UPDATE 3-Edwards Lifesciences sees 2010 sales up 10-13 pct

* Sees 2010 income growing 17-19 pct excluding items

* Sees 2010 EPS growing to $3.50-$3.60

* Shares jump to record high (Adds analyst comment, detail, byline; updates stock price)

By Debra Sherman

CHICAGO, Dec 10 (Reuters) - Cardiovascular device maker Edwards Lifesciences Corp (EW.N) said it expects underlying sales growth of 10 to 13 percent in 2010, above most Wall Street estimates.

Edwards shares rose by more than 4 percent to a record $86.63 in late morning trade on the New York Stock Exchange.

Sales of its transcatheter heart valves, which are not yet approved in the United States, are expected to grow to between $170 million and $190 million in 2010, which also exceeds most Street forecasts.

The world's largest maker of heart valves said its financial goals for 2010 include sales of $1.43 billion to $1.50 billion, a gross profit margin increase of a half to a full percentage point, and income growth of 17 to 19 percent excluding special items.

It forecast earnings per share of $3.50 to $3.60, representing growth of 15 to 18 percent over 2009.

Edwards also said it set a goal of free cash flow of $190 million to $200 million for 2010.

"I think this is conservative guidance. It's solid, but not robust ... and I think they're leaving some room to increase guidance later in the year," said Canaccord Adams analyst Jason Mills, who has a "buy" rating on the stock.

4TH QUARTER

Edwards reaffirmed its financial forecast for the fourth quarter. In October it had projected earnings per diluted share of 82 cents to 86 cents, excluding items, on sales of $335 million to $355 million.

Edwards said it anticipates launching the next generation SAPIEN XT transcatheter valve, with its smaller delivery profile and state-of-the-art valve design, in Europe during the first quarter.

It also said it expects to start clinical studies of its SAPIEN XT technology in the United States and Japan during 2010.

Also in 2010, its PARTNER clinical trial data on SAPIEN XT will be presented and submitted to the U.S. Food and Drug Administration in anticipation of a possible U.S. approval in 2011.

According to company slides, which will be presented later Thursday at its investor conference its headquarters in Irvine, California, management sees transcatheter valve sales of $125 million to $250 million in the United States in the first year after launch.

"Projected strong sales growth next year will enable us to continue investing heavily in research and development, which should position us very well to capitalize on the global opportunity represented by transcatheter valves and other advanced technologies," Chairman and Chief Executive Michael Mussallem said in a prepared statement.

Canaccord Adams' Mills said he is unconcerned about Medtronic Inc's (MDT.N) recent entry into the transcatheter heart valve market.

"This is a two-horse race, but the (transcatheter heart valve) market can support at least two players -- I think probably more -- and Edwards has a strong lead," Mills said. "This could be a billion dollar market over the next 5 years." (Reporting by Debra Sherman, editing by Gerald E. McCormick and John Wallace)