Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
~ $EW ~ Earnings posted, pending or coming soon! In Charts and Links Below!
~ $EW ~ Earnings expected on Thursday *
This Week In Earnings: Earnings are coming or are already posted! This is what the charts look like! If you play the earnings these posts can be very helpful to you!
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.
http://stockcharts.com/h-sc/ui?s=EW&p=D&b=3&g=0&id=p88783918276&a=237480049
http://stockcharts.com/h-sc/ui?s=EW&p=W&b=3&g=0&id=p54550695994
~ Barchart: http://barchart.com/quotes/stocks/EW?
~ OTC Markets: http://www.otcmarkets.com/stock/EW/company-info
~ Google Finance: http://www.google.com/finance?q=EW
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=EW#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=EW+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=EW
Finviz: http://finviz.com/quote.ashx?t=EW
~ BusyStock: http://busystock.com/i.php?s=EW&v=2
~ CandlestickChart: http://www.candlestickchart.com/cgi/chart.cgi?symbol=EW&exchange=US
~ Investorshub Trades: http://ih.advfn.com/p.php?pid=trades&symbol=EW
~ Investorshub Board Search: http://investorshub.advfn.com/boards/getboards.aspx?searchstr=EW
~ Investorshub PostStream Search: http://investorshub.advfn.com/boards/poststream.aspx?ticker=EW
~ Investorshub Goodies Search: http://investorshub.advfn.com/boards/msgsearchbyboard.aspx?boardID=18582&srchyr=2011&SearchStr=EW
~ Investorshub Message Search: http://investorshub.advfn.com/boards/msgsearch.aspx?SearchStr=EW
~ MarketWatch: http://www.marketwatch.com/investing/stock/EW/profile
~ E-Zone Chart: http://www.windchart.com/ezone/signals/?symbol=EW
~ 5-Min Wind: http://www.windchart.com/stockta/analysis?symbol=EW
~ 10-Min Wind: http://www.windchart.com/stockta/analysis?symbol=EW&size=l&frequency=10&color=g
~ 30-Min Wind: http://www.windchart.com/stockta/analysis?symbol=EW&size=l&frequency=30&color=g
~ 60-Min Wind: http://www.windchart.com/stockta/analysis?symbol=EW&size=l&frequency=60&color=g
http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916
*If the earnings date is in error please ignore error. I do my best.
Not here. Busy with 2 of my own boards plus now Facebook.
http://investorshub.advfn.com/boards/board.aspx?board_id=22857
"Dawgg"
http://investorshub.advfn.com/boards/board.aspx?board_id=21519
HOSS TRACKZ
http://investorshub.advfn.com/boards/board.aspx?board_id=23067
This stock treat me so well!
A number of equity research firms have modified their stock ratings and price targets on shares of Edwards Lifesciences (NYSE: EW) in the last week:
Edwards Lifesciences had its price target lowered by analysts at Goldman Sachs to $86.00.
Edwards Lifesciences was given a reiterated “buy” by analysts at Jefferies. The analysts now have a $92.00 price target on the stock.
Edwards Lifesciences was given a reiterated “overweight” by analysts at Piper Jaffray. The analysts now have a $83.00 price target on the stock.
Edwards Lifesciences was upgraded by analysts at Lazard Capital from a “neutral” rating to a “buy” rating.
Edwards Lifesciences was given a reiterated “market perform” by analysts at Rodman & Renshaw.
About Edwards Lifesciences:
Edwards Lifesciences Corporation (Edwards Lifesciences) is a global player in products and technologies designed to treat advanced cardiovascular disease. The Company is focused specifically on technologies that treat structural heart disease and critically ill patients. The products and technologies provided by Edwards Lifesciences to treat advanced cardiovascular disease are categorized into four areas: Heart Valve Therapy, Critical Care, Cardiac Surgery Systems and Vascular. The Company operates in United States, Europe, Japan and others. In March 2011, the Company completed the acquisition of Embrella Cardiovascular, Inc. During year ended December 31, 2010, the Company discontinued its MONARC transcatheter mitral valve program
Shares of Edwards Lifesciences opened at 63.02 on Friday. Edwards Lifesciences has a 52 week low of $61.63 and a 52 week high of $91.82. The stock’s 50-day moving average is $73.01 and its 200-day moving average is $81.1. The company has a market cap of $7.189 billion and a price-to-earnings ratio of 32.02.
