Bengaluru: Edwards Lifesciences beat analysts’ estimate for fourth-quarter profit on Tuesday, helped by strong demand for its artificial heart valves and other medical devices.
Investors remain bullish on medical device makers, expecting them to benefit from still-high demand for surgical procedures, especially from older adults.
Last week, larger peer Boston Scientific forecast its annual profit above Wall Street estimate, banking on steady demand for heart devices.
Edwards bought heart device makers JenaValve Technology and Endotronix in deals valued at about $1.2 billion in July, as it looks to become a pure-play structural heart company.
The company’s lead product, transcatheter aortic valve replacement (TAVR) device, is used for minimally invasive heart surgeries.
Sales from the TAVR unit rose nearly 6per cent to $1.04 billion in the quarter ended December 31, compared with analysts’ average estimate of $1.01 billion, according to LSEG data.
Edwards has also been facing stiff competition for its TAVR devices from Abbott, Boston Scientific and Medtronic .
The company expects its first-quarter adjusted profit to be between 58 cents and 64 cents, compared with the estimate of 59 cents.
On an adjusted basis, California-based Edwards earned 59 cents per share for the fourth quarter, beating the estimate of 55 cents.
Its revenue rose 9per cent over the year earlier to $1.39 billion.
The company also reiterated its adjusted profit forecast for 2025 at $2.40 to $2.50 per share. (Reporting by Christy Santhosh in Bengaluru; Editing by Shilpi Majumdar)
