This medical company beat estimates by five cents last quarter, seven analysts have recently raised their EPS estimates, and two have increased their price targets (JP Morgan to $98 and Credit Suisse to $88).
Edward Life Sciences (EW)
From Shortex Market Letter
Edward Life Sciences (EW)
52 week high 83.44, 52 week low 61.38
Market Cap: $17.39, EPS: 2.11, P/E: 38.16
Edward Life Sciences (EW) is the provider of technology for treatment of heart disease and critically ill patients and a leader in trans-catheter heart valves for treatment of advanced cardiovascular disorders.
The company offers: trans-catheter aortic heart valves, surgical heart valve products and minimally invasive aortic and tissue heart valves. The critical care products include: hemodynamic monitoring systems and pulmonary artery catheters.
EW affirmed its previous guidance for 2016: revenue @ $2.5B-$2.75B, expected growth at 7%-11%, and earnings of $4.60-$4.80/shr (excluding the impact of stock split of 2-1).
The company’s flagship trans-catheter aortic valve replacement (TAVR) is estimated to grow @ 10% to 18% to $1.2B-$1.4B. Raising guidance of overall TAVR market to $5B/yr through 2021. Current quarter earnings increased by 24.8% from $94.60M or $1.13/shr to $11.800M or $1.17/shr.
EW’s guidance for the current year increases per share earnings from $4.37/shr to $4.49/shr. The gross profit margin @ 79.17%. The net profit margin @ 19.18%. The debt-to-equity ratio @ 0.25 below industry’s average.
Technical pictures: ascending pattern since Sept 2015 (66.5-70.50) to (71.50-77.00) to (71.50-76.00) to (76.50-79.50) to (75.50-80.50) to (77.00-83.44). Challenging upper-head resistance @ (83-84) in the offing.
RECOMMENDATION:
BUYING RANGE: 77-83
NEAR TERM OBJECTIVE: 93
INTER MED OBJECTIVE: 107
STOP LOSS: 73
(1) Price as of closing 12/17/15
(2) Split Price (2-1) effective 12/11/15
Joseph Parnes, Shortex Market Letter, www.shortex.com, 800-877-6555, December 17, 2015