Potential Edwards Lifesciences (EW) Trade Has $57.28 Breakeven
Posted: Friday, November 18, 2011 7:54 AM EDT
Edwards Lifesciences Corp (NYSE: EW) closed Thursday's trading session at $63.68. In the past year, the stock has hit a 52-week low of $61.63 and 52-week high of $91.82. Edwards Lifesciences (EW) stock has been showing support around $61.91 and resistance in the $66.13 range. Technical indicators for the stock are Bearish and S&P gives Edwards Lifesciences (EW) a positive 4 STARS (out of 5) buy rating. For a hedged play on Edwards Lifesciences (EW), look at the Jan '12 $60.00 covered call for a net debit in the $57.28 area. That is also the break-even stock price for this trade. This covered call has a duration of 64 days, provides 10.05% downside protection and an assigned return rate of 4.75% for an annualized return rate of 27.08% (for comparison purposes only). Edwards Lifesciences (EW) has a current trailing average dividend yield of 0%. [THA-MarketIntelligenceCenter.com]
Now that was funny. Well not so funny if it is true! I guess we have those heart failure drugs to help it if is true. That ABI$ stock also dropped huge from the highs today. Crazy day in the markets.
And I was thinking yesterday was maybe the dip.
down $3.50 today, thats a biggee,,,market was fine until someone
yelled Bombs Bin Laden geezus
Study: Stock Market Drops Might Cause Heart Attacks - A Look at Heart Disease Treatment Stocks EW,
http://www.smallcapnetwork.com/Study-Stock-Market-Drops-Might-Cause-Heart-Attacks-A-Look-at-Heart-Disease-Treatment-Stocks-EW-ABIO-BHRT-OSIR-AHRO/s/via/3414/blog/view/p/mid/1/id/14/
Down a dollar today - no biggie.
Edwards Lifesciences (EW) Showing Bearish Technicals But Could Fall Through $65.11 Support
Posted: Friday, November 11, 2011 7:50 AM EDT
Edwards Lifesciences (NYSE:EW) closed Thursday's seesaw trading session at $69.02. In the past year, the stock has hit a 52-week low of $61.63 and 52-week high of $91.82. Edwards Lifesciences (EW) stock has been showing support around $65.11 and resistance in the $75.17 range. Technical indicators for the stock are Bearish and S&P gives Edwards Lifesciences (EW) a positive 4 STARS (out of 5) buy rating. For a hedged play on Edwards Lifesciences (EW), look at the Jan '12 $65.00 covered call for a net debit in the $62.02 area. That is also the break-even stock price for this trade. This covered call has a duration of 71 days, provides 10.14% downside protection and an assigned return rate of 4.80% for an annualized return rate of 24.70% (for comparison purposes only). Edwards Lifesciences (EW) has a current trailing average dividend yield of 0%. [ATU-MarketIntelligenceCenter.com]
Edwards Lifesciences Crosses Below its 10-day MA (EW)
Published on Wed, 11/09/2011 - 13:03
Today, shares of Edwards Lifesciences (NYSE:EW) have crossed bearishly below their 10-day moving average of $75.47 on a volume of 349K shares. This may provide short-term investors a chance for a short position, as such a crossover often suggests lower prices in the near term.
Edwards Lifesciences (NYSE:EW) has potential upside of 16.2% based on a current price of $74.09 and analysts' consensus price target of $86.12. Edwards Lifesciences shares should encounter resistance at the 200-day moving average (MA) of $81.16 and support at the 50-day MA of $73.55.
Edwards Lifesciences Corporation designs, develops, manufactures, and markets products and services to treat late-stage cardiovascular disease. The Company's products include tissue replacement heart valves, heart valve repair products, hemodynamic monitoring devices, angioscopy equipment, oxygenators, and pharmaceuticals. Edwards supplies its products to customers located worldwide.
Over the past year, Edwards Lifesciences has traded in a range of $61.63 to $91.82 and is now at $74.09, 20% above that low. Over the past week, the 200-day moving average (MA) has remained constant while the 50-day MA has advanced 0.3%.
Edwards Lifesciences heart valve study halted
Michelle Fay Cortez, Bloomberg News
Tuesday, November 8, 2011
Edwards Lifesciences Corp.'s Sapien aortic heart valve caused complications in a trial when inserted directly into the heart, leading researchers to halt the study, according to an analyst from Wells Fargo Securities.
