards Lifesciences Corp., the biggest maker of heart valves that are inserted without cracking open the chest, raised its 2014 forecast after second-quarter profit beat analysts’ estimates on device demand.
Net income rose to $547 million, or $5.09 a share, bolstered by a legal settlement with Medtronic Inc., from $93.3 million, or 81 cents a share, a year earlier, the Irvine, California-based company said in a statement. Profit excluding one-time items of 88 cents a share beat the 77 cent average of 19 analysts’ estimates compiled by Bloomberg. Revenue increased 11 percent to $575.1 million.
Sales rose across all of the company’s product lines, with revenue from the Sapien aortic valves gaining 21 percent as the company introduced updated models in Europe and Japan, Chief Executive Officer Michael Mussallem said in the statement. Edwards recorded a $750 million gain during the quarter from settling a patent-infringement case over the valves with Minneapolis-based Medtronic, which won U.S. approval of its competing CoreValve in January.
“While our litigation settlement provided a large financial gain this quarter, we are particularly pleased that our sales were better than expected across all product lines,” Mussallem said. Even as “competition intensifies, with the increasing adoption of this therapy around the globe, we believe we are poised for continued strong sales growth in the second half of 2014,” he said.
The company raised its 2014 earnings forecast to $3.24 a share to $3.34 a share excluding one-time items, from $3.10 a share.
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