WASHINGTON (dpa-AFX) - Edwards Lifesciences Corp. (EW) said that sales for the fourth quarter 2016 are trending towards the lower end of the previously stated $750 million to $790 million guidance, hurt by lower Surgical Heart Valve Therapy or SHVT sales trending below October guidance and the impact of foreign exchange. Transcatheter Heart Valve Therapy or THVT sales for the fourth quarter are expected to be in the range of $415 million to $430 million, consistent with its October guidance. Critical Care sales are trending consistent with guidance.
During its annual investor conference today in New York City, Edwards' management will present the company's financial guidance for 2017. Edwards expects underlying sales growth of 10 to 14 percent, or $3.0 billion to $3.4 billion. Additionally, the company expects adjusted earnings per share of $3.30 to $3.45. This includes estimated net of $0.10 per share from the pending acquisition of Valtech Cardio, and an estimated $0.08 to $0.13 per share benefit from the accounting change related to stock-based compensation. The company also expects free cash flow of $575 million to $650 million, with all guidance excluding special items.
Analysts polled by Thomson Reuters expect the company to report earnings of $3.40 per share and revenues of $3.34 billion for fiscal year 2017. Analysts' estimates typically exclude special items.
Edwards said it will discuss the company's growing confidence in its long-term TAVR outlook. Itwill also discuss the various components that expand the TAVR opportunity, which it continues to expect to exceed $5 billion by 2021, and the additional global opportunity beyond 2021. Additionally, the company will explain its updated understanding of the much larger prevalence of severe symptomatic aortic stenosis (AS) and lower treatment rates, reflecting the under-diagnosis and under-treatment of the disease.
The company will also discuss its plans to address the three primary factors driving the expected growth including broader indications for the TAVR therapy, advances in the technology and greater therapy awareness. Edwards is investing aggressively in research and development to generate transformational new TAVR products to further distinguish its leadership position. In 2017, the company continues to anticipate European regulatory approval for its Edwards SAPIEN 3 Ultra System and Edwards CENTERA Valve System. The company is also initiating a groundbreaking clinical trial to expand TAVR therapy to treat asymptomatic severe AS patients.
Edwards expects to generate THVT sales of $1.7 billion to $2.0 billion in 2017, representing a 15 to 20 percent underlying growth rate.
Edwards expects to generate Surgical Heart Valve Therapy sales of $750 million to $790 million in 2017, representing a 1 to 3 percent underlying growth rate.
Edwards expects to generate Critical Care sales of $560 million to $600 million in 2017, representing a 5 to 7 percent underlying growth rate.
Edwards will highlight the early human experience with its new transseptal delivery system for the Edwards-CardiAQ mitral valve. The company is planning for a CE Mark for this valve in 2018. The company will also discuss in more detail the pending acquisition of Valtech Cardio, which is expected to close in early 2017. A CE Mark study is continuing to enroll for the tricuspid application.
Edwards will also introduce its new PASCAL transcatheter mitral valve repair system. The first patients have already been treated with this system, and the company plans to initiate a CE Mark study in 2017. In addition, the company will highlight the early promising patient experience treating tricuspid regurgitation with the Edwards FORMA tricuspid spacer, and is planning for a CE Mark in 2018.
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