NEW YORK (AP) -- Edwards Lifesciences' stock rose more than 4 percent on Tuesday after the heart device maker maintained its 2012 forecast and gave a 2013 adjusted earnings outlook above Wall Street's view.
THE SPARK: Edwards Lifesciences Corp. still expects 2012 adjusted earnings of $2.54 to $2.58 per share and revenue in a range of $2.1 billion to $2.2 billion. For 2013, the company anticipates adjusted earnings between $3.21 and $3.31 per share and a gross profit margin of 74 percent to 76 percent. Gross margin, a key gauge of performance, is the amount of each dollar in revenue a company actually keeps.
Analysts surveyed by FactSet, on average, foresee 2012 earnings of $2.56 per share on revenue of $1.89 billion. For 2013, Wall Street projects earnings of $3.19 per share.
THE ANALYSIS: Raj Denhoy of Jefferies said in a client note that the 2013 guidance looks very good. He provided a 2013 earnings estimate of $3.31 per share.
Denhoy maintained a "Buy" rating and a price target of $100.
SHARE ACTION: Shares of Edwards Lifesciences Corp. gained $3.88, or 4.5 percent, to $90.40 in midday trading. The stock has traded in a 52-week range of $62.69 to $110.79. For the year to date, the shares are up 27 percent.