Edward Lifescience Corp. (EW) To Remain Conservative

Edward Lifesciences Corp. (NYSE: EW) is holding its annual investors conference on December 9-10. Goldman Sachs (NYSE: GS) has recently revised its revenue estimates for the firm to a 11.6% reported growth rate from the earlier consensus at 8.2%. Positive movements in the foreign exchange rate and improvement in core surgical valve business mix had been the main impetus for this upward revision of the estimates.

During the conference, the firm is expected to provide guidance for the year 2010. The company is anticipated to maintain or improve its earlier guidance of $1.305-$1.325 Billion in revenue for Y2010. EPS is expected to be in the vicinity of $3.02-$3.06. However, Edward Lifesciences management is likely to maintain conservative outlook for Y2010 due to the PARTNER trial towards the middle of the year.

Edward Lifesciences is also prone to suffer from delay in the US approval of TCV. Further, slow recovery in the hospital sector and lethargic European reimbursements would also have negative impact on the firm. GS has given a 12-months price target of $95.