Edwards Lifesciences Revenue Miss

It swings to profit.
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Heart-valve manufacturer

Edwards Lifesciences

(EW) - Get Report

said it swung to a profit in the third quarter, helped by strong operating performance and sales growth from critical care and vascular products.

The Irvine, Calif.-based company earned $27.8 million, or 45 cents a share, in the quarter, compared with a loss of $4.4 million, or 7 cents a share, a year ago. Adjusted for items, earnings were 53 cents a share in the most recent quarter. Analysts polled by Thomson First Call were expecting earnings of 47 cents a share in the most recent quarter.

Third-quarter revenue rose 2.7% to $247.4 million as against analysts' expectation of $255.07 million.

The company expects to earn 52 cents to 54 cents a share in the fourth quarter, including 5 cents to 6 cents a share of options expenses. For the full year, the company raised its guidance earnings of $2.24 to $2.26 a share, and $2.03 to $2.05 a share excluding only special items, on revenue of low end of its previously estimated range of $1.04 billion to $1.06 billion. Analysts are expecting earnings of 54 cents a share for the fourth quarter and $2.04 a share for the full year, on revenue of $1.05 billion.

Gross profit margins rose 140 basis points to 64.7%.

"This quarter's results were highlighted by strong profitability and the increasing contribution from newer growth drivers, as evidenced by the continued traction of our recently introduced Critical Care and Vascular products," said the company. "Additionally, we are continuing to make important progress in our Ascendra and percutaneous transcatheter heart valve programs."

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