Edwards Shares Plummet on Earnings MissWednesday, April 24, 2013
Irvine-based Edwards Lifesciences Corp.’s shares fell more than 20% today, a day after it reported first-quarter earnings and sales that missed estimates and it lowered its full-year outlook.
The heart valve maker’s shares were down 23% to a market value of $7.3 billion in midday New York trading.
Edwards’ fall came after it reported its financial results on Tuesday after the market closed.
The company’s first-quarter profit, excluding one-time items, came in at $83.9 million, below an average analyst estimate of $88.5 million.
Edwards did record a special gain of $83.6 million from a patent lawsuit with Minneapolis-based rival Medtronic Inc., bringing its net income to $144.9 million, up 122% from a year ago.
Analysts’ estimates generally exclude gains or charges.
Edwards’ revenue was up 8% to $496.7 million, but analysts had expected $518.6 million.
The company also lowered its 2013 outlook.
Edwards could see a full-year profit of $349.5 million to $361.2 million, down from a previous range of $374 million to $385.6 million.
Analysts have expected Edwards to post a full-year profit of $381 million.
The company now expects 2013 revenue of $2 billion to $2.1 billion. Wall Street estimates Edwards will have $2.13 billion in full-year sales.
Edwards lowered its guidance “primarily to reflect a slower start to the year and an updated foreign exchange impact,” Chief Executive Michael Mussallem said in a statement.