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Earnings Preview: Edwards

by Zacks Equity Research

February 04, 2013 | Comments : 0 Recommended this article: (0)

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Edwards Lifesciences Corporation ( EW - Analyst Report ) is scheduled to report its fourth-quarter and full year 2012 results after the market closes on Monday, Feb 4, 2013. Last quarter, this medical device major posted a positive earnings surprise of 3.57%. Let’s see how things are shaping up prior to the announcement.

Edwards’ Growth Profile in the Past Quarter

Edwards Lifesciences faced a challenging third quarter with dismal performance in the overseas market, especially Europe where it battles a contagion of economic problems. Adding to the concern is the foreign exchange headwind. Moreover, the lower transcatheter heart valve (THV) sale in the domestic market dragged the top-line. Thus, the third-quarter results led to a lower, dull outlook for 2012.

While recent product approvals and foothold expansion in lucrative markets might help Edwards overcome its challenges, it also gears for an improved execution in 2013.

Earnings Whispers?

Our proven model does not conclusively suggest that Edwards is likely to beat earnings estimate this quarter. This is because a stock needs to have a positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method) as well as a Zacks Rank of #1, 2 or 3 for this to happen. This, however, is not the case for Edwards as seen below:

Negative Zacks Earnings ESP: The Most Accurate estimate stands at $0.76 while the Zacks Consensus Estimate is $0.77. This translates to an Earnings ESP of -1.30%.

Zacks Rank #2 (Buy): Although Edwards’ Zacks Rank #2 when combined with negative ESP makes the surprise prediction difficult, the odds of a positive surprise turnout are lower.

Other Stocks to Consider

Here are some other companies that warrant a look as they have the right ingredients to report possible earnings beat this quarter:

Cyberonics Inc. ( CYBX - Analyst Report ) , Earnings ESP of +2.56% and Zacks Rank #1 (Strong Buy)

Becton Dickinson and Company ( BDX - Analyst Report ) , Earnings ESP of +3.25% and Zacks Rank #2 (Buy)

Henry Schein Inc. ( HSIC - Snapshot Report ) , Earnings ESP of +0.83% and Zacks Rank #3 (Hold).

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