Health care stocks fell for a fifth day in a row on Wednesday, with the NYSE Health Care Index posting a 1.1% retreat today while shares of health care companies in the S&P 500 were down 0.6% as a group.
In company news, Edwards Lifesciences (EW) tumbled Wednesday and Wall Street was quick to pile on after the medical device company last night reported Q3 sales trailing analyst estimates and forecast below-consensus revenue for the current quarter.
Analysts at Stifel and RBC Capital Markets both reduced their respective price targets for the company’s stock in response to Edwards’ Q3 sales missing the $749.1 million consensus by just under $10 million in addition to a Q4 guidance range of $750 million to $790 million coming up at least $12 million short of the Street view. Stifel cut its price target by $8 to $114 a share, reiterating its Buy recommendation. RBC pared its price target by $7 to $123 a share while maintaing an Outperform call for the stock.
Excluding one-time items, Edwards met analyst expectations with adjusted Q3 net income of $0.68 per share during the three months ended Sept. 30, up from a $0.50 per share non-GAAP profit during the same quarter last year, as revenue rose 25.9% over year-ago levels to $739.4 million.
EW shares were down almost 17% at $94.86 late in Wednesday trading, earlier sinking to a session low of $94.68 a share.
In other sector news,
(+) OGXI, Reports 20% reduction in the risk of death among patients with metastatic bladder cancer who were treated with the company’s apatorsen drug candidate combined with docetaxel chemotherapy compared with patients treated with docetaxel alone.
(-) TNXP, Prices $5.2 mln public offering consisting of 9.5 mln common shares at 55 cents each. Investors also received one five-year warrant to buy one half of a common share, or up to 4.75 mln shares overall, exercisable at 63 cents a share.
By Travis Berry