Edwards Lifesciences Details Strong FY15 Earnings Outlook - Update

(RTTNews) - Cardiac systems and heart valves maker Edwards Lifesciences Corp (EW), Monday detailed a strong earnings outlook for 2015 while reaffirming its expectations for the current year.

For fiscal year 2015, Edwards, based in Irvine, California, expects adjusted earnings in the range of $3.90 to $4.10 per share on sales of $2.3 billion to $2.5 billion, reflecting underlying sales growth of 7 to 11 percent.

Analysts polled by Thomson Reuters currently expect earnings of $3.96 per share on revenues of $2.48 billion for 2015. Analysts' estimates typically exclude special items.

"We expect 2015 to be another year of attractive organic sales growth for Edwards Lifesciences as we continue executing our focused innovation strategy to provide breakthrough therapies for patients in need," said Michael Mussallem, the company's chairman and CEO.

Edwards is expected to discuss its long-term growth strategy, provide an update on its technology pipeline and share its financial guidance for 2015 during its annual investor conference today.

Edwards has been benefiting from sales of transcatheter heart valves and expects these to generate sales of $1 billion to $1.1 billion in 2015, reflecting a 15 to 25 percent underlying growth rate.

The company expects surgical heart valves and cardiac surgery products to generate sales of $780 million to $820 million in sales, implying a growth of 1 to 3 percent. Surgical heart valve products sales are expected to grow 3 to 5 percent.

Edwards expects to generate Critical Care sales of $520 million to $570 million in 2015, representing a 2 to 4 percent underlying growth rate.

Edwards also revealed two strategic investments. The company raised its minority stake in CardioKinetix Inc, a privately held company that makes a catheter-based treatment for heart failure. Edwards also acquired intellectual property in a bid to expand efforts to develop transcatheter mitral valves.

Also Edwards announced that Katie Szyman will be joining the company at the start of 2015 as corporate vice president, critical care. She comes from Medtronic, where she has held a number of leadership roles during the last 20 years.

For fiscal year 2014, Edwards continues to expect adjusted earnings of $3.33 to $3.39 per share, while analysts currently expect $3.39 per share.

In October, Edwards reported a better-than-expected increase in third-quarter profit, on a 22 percent climb in sales.

EW is trading at $134.18, up $4.47 or 3.45%, on a volume of 0.79 million shares on the NYSE.