Edwards Lifesciences Corp. said Monday that its first-quarter profit declined on higher costs.
The Irvine heart valve maker said its earnings dropped 28% to $33.2 million in the first quarter, compared to a year ago. Sales were up 3% to $264.1 million.
Analysts expected Edwards to earn $32.4 million on sales of $269.3 million.
The profit decline stemmed from rising costs. Edwards said in a release that selling, general and administrative expenses rose 7% to $98.6 million. Research and development costs were up 6% to $28.8 million.
Edwards also said it spent $24.8 million during the quarter to repurchase 500,000 shares of its common stock.
The company gave guidance for the second quarter and 2007.
The device maker said it expected to earn $32.4 million to $33.6 million in the second quarter, in line with Wall Street’s average forecast of $34.1 million.
For the year, Edwards said it now expects to earn between $129.1 million and $133.7 million. Sales are expected to come in at $1.07 billion to $1.11 billion. The company had previously said it expected to earn $132 million to $137.2 million on sales of $1.07 billion to $1.12 billion.
Wall Street’s looking for earnings of $134.9 million and revenue of $1.1 billion this year.
Separately, Edwards said the Food and Drug Administration formally notified it that its response to a February warning letter about conditions at its Irvine plant adequately addressed its concerns.
Regulators won’t defer approving pending pre-market submissions or export certificates for products made at the plant.
