WASHINGTON (dpa-AFX) - Shares of Edwards Lifesciences Corp. (EW) increased nearly five percent in extended trading on Thursday after the medical devices maker reported results for the third quarter that topped analysts' expectations. The company also provided earnings and sales guidance for the fourth quarter, and raised outlook for the full-year 2014.
The company reported a profit for the quarter that increased 23 percent from last year, reflecting double-digit sales growth amid strong sales of transcatheter heart valves or THV.
'We are pleased with the results in all product groups and regions this quarter, highlighted by transcatheter heart valves that exceeded our expectations and drove very strong sales performance. The strong year-to-date results reinforce our conviction in our focused innovation strategy and its impact on unmet patient needs,' Chairman and CEO Michael Mussallem said in a statement.
Irvine, California-based Edwards Lifesciences reported net income of $94.6 million or $0.87 per share for the third quarter, higher than $76.8 million or $0.68 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter was $87.0 million or $0.80 per share, compared to $79.5 million or $0.70 per share in the year-ago quarter.
On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.73 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter improved 22.6 percent to $607.4 million from $495.6 million in the same quarter last year, and topped eighteen Wall Street analysts' consensus estimate of $546.32 million.
Excluding the impact of foreign exchange rates and the sales return of THV, underlying sales grew 18.9 percent.
Sales for the quarter was driven mainly by a 55.3 percent surge in THV sales to $267.2 million, and surgical heart valves sales improvement of 6.0 percent to $203.4 million from a year ago. Critical care product sales also grew 3.9 percent to $136.8 million from last year.
Sales in the U.S. grew 27.7 percent to $296.3 million, and international sales improved 18.1 percent to $311.1 million from last year, with Europe sales improving 22.4 percent, Japan sales growing 17.9 percent, and rest of the world sales rising 8.1 percent from last year.
However, gross profit margin for the quarter contracted 180 basis points to 72.3 percent from last year, driven primarily by a 160 basis point negative impact of foreign exchange, as well as higher costs associated with operations in Utah.
Looking ahead to the fourth quarter, the company expects adjusted earnings in a range of $0.89 to $0.95 per share, on anticipated sales between $575 million and $615 million. Analysts currently expect the company to earn $0.95 per share on revenues of $586.91 million for the quarter.
For fiscal 2014, the company raised adjusted earnings guidance to a range of $3.33 to $3.39 per share from the prior outlook in the range of $3.24 to $3.34 per share. Meanwhile, sales is now projected to exceed the high end of the previous forecast between $2.05 billion and $2.25 billion.
Street is currently looking for full-year 2014 earnings of $3.30 per share, on annual revenues of $2.14 billion.
'Although competition is intensifying, we believe our new products position us well to drive solid organic sales growth and help clinicians address critical unmet patient needs. We are encouraged that new therapies supported by compelling evidence are being adopted even in this challenging healthcare climate,' Mussallem added.
EW closed Thursday's regular trading at $105.19, down $0.07 or 0.07% on a volume of 1.47 million shares. However, the stock gained $5.00 or 4.75% in after-hours trading.
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