Edwards Lifesciences Corp (EW) has reported a 12.65 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $158.50 million, or $0.73 a share in the quarter, compared with $140.70 million, or $0.64 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $163.60 million, or $0.75 a share compared with $140.70 million or $0.64 a share, a year ago.
Revenue during the quarter grew 14.39 percent to $767.70 million from $671.10 million in the previous year period. Gross margin for the quarter contracted 156 basis points over the previous year period to 72.23 percent. Total expenses were 73.79 percent of quarterly revenues, down from 74.46 percent for the same period last year. This has led to an improvement of 67 basis points in operating margin to 26.21 percent.
Operating income for the quarter was $201.20 million, compared with $171.40 million in the previous year period.
"We are pleased to report strong fourth quarter results, which contributed to another successful year for Edwards, as we strengthened our financial performance and product leadership positions," said Michael A. Mussallem, chairman and chief executive officer. "We ended the quarter with underlying sales growth of 15 percent, driven by strong adoption of transcatheter aortic valve replacement (TAVR) therapy, and finished the year with global sales of nearly $3 billion. And, I’m proud to report we invested aggressively in 2016 to bring innovative medical technologies to more patients and drive future growth."
For financial year 2017, Edwards Lifesciences Corp projects revenue to be in the range of $3,000 million to $3,400 million. It forecasts diluted earnings per share to be in the range of $3.30 to $3.45 on adjusted basis for the same period.
For the first-quarter, Edwards Lifesciences Corp projects revenue to be in the range of $760 million to $800 million. It forecasts diluted earnings per share to be in the range of $0.79 to $0.89 on an adjusted basis for the same period.
Working capital increases
Edwards Lifesciences Corp has recorded an increase in the working capital over the last year. It stood at $1,707.50 million as at Dec. 31, 2016, up 8.64 percent or $135.80 million from $1,571.70 million on Dec. 31, 2015. Current ratio was at 4.21 as on Dec. 31, 2016, down from 4.30 on Dec. 31, 2015.
Debt increases substantially
Edwards Lifesciences Corp has witnessed an increase in total debt over the last one year. It stood at $822.30 million as on Dec. 31, 2016, up 37.76 percent or $225.40 million from $596.90 million on Dec. 31, 2015. Total debt was 18.23 percent of total assets as on Dec. 31, 2016, compared with 14.70 percent on Dec. 31, 2015. Debt to equity ratio was at 0.31 as on Dec. 31, 2016, up from 0.24 as on Dec. 31, 2015. Interest coverage ratio improved to 134.13 for the quarter from 65.92 for the same period last year.
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