Edwards Profit Edges Up; Shares Fall on Sapien ConcernsThursday, July 21, 2011
Irvine-based Edwards Lifesciences Corp. on Thursday posted a slightly higher second-quarter profit as growing sales of its heart valves offset higher costs.
Edwards also offered a conservative outlook for the current quarter. The company could see a profit of $44.4 million to $46.8 million, compared to analysts’ recent expectations of $51.6 million.
On Wednesday, a Food and Drug Administration panel backed Edwards’ less-invasive Sapien heart valve for patients too sick for major surgery. But that panel also brought up concerns about patients’ increased risk for stroke during the hearing.
Edwards’ shares closed down 6% in Thursday trading, with a market value of about $9.5 billion.
The device maker's financial results came out after Thursday's close of trading.
For the second quarter, Edwards’ profit was $58.1 million, up 1% from a year earlier.
Wall Street had projected a $60 million profit.
Second-quarter revenue came in at $431.2 million, up 18% from 2010’s second quarter and above analysts’ estimates of $424.6 million.
Heart valve sales grew 22% to $263.1 million. Surgical heart valve sales grew 10% to $177 million.
Sapien accounted for $85.3 million in sales, a 60% increase over last year’s second quarter.
Edwards’ research and development expense rose 28% on more investment in clinical studies and heart valve development programs.