Five of 34 patients getting Sapien died, suffered a stroke or developed kidney failure, compared with one stroke among 38 patients getting traditional surgery, said Larry Biegelsen, a Wells Fargo Securities analyst in New York, in a note to clients Tuesday. Biegelsen said he learned of the findings at the meeting of Transcatheter Cardiovascular Therapeutics in San Francisco, where the data will be presented Thursday.
The device was inserted with what is known as a transapical procedure, when the valve is threaded straight into the heart through a space between two ribs, Biegelsen said. The approach is generally performed on patients who have femoral arteries that are too clogged to enable the valve to safely pass through on the way to the heart.
The trial, called Staccato, was designed to include 200 relatively low-risk patients. It was halted after just 72 patients were treated, Biegelsen said.
Sarah Huoh, a spokeswoman for Edwards, declined to comment.
The risks probably occurred because the study had a poor design and the surgeons and cardiologists who were implanting the device didn't have enough experience, Biegelsen said, attributing the information to unidentified physicians who were gathering for the meeting in San Francisco.
Edwards, based in Irvine, won approval last week for the Sapien valve when inserted through the femoral artery and is waiting for Food and Drug Administration approval of the transapical approach.
"We continue to believe that the transapical approach to Edwards Sapien transcatheter aortic valve implant will be approved in the U.S. next year," Biegelsen wrote. "The transapical approach accounts for about half of Edwards' Sapien sales in Europe," where the device has been sold for several years, he wrote.
Nice, post & commentary.
Bulls and Bears on the Trenches - Edwards Lifesciences
Published on Monday, 07 November 2011 04:48
Written by Danny Miller
New York, November 7th (TradersHuddle.com) - Shares of Edwards Lifesciences Corporation (NYSE:EW) closed the trading day lower by $0.36 or -0.47% from its previous close. Edwards Lifesciences' shares price action formed what is considered to be a doji close, where the open and close prices are very close to each other, mainly signaling an indecision between buyers and sellers.
Edwards Lifesciences Corporation (NYSE:EW) designs, develops, manufactures, and markets products and services to treat late-stage cardiovascular disease. The Company's products include tissue replacement heart valves, heart valve repair products, hemodynamic monitoring devices, angioscopy equipment, oxygenators, and pharmaceuticals.
Edwards Lifesciences' current stock range is defined by a trough, which marks calculated support at $72.12 and by a peak that marked the resistance point at $77.40. These levels are closely watched by traders managing their positions.
Traders wanting to establish a position in Edwards Lifesciences or traders that are already holding the stock can use the doji close to their advantage, since the pattern present a short term pause in the stock's price action. This pause results in an entry point for traders depending of which way the stock resolves this short term indecision.
Doji are important candlesticks that provide information on their own and as components in a number of important patterns. Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns.
Any bullish or bearish bias is based on preceding price action and future confirmation. In the case of Edwards Lifesciences, given that the stock finished the session lower, bears should monitor the stock, as it could reverse if it manages to trade above today's intraday high. Below a Doji illustration:
yeah go ahead and do it, I'll take care of the board,,,,,,
good people here and good stock....
have a nice day
Stan
EW Receives FDA Approval to Expand U.S. Clinical Trial of Next-Generation Transcatheter Valve:
http://ih.advfn.com/p.php?pid=nmona&article=49832028
Thanks dealorfx.
Edwards Backs Limits on Heart Valve to Assure U.S. Coverage
By Anna Edney - Nov 2, 2011 6:58 PM ET
Edwards Lifesciences Corp. (EW) accepted restrictions on its Sapien heart valve that may cut U.S. sales $100 million in 2015 in exchange for guarantees Medicare will pay for its use in patients too sick for chest-opening surgery.
The company backed most limits sought by the Society of Thoracic Surgeons in Chicago and the American College of Cardiology in Washington as it awaits regulatory approval to sell the first less-invasive heart valve in the U.S.
The Food and Drug Administration is expected to clear Sapien as soon as this week, said Jan Wald, a senior analyst with Morgan Keegan & Co. in Boston. Curbs would limit its use to hospitals with equipment necessary for the procedure and teams of doctors trained on the device. Hospital oversight boards would be required to approve doctors for the procedure and monitor the device’s use in patients with a narrowing of their aortic valve.
