Back to top

Analyst Blog

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 - Analyst Report), Earnings ESP of +0.83% and Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%