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When I was a young plant engineer in Keasbey, NJ all of the old time managers used to go to the Liberty Tavern and get all hammer head sharked at lunch. Then they would come back to the plant and the guys who were visiting would always call me Ed. Now I have no idea why they called me “Ed”. As a matter of fact, there are many famous Eds. I wasn’t one of them:
Eddie Haskel
Eddie Munster
Eddie Van Halen
Eddie Murphy
Ed McMahon
Mister Ed
Eddie Bauer
Eddie Guerrero
Eddie Rabbitt
Eddie Money
Ed Sullivan
Ed Norton
Ed O'Neill
Eddie Albert
But today my favorite Ed is Edwards Lifesciences Corporation. Why? Because it’s going to make me money that’s why.
On Friday, I bought EW at 129.94. I will sell it in 4 – 6 weeks at 149.62. Here’s why I like EW:
Look at this crazy good chart:
The stock is up 95% in the last 12 months and its PE is only 18. That’s awesome. Everyone loves this stock and it’s still cheap. There is lots more to love. Edwards Lifesciences Corp is the biggest maker of heart valves that are inserted without cracking open the chest.
Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. The company offers surgical heart valve therapy products, such as tissue heart valves and repair products, which are used to replace or repair a patient’s diseased or defective heart valve; and produces pericardial valves from biologically inert animal tissue. Its surgical heart valve therapy products include Carpentier-Edwards PERIMOUNT pericardial valve that comprise PERIMOUNT Magna Ease valves for aortic and mitral replacement; ThruPort systems that enable minimal incision valve surgery; and protection cannulae that is used during cardiac surgery in venous drainage, aortic perfusion, venting, and cardioplegia delivery. The company also provides transcatheter heart valves portfolio that includes technologies designed to treat heart valve disease using catheter-based approaches, as well as critical care products, such as hemodynamic monitoring systems to measure a patient’s heart function in surgical and intensive care settings; Swan-Ganz line of pulmonary artery and PreSep continuous venous oximetry catheters for measuring central venous oxygen saturation; VolumeView sensor-catheters; FloTrac continuous cardiac output monitoring system, a minimally invasive cardiac monitoring technology for fluid optimization; and EV1000 clinical monitoring platform, which displays a patient's physiologic status. Its critical care products also include disposable pressure monitoring devices and closed blood sampling systems to help protect patients and clinicians from the risk of infection; and peripheral vascular products used to treat endolumenal occlusive disease, such as balloon-tipped, catheter-based embolectomy products, surgical clips, and clamps. The company distributes its products through direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1999 and is headquartered in Irvine, California.
You know when you drink to much and you wake up the next day and your heart is going wham wham wham wham. Well, it’s not like you need Edwards Life Sciences. In reality you’re just hung over and your heart is Harley Racing. Remember the King Harley Race. Well, your heart is the King. On the other hand there are wicked old people who need some rotor rooter to keep their hearts going great. That’s where EW comes in. They have a new wave valve that can be replaced easily. Instead of taking your car to the garage, it’s like getting a Jiffy Lube.
The company is driven by a passion to help patients. Edwards is the Global Leader in the Science of Heart Valves and Hemodynamic Monitoring. The company partners with clinicians to develop innovative technologies in the areas of structural heart disease and critical care monitoring that enable them to save and enhance lives.
There is improving regulatory climate in U.S. and Japan for breakthrough technologies
Edwards-specific sector trends sector trends:
Transcatheter heart valves: fast becoming standard of care for higher risk patients. Edwards is well positioned to continue strengthening its global leadership by providing innovative, best-in-class therapies. Newer devices with additional sizes, improving economics, and increasing awareness of this compelling alternative to traditional therapy, are expected to broaden the availability of transcatheter technology and double sales of global TAVR procedures to more than $3 billion in 2019. Edwards expects to generate THV sales of $1.0 billion to $1.1 billion in 2015, representing a 15 to 25 percent underlying growth rate, even as competition intensifies.
Surgical Heart Valve Therapy – Substantial investments in new technologies coupled with an aging global population are expected to drive continued growth of Edwards' leading surgical heart valve platform over the longer term, even as the adoption of transcatheter heart valves is expected to moderate its growth rate.
Edwards expects to generate Surgical Heart Valve Therapy sales, which includes surgical heart valves and cardiac surgery products, of $780 million to $820 million in 2015, representing a 1 to 3 percent underlying growth rate. Underlying sales of surgical heart valve products alone are expected to grow 3 to 5 percent.
