Edwards Soars After Raising Forecast for Third Time in a Row

Updated on
  • Adjusted earnings of 76 cents a share top 70-cent estimate
  • Boosts annual profit forecast to range of $2.78 to $2.88

Edwards Lifesciences Corp. soared after the world’s largest maker of aortic valves implanted without open-heart surgery beat analysts’ estimates and raised its 2016 earnings forecast for a third quarter in a row as younger and healthier patients started getting the devices.

Second-quarter earnings excluding one-time items totaled 76 cents a share, the Irvine, California-based company said Tuesday in a statement, beating the 70-cent average of analysts’ estimates surveyed by Bloomberg. Edwards boosted its 2016 earnings forecast to $2.78 to $2.88 a share, from $2.67 to $2.77 a share.

The stock jumped 6.6 percent to $115.46 in late trading at 4:52 p.m. New York time. The shares have increased 40 percent in the past 12 months.

The company’s latest heart valve, known as the Sapien 3, reduced the risk that a broader group of patients would suffer a stroke or die, compared to those treated with traditional open-heart surgery, a study released in April found. While the device had been restricted to older patients who were at high risk from surgery, the findings may pave the way for more than 100,000 Americans who are at intermediate risk, increasing the annual market for the devices to $5 billion, Edwards Chief Executive Officer Michael Mussallem has said.

Highlights of second-quarter results:

  • Net income rose 12 percent to $126.6 million, or 58 cents a share, from $112.7 million, or 51 cents, a year earlier.
  • Revenue rose 23 percent to $759.3 million, continuing a year-over-year growth streak that started in 2002.
  • Global transcatheter heart valve sales jumped 49 percent to $418.6 million.
  • U.S. transcatheter heart valve sales soared 72 percent to $246.4 million.