On April 23, cardiovascular disease treatment company Edwards Lifesciences
- Revenue was up only slightly, as the company has shifted its business focus entirely to minimally invasive technologies in heart surgery.
- In the quarter, Edwards Lifesciences repurchased approximately 500,000 shares of common stock for $24.8 million.
- The company revised its 2007 sales guidance to be between $1.07 billion and $1.11 billion.
- Second-quarter 2007 diluted EPS is expected to be between $0.56 and $0.58, while full-year EPS is expected to be between $2.23 and $2.31 per diluted share. Edwards is trading at 21 times this year's expected earnings.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$264.1 |
$256.7 |
2.9% |
|
Net Profit |
$33.2 |
$45.9 |
(27.7%) |
|
EPS |
$0.54 |
$0.73 |
(26.0%) |
|
Diluted Shares |
63.5 |
64.6 |
(1.7%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
64.7% |
63.7% |
1.0 |
|
Operating Margin |
16.5% |
17.2% |
(0.7) |
|
Net Margin |
12.6% |
17.9% |
(5.3) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$180.2 |
$189.2 |
(4.8%) |
|
Accounts Rec. |
$129.3 |
$122.8 |
5.3% |
|
Inventory |
$141.5 |
$135.0 |
4.8% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$179.4 |
$196.5 |
(8.7%) |
|
Long-Term Debt |
$224.5 |
$288.8 |
(22.3%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$36.1 |
$61.0 |
(40.8%) |
|
Capital Expenditures |
$13.6 |
$8.0 |
70.0% |
|
Free Cash Flow |
$22.5 |
$53.0 |
(57.5%) |
Free cash flow is a Fool's best friend.
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