The London-based company posted profits of $11.3 million, or 23¢ per share, on sales of $285.1 million for the 3 months ended March 31, seeing a 128% swing from the red on the bottom-line while sales shrunk 0.7% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were 71¢, ahead of the 68¢ consensus on The Street, where analysts were looking for sales of $287.7 million.
“We started out the year with solid results, driven primarily by continued momentum in our neuromodulation business from the AspireSR pulse generator, being somewhat offset by challenging conditions in cardiac surgery and cardiac rhythm management. We achieved progress in several other key areas of our business. We are expanding our heart valve portfolio with the recently announced acquisition of Caisson Interventional and its novel transcatheter mitral valve replacement investigational device. The combined strengths of both LivaNova and Caisson will support our strategy of advancing important, innovative therapies to market. We completed final verification and validation for our 3T Heater-Cooler design modification and obtained CE mark, which will allow us to start implementation of the upgrade within select markets in the coming weeks. We also recently submitted our application to the FDA for SenTiva, our newest VNS Therapy device. We believe our efforts and investments position LivaNova to be even more competitive, which will result in greater long-term value for our customers and shareholders alike,” CEO Damien McDonald said in a prepared statement.
LivaNova released updated guidance for the full year following the earnings report and its acquisition of Caisson Interventional, which it announced yesterday. The company expects to see net sales grow between 1% and 3%, with earnings per share for the full year between $3.10 and $3.30.
Shares have risen 3.7% today in response, up $1.98 at $56.18 as of 3:01 p.m. EDT.