Stock in News Spotlight: Edwards Lifesciences Corporation (NYSE: EW)

 Shares of Edwards Lifesciences Corporation (NYSE: EW) were transacted with a volume of 2208197 shares in last trading period as compared to its average volume of 1364.39K shares over last three months period. The stock price scored -1.01% and valued at $168.7.

Edwards Lifesciences Corporation a USA based Company, belongs to Healthcare sector and Medical Appliances & Equipment industry. Shares of the company returned -1.14% during the last five trading days and it returned 13.04% in past 30 trading days. It changed 18.34% over recent three months. The stock has changed 33.28% in one year period and YTD Performance clocked at 10.14%.

Edwards Lifesciences Corporation (NYSE: EW) announced financial results for the quarter ended December 31, 2018.

Fourth Quarter and Full Year Highlights

  • Q4 sales grew 10.0%; full year 2018 sales grew 8.4%, underlying1 sales grew 10.0%
  • Q4 THVT sales grew 14.1%; full year 2018 sales grew 12.8%, underlying sales grew 12.2%
  • Full year 2018 EPS grew 25%; adjusted EPS grew 24%
  • Reconfirmed 2019 total company adjusted sales and EPS guidance ranges
  • Global litigation settlement relating to transcatheter therapies
  • SAPIEN 3 Ultra approved in Europe and U.S.

Fourth Quarter 2018 Results

Sales for the quarter ended December 31, 2018 were $978 million, or $983 million on an adjusted basis, both up 10 percent over the prior year.  Diluted earnings per share for the quarter was $0.03 per share, while adjusted earnings per share grew 25 percent to $1.17.

Additional Financial Results

For the quarter, the company’s adjusted gross profit margin was 76.1 percent, compared to 73.8 percent in the same period last year. This improvement reflects favorable foreign exchange rates, the benefit of a more profitable product mix, and the absence of last year’s expenses associated with the closure of a manufacturing plant in Switzerland. These benefits were partially offset by continued investments in manufacturing capacity.

Selling, general and administrative expenses increased 6 percent to $288 million for the quarter, driven primarily by TAVR therapy adoption initiatives, partially offset by lower reported expenses outside the U.S. due to the stronger U.S. dollar.

Research and development investments for the fourth quarter increased 11 percent to $163 million, or 17 percent of sales. This increase was primarily the result of continued investments in transcatheter structural heart programs, including spending on clinical trials.

The company reported a tax benefit to earnings due to deductions resulting from its litigation settlement and intangible asset impairment.  Excluding the impact of special items, the tax rate would have been 17 percent.

Free cash flow for the fourth quarter was $235 million, defined as cash flow from operating activities of $293 million, less capital spending of $58 million.  For the full year 2018, adjusted free cash flow was $786 million.

Cash, cash equivalents and short-term investments totaled $956 million at December 31, 2018.  Total debt was $594 million.

The price moved ahead 5.37% from the mean of 20 days, 7.47% from 50 and separated 13.99% from 200 days average price. Its price volatility for a month is at 2.70% and for a week, volatility remained at 2.61%. It beta stands at 0.93. Company’s price to sales ratio for last 12 months was 9.7 while its price to book ratio for the most recent quarter was 10.49. Its Market Cap valued at $35258.3M.

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