HeartWare International, Inc. (HTWR) recently announced preliminary top-line results for fourth quarter and full year 2014. The company expects to report complete fourth quarter and full-year 2014 financial results in late Feb 2015.
For the fourth quarter, HeartWare expects revenues to be approximately $73 million. It is estimated that HeartWare Ventricular Assist (HVAD) system sales in the fourth quarter increased approximately 9% from the previous quarter, which ultimately drove the upside in revenues. Notably, in the third quarter of 2014, HVAD system sales had increased 22.7% on a year-over-year basis.
For 2014, the company anticipates revenues to increase by 34% on a year-over-year basis to $278 million. The Zacks Consensus Estimate for 2014 is currently pegged at $276 million. The upside necessarily underscores the strong penetration the company achieved for the HeartWare Ventricular Assist System in both the U.S. and international markets.
HeartWare remains focused on expanding commercial growth with the help of clinical progress. Recently, the company announced the first patient implant in the HVAD LATERAL Study. This is essentially a U.S. Investigational Device Exemption (IDE) clinical trial.
In this trial, the company’s HeartWare Ventricular Assist System, featuring the HVAD Pump, is implanted through a less-invasive thoracotomy procedure in patients suffering from end-stage heart failure. The study is primarily being conducted to examine the clinical outcomes of this specific surgical technique, which promises to make implantation easier for surgeons.
HeartWare is also planning to initiate a trial in Japan to evaluate the company’s MVAD System. Incidentally, the company is encouraged by the potential of the mechanical circulatory support market in Japan.
We expect favorable results from these trials to drive top-line growth for HeartWare going forward.
Zacks Rank
Currently, HeartWare carries a Zacks Rank #3 (Hold). Better-ranked stocks in the medical instruments industry include Inogen (INGN), Synergetics USA (SURG) and ABIOMED (ABMD). While Inogen and Synergetics USA sport a Zacks Rank #1 (Strong Buy), ABIOMED carries a Zacks Rank #2 (Buy).
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