Critical Care – In 2015, Edwards expects to continue building upon its global leadership in hemodynamic monitoring by expanding the benefits of Enhanced Surgical Recovery (ESR) to a broader patient population with its ClearSight noninvasive platform. ESR represents an underpenetrated opportunity to help clinicians make more informed fluid management decisions for their patients, which can result in clinical and economic benefits.
Edwards expects to generate Critical Care sales of $520 million to $570 million in 2015, representing a 2 to 4 percent underlying growth rate.
The firm is a leader in its core business of tissue heart valves, with more than 60% of the market. The demographics are in their favor. An increasing aging population means more problems with heart valves and heart failure with more frequency.
The gross margins increased from 47% in 2000 to 75% in 2013. That’s right…75%.
Return on Assets (ttm): 9.64%
Return on Equity (ttm): 44.79%
The company ROE is higher than the industry median. An ROE of 15% is considered attractive. EW blows this number away. The trailing P/E of 18x, means that EW is a bargain compared to the average of of 80x for the industry. This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, EW has beaten estimates by at least 10% in both cases.
In its most recent quarterly announcement, Edwards' earnings rose 14% over the year-earlier quarter to 80 cents a share, beating ANAL-ysts' consensus by 8 cents. Sales increased 23% to $607 million, more than $60 million above the street's average estimate.
Net income for the same period a year earlier was $76.8 million, or $0.68 per diluted share, and non-GAAP net income was $79.5 million, or $0.70 per diluted share.
For the nine months ended September 30, 2014, the company recorded net income of $701.9 million, or $6.49 per diluted share, compared to $314.0 million, or $2.74 per diluted share, for the same period in 2013. Net income growth for the nine months was 123.5 percent and diluted earnings per share increased 136.9 percent over last year, or 6.1 percent excluding special items in both periods.
Net sales for the first nine months of 2014 increased 12.9 percent to $1.7 billion. Sales growth was 12.4 percent on an underlying basis.
U.S. and international segment sales for the first nine months of 2014 were $760.7 million and $944.2 million, respectively.
During the first nine months of 2014, the company repurchased approximately 4.4 million shares of common stock for $300.7 million, substantially all of which was completed in the first quarter.
The company now expects full year 2014 total sales to exceed the high end of its previous $2.05 billion to $2.25 billion range. The company also raised its guidance for full year 2014 diluted earnings per share, excluding special items, to a range of $3.33 to $3.39. For the fourth quarter of 2014, the company projects total sales to be between $575 million and $615 million, and diluted earnings per share, excluding special items, to be between $0.89 and $0.95.
The past and present look great, but what of the future? ANAL-ysts have projected earnings of $4.03/share in 2015 on revenues of $2.43 billion. That’s so funny I almost had a heart attack. $$$MR. MARKET$$$ knows that earnings will actually be $5.07/share on revenues of $2.98 billion. This 26% earnings beat ($5.07 vs. $4.03) would propel the stock price to 163, which is well past my sell price.
Here’s what the bossman had to say. This guy has a lot of heart:
"We expect 2015 to be another year of attractive organic sales growth for Edwards Lifesciences as we continue executing our focused innovation strategy to provide breakthrough therapies for patients in need," said Michael A. Mussallem, chairman and CEO. "Sales of our market-leading technologies, together with greater operating leverage, position us for strong financial performance."
"Although competition is intensifying, we believe our new products position us well to drive solid organic sales growth and help clinicians address critical unmet patient needs," said Mussallem. "We are encouraged that new therapies supported by compelling evidence are being adopted even in this challenging healthcare climate."
"In Europe and the U.S., transcatheter valve procedure growth was strong this quarter and exceeded our expectations," said Mussallem. "Our new product launches have strengthened our leadership position, and we are pleased that greater numbers of patients are benefiting from transcatheter heart valve therapy. The launches of SAPIEN 3 in Europe and SAPIEN XT in the U.S. are largely complete, and feedback from clinicians on these new valves continues to be very positive. We believe current market growth rates are not sustainable and expect competitive activity will increase."
"We are pleased with the results in all product groups and regions this quarter, highlighted by transcatheter heart valves that exceeded our expectations and drove very strong sales performance" The strong year-to-date results reinforce our conviction in our focused innovation strategy and its impact on unmet patient needs."
