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Edwards Profit Falls on Charges

Irvine-based Edwards Lifesciences Corp. reported a fourth-quarter profit before charges Tuesday that beat Wall Street’s expectations although it was basically flat from the year-ago period.

Edwards earned $33.7 million in the quarter, excluding charges, up about 2% from 2006’s fourth quarter. Revenue was up 10.3% to $293 million.

Analysts expected Edwards to make $30.1 million on sales of $280.1 million in the quarter.

Edwards’ net profit after charges was down 24% to $15.8 million.

The heart valve maker, in a statement, said the net profit decline came from charges related to the December sale of its LifeStent system for treating diseased blood vessels to Murray Hill, N.J.-based C.R. Bard Inc. for $140 million, and the discontinuation of an employee pension plan.


For 2007, Edwards posted a profit of $113 million, down 13% from 2006. Sales were up 5.2% to $1.1 billion.

Wall Street expected Edwards to make $118.5 million on sales of $1.08 billion in 2007.

Edwards also gave earnings guidance for the current quarter and full-year profit and sales guidance.

For the current quarter, the company estimates it will post profits coming in at $26.7 million and $28.9 million, below analysts’ expectations of $30.1 million.

For 2008, Edwards said it expects to make $131.6 million to $136.1 million on sales of $1.2 billion. Wall Street predicts Edwards will make $132.1 million on sales of $1.17 billion.

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