“I’m not really sure what options they had once the societies wrote the letter,” Wald said in an e-mail.
Edwards shares gained 1.2 percent to $74.37 at the close in New York. The company’s stock has declined 8 percent this year.
Global revenue for the Irvine, California-based company’s heart device will fall to $597 million in 2012 and $1.1 billion in 2015 because of anticipated restrictions on use, Michael Weinstein, an analyst for JPMorgan Chase & Co. (JPM), wrote in a note to clients Oct. 4. No curbs on the product would have generated $615 million in sales in 2012 and $1.4 billion in 2015, he said.
Sales Estimate
Weinstein estimates U.S. sales of $492 million in 2015 compared with a consensus from analysts of $584 million, he said. Edwards’s
sales forecast has remained unchanged at $20 million to $25 million in the first three months after the device is introduced in the U.S. and $150 million to $250 million in the first full year, said Sarah Huoh, a spokeswoman, in an e-mail.
The societies’ proposed restriction policy “provides a sound basis for CMS coverage policy,” Huoh said. Edwards also agrees with the societies that the U.S. health plans should pay only for FDA-approved uses in inoperable and high-risk patients at this time.
If it gains approval, the Edwards device would be the first transcatheter valve sold in a U.S. market estimated to reach $1.1 billion by 2014, according to a report from Bloomberg Industries. The valve has been available in Europe since 2007.
Catheter Used
Sapien can be implanted by a catheter threaded through the leg or ribs rather than conventional chest-opening surgery.
About 300,000 people in the U.S. suffer from severe aortic stenosis, which is a narrowing of the valve, according to Edwards. Two-thirds undergo standard chest-cracking surgery to replace the valve, while the risk of surgery may be too high for the rest.
The Centers for Medicare and Medicaid Services imposes curbs on the use of drugs and devices it covers. Medicare is the U.S. health program for the elderly and disabled. Medicaid is the state-federal health program for the poor.
Edwards is expected to work with U.S. regulators to minimize the effects that limitations will have on patient access to the valve, Wald said.
The Centers for Medicare and Medicaid Services is expected to make a final decision on its payment policy for Sapien by June 26.
Medtronic Inc. (MDT), the world’s biggest maker of heart-rhythm devices, began a clinical trial in December of a competing less-invasive valve. Thomas Armitage, vice president of clinical research for the Minneapolis-based company, wrote Medicare officials Oct. 28 urging flexible coverage policies for the class of devices, known as transcatheter heart valves.
Patient Volume
In backing limits on Sapien, the two medical societies told Medicare officials that regional centers performing procedures should have an “acceptable patient volume in valvular heart disease,” a benchmark the organizations plan to establish. Edwards disagreed.
No correlation exists between outcomes and the number of patients treated and such requirements would limit the number of patients who could receive the devices, Dirksen Lehman, Edwards’s vice president of government affairs and reimbursement, wrote regulators Oct. 27.
Lawmaker’s Comments
Representative Brian Bilbray, a California Republican, also opposes patient volume restrictions and asked Medicare officials for flexibility in their coverage decision.
“In order to ensure adequate patient access, a broad range of qualified hospitals should be permitted to demonstrate their ability to deliver high-quality results,” Bilbray wrote in Oct. 26 comments to Medicare.
Edwards has vetted the first 250 sites to use Sapien, Wald wrote yesterday in a note to clients. The company had targeted 400 medical centers for the first year of the product’s use and narrowed its focus after society and regulator feedback, he said.
Edwards said it plans two days of training with doctors at a company location and will make a physician available for consultations at medical centers using Sapien until the company determines it’s being used correctly.
http://www.bloomberg.com/news/2011-11-02/edwards-backs-limits-on-heart-valve-to-assure-medicare-coverage.html?cmpid=yhoo
Fantastic. Nasdaq 10 mins ago $76.75
http://www.nasdaq.com/symbol/ew/after-hours
Edwards Wins U.S. Approval for First Less-Invasive Heart Valve
http://www.forbes.com/sites/larryhusten/2011/11/02/sapien-transcatheter-aortic-heart-valve-gains-fda-approval/?partner=yahootix
Edwards Lifesciences Corp. (EW) won approval for the first less-invasive heart valve to be marketed in the U.S. to treat patients who are too sick for chest-opening surgery.