Let’s get to the heart of the matter. This one is easy money. See you at 149.62
I am HUGE!
$$$MR. MARKET$$$
Eddie Haskel
Eddie Munster
Eddie Van Halen
Eddie Murphy
Ed McMahon
Mister Ed
Eddie Bauer
Eddie Guerrero
Eddie Rabbitt
Eddie Money
Ed Sullivan
Ed Norton
Ed O'Neill
Eddie Albert
But today my favorite Ed is Edwards Lifesciences Corporation. Why? Because it’s going to make me money that’s why.
On Friday, I bought EW at 129.94. I will sell it in 4 – 6 weeks at 149.62. Here’s why I like EW:
Look at this crazy good chart:
The stock is up 95% in the last 12 months and its PE is only 18. That’s awesome. Everyone loves this stock and it’s still cheap. There is lots more to love. Edwards Lifesciences Corp is the biggest maker of heart valves that are inserted without cracking open the chest.
Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. The company offers surgical heart valve therapy products, such as tissue heart valves and repair products, which are used to replace or repair a patient’s diseased or defective heart valve; and produces pericardial valves from biologically inert animal tissue. Its surgical heart valve therapy products include Carpentier-Edwards PERIMOUNT pericardial valve that comprise PERIMOUNT Magna Ease valves for aortic and mitral replacement; ThruPort systems that enable minimal incision valve surgery; and protection cannulae that is used during cardiac surgery in venous drainage, aortic perfusion, venting, and cardioplegia delivery. The company also provides transcatheter heart valves portfolio that includes technologies designed to treat heart valve disease using catheter-based approaches, as well as critical care products, such as hemodynamic monitoring systems to measure a patient’s heart function in surgical and intensive care settings; Swan-Ganz line of pulmonary artery and PreSep continuous venous oximetry catheters for measuring central venous oxygen saturation; VolumeView sensor-catheters; FloTrac continuous cardiac output monitoring system, a minimally invasive cardiac monitoring technology for fluid optimization; and EV1000 clinical monitoring platform, which displays a patient's physiologic status. Its critical care products also include disposable pressure monitoring devices and closed blood sampling systems to help protect patients and clinicians from the risk of infection; and peripheral vascular products used to treat endolumenal occlusive disease, such as balloon-tipped, catheter-based embolectomy products, surgical clips, and clamps. The company distributes its products through direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1999 and is headquartered in Irvine, California.
You know when you drink to much and you wake up the next day and your heart is going wham wham wham wham. Well, it’s not like you need Edwards Life Sciences. In reality you’re just hung over and your heart is Harley Racing. Remember the King Harley Race. Well, your heart is the King. On the other hand there are wicked old people who need some rotor rooter to keep their hearts going great. That’s where EW comes in. They have a new wave valve that can be replaced easily. Instead of taking your car to the garage, it’s like getting a Jiffy Lube.
The company is driven by a passion to help patients. Edwards is the Global Leader in the Science of Heart Valves and Hemodynamic Monitoring. The company partners with clinicians to develop innovative technologies in the areas of structural heart disease and critical care monitoring that enable them to save and enhance lives.
There is improving regulatory climate in U.S. and Japan for breakthrough technologies
Edwards-specific sector trends sector trends:
Transcatheter heart valves: fast becoming standard of care for higher risk patients. Edwards is well positioned to continue strengthening its global leadership by providing innovative, best-in-class therapies. Newer devices with additional sizes, improving economics, and increasing awareness of this compelling alternative to traditional therapy, are expected to broaden the availability of transcatheter technology and double sales of global TAVR procedures to more than $3 billion in 2019. Edwards expects to generate THV sales of $1.0 billion to $1.1 billion in 2015, representing a 15 to 25 percent underlying growth rate, even as competition intensifies.
Surgical Heart Valve Therapy – Substantial investments in new technologies coupled with an aging global population are expected to drive continued growth of Edwards' leading surgical heart valve platform over the longer term, even as the adoption of transcatheter heart valves is expected to moderate its growth rate.
Edwards expects to generate Surgical Heart Valve Therapy sales, which includes surgical heart valves and cardiac surgery products, of $780 million to $820 million in 2015, representing a 1 to 3 percent underlying growth rate. Underlying sales of surgical heart valve products alone are expected to grow 3 to 5 percent.
