Medical device company announces major strategic moves
- Edwards Lifesciences plans to spin off its Critical Care unit in a tax-free transaction
- The new company is expected to generate about $905 million in sales in 2023
- Katie Szyman will be the CEO of the new company
- Edwards Lifesciences also announces a $1 billion stock buyback
- The company expects adjusted profit of $2.70 to $2.80 per share in 2024
- Projected sales for 2024 are $6.3 billion to $6.6 billion
Edwards Lifesciences Corp. has revealed its plans to spin off its Critical Care unit into an independent company through a tax-free transaction by the end of 2024. The new company is expected to generate approximately $905 million in sales in 2023. Katie Szyman, the current corporate vice president of Critical Care, will serve as the CEO of the new company. In addition to the spinoff, Edwards Lifesciences also announced a $1 billion stock buyback. The company expects to achieve an adjusted profit of $2.70 to $2.80 per share in 2024, slightly below the FactSet consensus estimate of $2.80 per share. Furthermore, Edwards Lifesciences projects sales of $6.3 billion to $6.6 billion for 2024, while analysts are forecasting sales of $6.51 billion.
Factuality Level: 8
Factuality Justification: The article provides specific information about Edwards Lifesciences Corp.’s plans to form an independent company out of its Critical Care unit and the expected sales for 2023 and 2024. It also mentions the appointment of Katie Szyman as the chief executive of the new company and the company’s plans to buy back $1 billion in stock. The article includes some financial projections and compares them to analyst estimates. Overall, the information provided seems factual and based on official statements and estimates.
Noise Level: 7
Noise Justification: The article provides relevant information about Edwards Lifesciences Corp.’s plans to form an independent company out of its Critical Care unit and its expected sales and profit for 2024. However, it lacks in-depth analysis, evidence, and actionable insights. The article also includes repetitive information about the CEO and the stock buyback plan, which adds to the noise level.
Financial Relevance: Yes
Financial Markets Impacted: Edwards Lifesciences Corp.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses Edwards Lifesciences Corp.’s plans for a tax-free spinoff transaction and stock buyback. However, there is no mention of an extreme event or its impact.
Public Companies: Edwards Lifesciences Corp. (EW)
Key People: Katie Szyman (Chief Executive of the new company)
Reported publicly:
www.marketwatch.com 