The Food and Drug Administration cleared the device to treat patients with a narrowing of their aortic valve, the agency said today in a statement posted on its website. The Edwards device is the first so-called transcatheter valve sold in a U.S. market estimated to reach $1.3 billion by 2014, according to a report from Bloomberg Industries.
Edwards Lifesciences (EW) Could Fall Through $73.20 Support Level
Posted: Tuesday, November 01, 2011 8:13 AM EDT
Edwards Lifesciences Corp (NYSE: EW) closed Monday's trading session at $75.42. In the past year, the stock has hit a 52-week low of $61.63 and 52-week high of $91.82. Edwards Lifesciences (EW) stock has been showing support around $73.20 and resistance in the $77.68 range. Technical indicators for the stock are Bullish and S&P gives Edwards Lifesciences (EW) a positive 4 STARS (out of 5) buy rating. For a hedged play on Edwards Lifesciences (EW), look at the Jan '12 $75.00 covered call for a net debit in the $70.32 area. That is also the break-even stock price for this trade. This covered call has a duration of 81 days, provides 6.76% downside protection and an assigned return rate of 6.66% for an annualized return rate of 29.99% (for comparison purposes only). A lower-cost hedged play for Edwards Lifesciences (EW) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Edwards Lifesciences (EW) Jan '13 $45.00 call and selling the Jan '12 $75.00 call for a total debit of $28.65. The trade has a lifespan of 81 days and would provide 2.35% downside protection and an assigned return rate of 4.71% for an annualized return rate of 21% (for comparison purposes only). Edwards Lifesciences (EW) has a current trailing average dividend yield of 0%. [ABR-Seven Summits Research]
NYSE Volume Stocks to watch next week are – FMX, SFY, FR, EW, ALLY-A
Edwards Lifesciences Corp (NYSE: EW) percentage change surged 0.80%, to close at $76.06 and its overall traded volume was 726,807.00 shares during the last session with the total traded volume of 1.25M shares. EW shares were trading within the range of $75.41-$76.37 while its opening price was $75.64. The stock has a 52-week range of $61.63-$91.82. EW’s market capitalization is $8.74B and it has 114.96M outstanding shares. Edwards Lifesciences Corporation (Edwards Lifesciences) is a global player in products and technologies designed to treat advanced cardiovascular disease. The Company is focused specifically on technologies that treat structural heart disease and critically ill patients. The products and technologies provided by Edwards Lifesciences to treat advanced cardiovascular disease are categorized into four areas: Heart Valve Therapy, Critical Care, Cardiac Surgery Systems and Vascular. The Company operates in United States, Europe, Japan and others. In March 2011, the Company completed the acquisition of Embrella Cardiovascular, Inc. During year ended December 31, 2010, the Company discontinued its MONARC transcatheter mitral valve program
Edwards Lifesciences Receives CEO Cancer Gold StandardTM Accreditation
CARY, N.C.--(BUSINESS WIRE)--
Edwards Lifesciences (NYSE: EW), the global leader in the science of heart valves and hemodynamic monitoring, has received CEO Cancer Gold Standard™ accreditation, recognizing the company's commitment to reducing cancer risk by promoting healthy lifestyle choices, encouraging early detection through cancer screenings, and ensuring access to quality treatment for their own employees and their covered family members.
Christopher A. Viehbacher chairs the CEO Roundtable on Cancer, a nonprofit organization of cancer-fighting CEOs who created the CEO Cancer Gold Standard™, in collaboration with the National Cancer Institute, many of its designated cancer centers, and leading health non-profit organizations and professionals. Today, more than two million employees and family members are benefiting from the vision and leadership of employers like Edwards Lifesciences who have chosen to become Gold Standard accredited.
“This Gold Standard accreditation is an acknowledgement of the leadership of Michael Mussallem, chairman and CEO of Edwards Lifesciences, and his work on behalf of the health of employees and their families,” said Christopher A. Viehbacher, CEO of Sanofi. “CEO Cancer Gold Standard accreditation is further testament that Edwards Lifesciences' efforts to improve health begin with improving the health of their own employees.”
The CEO Cancer Gold Standard™ calls for companies to evaluate their health benefits and corporate culture and take extensive, concrete actions in five key areas of health and wellness to fight cancer in the workplace. To earn Gold Standard accreditation, a company must establish programs to reduce cancer risk by discouraging tobacco use; encouraging physical activity; promoting healthy diet and nutrition; detecting cancer at its earliest stages; and providing access to quality care, including participation in clinical trials.
