The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Edwards Lifesciences beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Margins increased across the board.
Edwards Lifesciences reported revenue of $510.5 million. The 21 analysts polled by S&P Capital IQ expected net sales of $500.1 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $430.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.90. The 24 earnings estimates compiled by S&P Capital IQ forecast $0.77 per share. GAAP EPS of $0.77 for Q4 were 45% higher than the prior-year quarter's $0.53 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.4%, 320 basis points better than the prior-year quarter. Operating margin was 25.8%, 570 basis points better than the prior-year quarter. Net margin was 17.8%, 310 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $518.6 million. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $2.14 billion. The average EPS estimate is $3.26.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 145 members out of 196 rating the stock outperform, and 51 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Edwards Lifesciences a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Edwards Lifesciences is outperform, with an average price target of $95.05.
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