Edwards Lifesciences (EW) - Bear of the Day

By Zacks | November 01, 2012 AAA

Edwards Lifesciences (EW) reported EPS of $0.58 in the third quarter of 2012, surpassing the Zacks Consensus Estimate by $0.02. Sales increased 8.5% to $447.9 million, in line with the preliminary result but lagged the original guidance of $465-$485 million. This was primarily due to lower-than-expected THV sales due to economic uncertainties in Europe, coverage issues for certain inoperable patients in US and later-than expected approval of Sapien in high-risk patients.



Given these headwinds, the company lowered its outlook for 2012. We prefer to avoid the stock and accordingly downgrade it to Underperform.



Edwards current trailing 12-month earnings multiple is 36.3. The stock is currently trading at 27.1x the 2013 EPS estimate of $3.21. Our target price is based on 24.6x our 2013 EPS estimate.



comments powered by Disqus
Related Analysis
  1. ADP Report May Not Be Enough - Ahead of Wall Street
    Stock Analysis

    ADP Report May Not Be Enough - Ahead of Wall Street

  2. Technical Look At eBay Inc
    Stock Analysis

    Technical Look At eBay Inc

  3. Priming the Pump for Q3 Earnings - Ahead of Wall Street
    Stock Analysis

    Priming the Pump for Q3 Earnings - Ahead of Wall Street

  4. Traders Have Seen This Movie Before
    Stock Analysis

    Traders Have Seen This Movie Before

  5. Bear of the Day: Stage Stores (SSI) - Bear of the Day
    Stock Analysis

    Bear of the Day: Stage Stores (SSI) - Bear of the Day

Trading Center