About The CEO Roundtable on Cancer
The CEO Roundtable on Cancer was founded in 2001, when former President George H.W. Bush challenged a group of executives to "do something bold and venturesome about cancer within your own corporate families." The CEOs responded by creating and encouraging the widespread adoption of the CEO Cancer Gold Standard which calls for organizations to evaluate their health benefits and workplace culture and take extensive, concrete actions in five key areas of health and wellness to fight cancer in the workplace. For more information on the CEO Cancer Gold Standard™ and the web-based accreditation process and support, please visit www.CancerGoldStandard.org.
http://www.benzinga.com/pressreleases/11/10/b2025182/edwards-lifesciences-receives-ceo-cancer-gold-standardtm-accreditation#ixzz1cCMzaqZk
Earnings Scorecard: Edwards
By Zacks Investment Research on October 28, 2011
The announcement of Edwards Lifesciences’ (NYSE:EW) third quarter fiscal 2011 results as on October 19, 2011, has led analysts to revise their estimates lower for the fourth quarter and fiscal 2011.
Third Quarter Highlights
Edwards reported an adjusted EPS of 38 cents in the third quarter of fiscal 2011, a penny below the Zacks Consensus Estimate, and missing the year-ago quarter’s adjusted EPS of 43 cents. Revenues increased 18.3% to $412.7 million, exceeding the Zacks Consensus Estimate of $405 million.
Heart Valve Therapy remained the strongest segment at Edwards with an annualized growth of 22.7% to reach $246.1 million. Sales of surgical heart valves grew 7.7% to $163.5 million and transcatheter heart valves (THV) catapulted 69.1% to book $82.6 million.
The other segments of the company, namely Critical Care, Cardiac Surgery Systems and Vascular recorded sales of $126.7 million (annualized growth of 14.2%), $26.9 million (up 13.2%) and $13 million (down 4.4%), respectively.
Edwards tightened its revenue guidance for fiscal 2011 to $1.68-$1.72 billion (previous guidance of $1.66-$1.74 billion). The adjusted EPS guidance now stands at $1.97–$2.02 ($2.01–$2.07) while gross margin is still expected to be on the lower end of the 71–73% range. The company is also confident of generating $190-$200 million of free cash flow during the year.
Meanwhile, the company expects to report adjusted EPS of 57-62 cents in the fourth quarter of fiscal 2011, lower than the current Zacks Consensus Estimate of 63 cents. Edwards also confirmed that any change in the timeline of Sapien approval in the US would affect fourth quarter earnings.
For a full coverage on the earnings, read: Edwards a Penny Shy, Beats Sales
Agreement of Analysts
With guidance for the fourth quarter being lower than the general expectation, the majority of analysts have reduced their estimates for the upcoming quarter. Over the last 30 days, 13 of the 19 analysts covering the stock have lowered their estimates for the fourth quarter of fiscal 2011, with 2 revisions in the opposite direction. Maintaining the same trend, 18 analysts slashed their estimates with no upward revisions for fiscal year 2011, over the past 30 days.
Moreover, surgical heart valve sales during the quarter were affected by slower procedure volume and increased competition.
Current investor focus is on the potential US approval of Sapien THV for Cohort B patients (considered unfit for surgery). Although Edwards received a favorable recommendation from the FDA advisory panel, the panel expressed concerns about vulnerability to neurological problems, particularly stroke, in patients treated with Sapien. Any hiccup in the final approval of the device will be a major blow for the company.
To complicate the situation further, the Centers for Medicare & Medicaid Services (CMS), in September, decided to initiate a National Coverage Analysis (NCA) of transcatheter aortic valve replacement (TAVR). Any unfavorable reimbursement decision from CMS could have an adverse impact on the potential market of the valve.
The anticipated launch of Sapien in the US led to higher operating expenses, which coupled with unfavorable foreign exchange resulted in a 480 basis point (bps) year-over-year decline in operating margin to 14.5%.
Uncertainties like these have forced the analysts to adopt a cautious stand. Edwards is confident about the imminent US approval of Sapien and expects $20–$25 million of sales in the first quarter of launch and $150-$250 million estimated for the first full year. However, the company also noted that any change in the timeline of Sapien approval in the US would affect fourth quarter earnings.