Critical Care – In 2015, Edwards expects to continue building upon its global leadership in hemodynamic monitoring by expanding the benefits of Enhanced Surgical Recovery (ESR) to a broader patient population with its ClearSight noninvasive platform. ESR represents an underpenetrated opportunity to help clinicians make more informed fluid management decisions for their patients, which can result in clinical and economic benefits.
Edwards expects to generate Critical Care sales of $520 million to $570 million in 2015, representing a 2 to 4 percent underlying growth rate.
The firm is a leader in its core business of tissue heart valves, with more than 60% of the market. The demographics are in their favor. An increasing aging population means more problems with heart valves and heart failure with more frequency.
The gross margins increased from 47% in 2000 to 75% in 2013. That’s right…75%.
Return on Assets (ttm): 9.64%
Return on Equity (ttm): 44.79%
The company ROE is higher than the industry median. An ROE of 15% is considered attractive. EW blows this number away. The trailing P/E of 18x, means that EW is a bargain compared to the average of of 80x for the industry. This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, EW has beaten estimates by at least 10% in both cases.
In its most recent quarterly announcement, Edwards' earnings rose 14% over the year-earlier quarter to 80 cents a share, beating ANAL-ysts' consensus by 8 cents. Sales increased 23% to $607 million, more than $60 million above the street's average estimate.
Net income for the same period a year earlier was $76.8 million, or $0.68 per diluted share, and non-GAAP net income was $79.5 million, or $0.70 per diluted share.
For the nine months ended September 30, 2014, the company recorded net income of $701.9 million, or $6.49 per diluted share, compared to $314.0 million, or $2.74 per diluted share, for the same period in 2013. Net income growth for the nine months was 123.5 percent and diluted earnings per share increased 136.9 percent over last year, or 6.1 percent excluding special items in both periods.
Net sales for the first nine months of 2014 increased 12.9 percent to $1.7 billion. Sales growth was 12.4 percent on an underlying basis.
U.S. and international segment sales for the first nine months of 2014 were $760.7 million and $944.2 million, respectively.
During the first nine months of 2014, the company repurchased approximately 4.4 million shares of common stock for $300.7 million, substantially all of which was completed in the first quarter.
The company now expects full year 2014 total sales to exceed the high end of its previous $2.05 billion to $2.25 billion range. The company also raised its guidance for full year 2014 diluted earnings per share, excluding special items, to a range of $3.33 to $3.39. For the fourth quarter of 2014, the company projects total sales to be between $575 million and $615 million, and diluted earnings per share, excluding special items, to be between $0.89 and $0.95.
The past and present look great, but what of the future? ANAL-ysts have projected earnings of $4.03/share in 2015 on revenues of $2.43 billion. That’s so funny I almost had a heart attack. $$$MR. MARKET$$$ knows that earnings will actually be $5.07/share on revenues of $2.98 billion. This 26% earnings beat ($5.07 vs. $4.03) would propel the stock price to 163, which is well past my sell price.
Here’s what the bossman had to say. This guy has a lot of heart:
"We expect 2015 to be another year of attractive organic sales growth for Edwards Lifesciences as we continue executing our focused innovation strategy to provide breakthrough therapies for patients in need," said Michael A. Mussallem, chairman and CEO. "Sales of our market-leading technologies, together with greater operating leverage, position us for strong financial performance."
"Although competition is intensifying, we believe our new products position us well to drive solid organic sales growth and help clinicians address critical unmet patient needs," said Mussallem. "We are encouraged that new therapies supported by compelling evidence are being adopted even in this challenging healthcare climate."
"In Europe and the U.S., transcatheter valve procedure growth was strong this quarter and exceeded our expectations," said Mussallem. "Our new product launches have strengthened our leadership position, and we are pleased that greater numbers of patients are benefiting from transcatheter heart valve therapy. The launches of SAPIEN 3 in Europe and SAPIEN XT in the U.S. are largely complete, and feedback from clinicians on these new valves continues to be very positive. We believe current market growth rates are not sustainable and expect competitive activity will increase."
"We are pleased with the results in all product groups and regions this quarter, highlighted by transcatheter heart valves that exceeded our expectations and drove very strong sales performance" The strong year-to-date results reinforce our conviction in our focused innovation strategy and its impact on unmet patient needs."
Let’s get to the heart of the matter. This one is easy money. See you at 149.62
I am HUGE!
$$$MR. MARKET$$$
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