Shares in Edwards Lifesciences (NYSE:EW) rose today in after hours trading after the medical device beat expectations on Wall Street with its 4th quarter and full fiscal year 2016 results.
The Irvine, Calif.-based company posted profits of $158.5 million, or 73¢ per share, on sales of $767.7 million for the 3 months ended December 31. That equates to bottom-line growth of 12.7% while sales grew 14.4% compared with the same period last year.
After adjusting to exclude 1-time items, earnings per share were 75¢, ahead of the 72¢ consensus on The Street, where analysts were looking for sales of $759.5 million.
For the full year, Edwards Lifesciences posted profits of $569.5 million, or $2.61 per share, on sales of $3 billion. That works out to a bottom-line gain of 15.1% while sales grew 18.8% compared with the fiscal year 2015.
Adjusted to exclude 1-time items, earnings per share were $2.89, just ahead of the $2.86 consensus on The Street, where analysts were looking for sales of $2.96 billion.
The company added that during its 4th quarter, it repurchased approximately $2.7 million shares for $246 million, mostly to offset dilution associated with its purchase of Valtech Cardio, which closed last month.
“We are pleased to report strong 4th quarter results, which contributed to another successful year for Edwards, as we strengthened our financial performance and product leadership positions. We ended the quarter with underlying sales growth of 15%, driven by strong adoption of transcatheter aortic valve replacement therapy, and finished the year with global sales of nearly $3 billion. And, I’m proud to report we invested aggressively in 2016 to bring innovative medical technologies to more patients and drive future growth,” chair & CEO Michael Mussallem said in prepared remarks.
Edwards Lifesciences said it expects to post adjusted EPS of between $3.30 and $3.45 on sales of between $3 and $3.4 billion for the full year 2017. 1st quarter adjusted earnings per share are pegged at between 79¢ and 89¢ on sales of between $760 and $800 million.
“We were very pleased to achieve strong financial performance and significant progress on transformational new therapies across our businesses in 2016, and expect continued growth and progress in 2017. We are enthusiastic about the continued expansion of transcatheter-based therapies for the many structural heart patients still in need, which positions us for long-term success. We believe our patient-focused innovation strategy can transform care and bring value to both healthcare systems and shareholders,” CEO Mussallem said in a press release.
EW Shares have risen 1% to $98.99 in after hours trading after rising 1.85% during the day to close at $98.02.