Edwards also recorded robust growth in its Critical Care segment based on strong sales of advanced monitoring products, led by Flotrac systems and pressure monitoring products. Moreover, the company is on the verge of completing its in-hospital glucose monitoring program, a second generation product. However, some changes in design has been made, which will require a more extensive regulatory review in Europe. The company now expects CE Mark approval in the second half of 2012 compared with the prior forecast of a 2011 approval.
Magnitude of Estimate Revisions
The magnitude of estimate revisions has been significant for the fourth quarter, in the past 30 days. Overall, the consensus estimate for the upcoming quarter has gone down by 3 cents to 60 cents while the first-quarter estimate for fiscal 2012 remained unchanged at 61 cents. The estimate for fiscal 2011 witnessed a decline of 4 cents to $2.00 over the last 30 days.
Recommendation
Edwards recorded strong revenue growth during the reported quarter banking on robust performance of its Heart Valve Therapy products. Based on product launches in the recent past, the strong growth at Critical Care is also encouraging. Moreover, the company’s robust balance sheet enables it to target suitable acquisitions.
However, earnings during the reported quarter were affected by higher operating expenses for the anticipated launch of Sapien in the US. Moreover, any hiccup in the US regulatory pathway for Sapien will be a major dampener for the stock. In Europe, Edwards operates in a highly competitive environment with the strong presence of Medtronic (NYSE:MDT). Moreover, Boston Scientific (NYSE:BSX) is also working to enter the THV market banking on the acquisition of Sadra Medical.
We currently have a Neutral recommendation on Edwards, which corresponds to a Zacks #3 Rank (Hold) in the short term. However, any adverse decision regarding Sapien would lead us to revise our estimates for the forthcoming period. Both Medtronic and Boston Scientific carry Neutral recommendations.
About Earnings Estimate Scorecard
Len Zacks, PhD in mathematics from MIT, proved over 30 years ago that earnings estimate revisions are the most powerful force impacting stock prices. He turned this ground breaking discovery into two of the most celebrating stock rating systems in use today. The Zacks Rank for stock trading in a 1 to 3 month time horizon and the Zacks Recommendation for long-term investing (6+ months). These “Earnings Estimate Scorecard” articles help analyze the important aspects of estimate revisions for each stock after their quarterly earnings announcements. Learn more about earnings estimates and our proven stock ratings at http://www.zacks.com/education/
dealorfx. Have you entered the $SPX guess the close (for Oct 31) yet. It is the Happy Halloween Contest linked above. My birthday is halloween 1945.
dealorfx. Way To Go & Good Luck.
Edwards a Penny Shy, Beats Sales
By: Zacks Equity Research
October 20, 2011 | Comments: 0
Recommended this article (2)
BSX | MDT | EW
Edwards Lifesciences Corporation (EW - Analyst Report) has reported an adjusted EPS of 38 cents in the third quarter of fiscal 2011, a penny below the Zacks Consensus Estimate, and missing the year-ago quarter’s adjusted EPS of 43 cents. Revenues increased 18.3% to $412.7 million, exceeding the Zacks Consensus Estimate of $405 million.
Segments
Heart Valve Therapy remained the strongest segment at Edwards with an annualized growth of 22.7% to reach $246.1 million. Sales of surgical heart valves grew 7.7% to $163.5 million and transcatheter heart valves (THV) catapulted 69.1% to book $82.6 million. The other segments of the company, namely Critical Care, Cardiac Surgery Systems and Vascular recorded sales of $126.7 million (annualized growth of 14.2%), $26.9 million (up 13.2%) and $13 million (down 4.4%), respectively.
The robust growth in THV sales was primarily driven by strong procedure growth. Transapical sales, aided by the new 29 mm valve, comprised nearly half of total commercial transcatheter valve revenue. Edwards is confident about the imminent US approval of Sapien and expects $20–$25 million of sales in the first quarter of launch and $150-$250 million estimated for the first full year. For fiscal 2011, the company reiterated its THV guidance of $330–$360 million.
In the surgical heart valves category, Edwards witnessed increased competition and slower procedure growth. However, customers are shifting to the company’s premium products, which are witnessing a larger proportion of sales. Impressive sales of the company’s advanced monitoring products as well as pressure monitoring products continued to drive growth at the Critical Care segment.
