Edwards Lifesciences (NYSE:EW) handily beat expectations for its 3rd quarter yesterday and raised its earnings outlook for the rest of the year, sending share prices up about 5% this morning.
Irvine, Calif.-based Edwards posted profits of $118.1 million, or $1.07 per share, on sales of $615.5 million for the 3 months ended Sept. 30, for profit growth of 24.8% on sales growth of 1.3% compared with Q3 2014. Per-share earnings stayed at $1.07 when adjusted to exclude 1-time items, a full 9 ahead of expectations on Wall Street, where analysts were looking for revenues of $597.8 million.
The news sent EW shares up 5.1% to $154.35 apiece today in early trading.
“Strong 3rd-quarter results were driven by total underlying sales growth of 14%,” chairman & CEO Michael Mussallem said in prepared remarks. “Adoption of our Sapien 3 transcatheter valve system continued to propel our growth, which exceeded our projections. Furthermore, the growing body of compelling clinical outcomes gives us confidence that with expanded evidence, larger populations of patients suffering from aortic stenosis will be eligible for [trancatheter aortic valve implants].”
Edwards raised its earnings forecast for the rest of 2015, saying it now expects to post adjusted EPS of $4.43 to $4.53, up from prior guidance of $4.30 to $4.40. Sales are still expected to come in at $2.3 billion to $2.5 billion, the company said.
“Our [tanscatheter heart valve] performance was driven by strong procedure growth and the on-going Sapien 3 launch, which is on track, and clinicians are rapidly adopting our best-in-class technology,” Mussallem added. “Based on our year-to-date results and the strong demand for Sapien 3, we now expect our underlying THV sales in 2015 to be at the high end of our previously estimated 25% to 35% growth rate.”