Edwards Lifesciences shares off 11 pct after sales disappoint CHICAGO (Global Markets) - Edwards Lifesciences Corp (EW.N) shares slid more than 11 percent on Friday, a day after the heart valve maker reported results that disappointed investors and prompted at least one broker downgrade.Stock Market Predictions
The company after the market closed on Thursday reported better-than-expected fourth-quarter earnings but sales were lighter than expected, prompting concerns that the adoption of its transcatheter valves may be slower than previously expected.
U.S. regulators in November approved the company's new Sapien heart valve for patients deemed too sick to have open-heart surgery. Wall Street is expecting it to become a blockbuster product.
European sales were also lower than expected.
"While we remain bullish on the long-term potential of transcatheter aortic valve implants and we expect Edwards Lifesciences to maintain its leadership position in this attractive space, we are downgrading our rating on Edwards Lifesciences to market perform," Wells Fargo analyst Larry Biegelsen wrote in a research note.
He said he took the action because of near-term uncertainty of adoption of the Sapien valve in the United States, poor visibility on Sapien sales outside the United States, and the stock's high valuation.
Analysts also raised concerns about weak European transcatheter valve sales, although it was viewed as a short-term issue.
"We are also inclined to view the European transcatheter heart valve softness as temporary - due primarily to macroeconomic concerns in certain countries and not to lack of underlying demand," Leerink Swann analyst Rick Wise wrote in a note.
Edwards shares were off 11.5 percent to $71.37 in morning trade on the New York Stock Exchange.
(Reporting By Debra Sherman; editing by Mark Porter)
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