Expenses
During the quarter, Edwards’ gross margin contracted 290 basis points (bps) to 69.6% primarily due to the adverse effect from foreign exchange (350 bps). At current rates, the company expects the negative impact from foreign exchange to wane in the fourth quarter and exit the year at 73%.
Higher expenses due to the anticipated launch of Sapien in the US coupled with an unfavorable foreign exchange movement led to a 24.4% rise in selling, general and administrative (SG&A) expenses to $165.5 million. Besides, SG&A expenses, as a percentage of sales, increased by 200 bps to 40.1%.
The company’s ongoing investments in the THV program led to a 17.1% rise in research and development (R&D) expenses to $61.7 million. However, R&D expenses, as a percentage of sales, remained almost flat at 15%.
Balance Sheet
Edwards exited the quarter with cash and cash equivalents of $451.1 million, up 13.9% from $396.1 million at the end of December 2010 and a debt of $175 million. Free cash flow for the quarter was $77.7 million and the company repurchased 1.4 million shares for $104.3 million.
Guidance
Michael A. Mussallem, CEO of Edwards, is confident that portfolio and geographic expansion should lead to enhanced revenue growth and higher operating margin in 2012. The company also tightened its revenue guidance for fiscal 2011 to $1.68-$1.72 billion (previous guidance of $1.66-$1.74 billion). The adjusted EPS guidance now stands at $1.97–$2.02 ($2.01–$2.07) while gross margin is still expected to be on the lower end of the 71–73% range. Edwards is also confident of generating $190-$200 million of free cash flow during the year.
Meanwhile, the company expects to report adjusted EPS of 57-62 cents in the fourth quarter of fiscal 2011, slightly lower than the current Zacks Consensus Estimate of 63 cents. Edwards also confirmed that any change in the timeline of Sapien approval in the US would affect fourth quarter earnings.
Recommendation
Edwards’ strong quarter was hinged on a robust performance of its Heart Valve Therapy products. In July 2011, Sapien received favorable recommendation from the advisory panel of the US Food and Drug Administration (FDA). However, the panel expressed concerns about vulnerability to neurological problems, particularly stroke, in patients treated with Sapien. Although the company is quite confident of the regulatory nod for Sapien, any hiccup would be a major disaster for the stock.
We also remain cautious as only in last month, Centers for Medicare & Medicaid Services (CMS) decided to initiate a National Coverage Analysis (NCA) of transcatheter aortic valve replacement (TAVR). Any unfavorable reimbursement decision from CMS could have an adverse impact on the potential market of the valve.
Moreover, in Europe, Edwards operates in a highly competitive environment with the strong presence of Medtronic (MDT - Analyst Report). Moreover, Boston Scientific (BSX - Analyst Report) is also working to enter the THV market banking on the acquisition of Sadra Medical.
We currently have a Neutral recommendation on Edwards, which corresponds to a Zacks #3 Rank (Hold) in the short term. Both Medtronic and Boston Scientific carry Neutral recommendations.
dealorfx. Just got back online (u-verse failure). Haven't even seen a stream from today yet.
I saw a few High-Minded Co Officials at Eli Lilly. And then the actual genius science directors in the background.
dealorfx. Yes it is, humbling. Especially to a High Minded Company official.
Strong conference call. Will look at chart tomorrow.
MomentsAgo: Edwards Lifesciences Reports Strong Third Quarter Sales.
- Transcatheter Heart Valve Sales of $83 Million
- U.S. SAPIEN Launch Preparations Complete
- Favorable Tax Ruling Results in $7 Million Special Gain
Third quarter net sales increased 18.3 percent to $412.7 million compared to the same period last year. Underlying(1) sales growth was 10.6 percent.
INCLUDES non-GAAP Financials:
http://www.edwards.com/newsroom/Pages/NR20111019.aspx
i agree and this is a good stock, trades well and the company makes products that save lives
EW
I am happy for the profit I were able to take, but wish I had made more profit, the hind sight is 20 20 my father say, more money to be made here, I am not in marriage with any stock, but this one is quality never the less.
the dr
i got my eye on a buy in price, i wasnt sure it was going to tickle the 60's again, you may be onto something.
EW
Followers
|
6
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
284
|
Created
|
06/09/11
|
Type
|
Free
|
Moderators |
Pericardial Heart Valves | Heart Valve Repair | Cardiac Cannula |
Other Tissue Valves | Minimal Incision Valve Surgery |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |