Edwards Lifesciences 2Q net income rises 39 pct

Edwards Lifesciences 2nd-qtr net income rises 39 percent; Sapien valve sales rise 25 percent

Associated Press

IRVINE, Calif. (AP) -- Heart device maker Edwards Lifesciences Corp. said Thursday its net income rose 39 percent in the second quarter as sales of its Sapien replacement valves improved.

Edwards said revenue from Sapien climbed 25 percent to $182.1 million after the valve received a broader marketing clearance last fall. Revenue from other heart valves also edged higher.

Sapien is used to replace diseased heart valves. It is designed to be guided to the heart through an artery in the leg. The diseased valves are normally are removed through open heart surgery, which is a more complicated procedure. The Food and Drug Administration approved Sapien in November 2011 for patients who couldn't have open heart surgery, and in October it expanded that approval to cover patients for whom surgery was considered high-risk.

Edwards said its net income improved to $94.1 million, or 82 cents per share, from $67.8 million, or 57 cents per share. Revenue grew 7 percent, to $517.2 million from $482 million.

Analysts expected net income of 76 cents per share and $514.3 million in revenue, according to FactSet.

The company said revenue from surgical heart valves rose 2 percent to $204.3 million and revenue from its critical care business fell 4 percent to $130.8 million.

Edwards maintained its full-year forecasts, saying it anticipates adjusted net income of $3 to $3.10 per share on revenue of $2 billion to $2.1 billion. That includes net income of 63 to 67 cents per share and $475 million to $505 million in revenue in the third quarter.

Analysts expect Edwards to report net income of $3.06 per share and $2.05 billion in revenue for the full year, and a profit of 72 cents per share and $494.1 million in revenue for the third quarter.

Shares of Edwards Lifesciences picked up 82 cents, or 1.2 percent, to $71.50 in aftermarket trading following the release of the earnings report..

The stock has fallen 14.7 percent since April 23, when the company reported disappointing first-quarter results and cut its annual guidance. Since Oct. 8, when the company gave a weak third-quarter outlook, its shares have lost 34.2 percent of their value.

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