Edwards Lifesciences‘ EW shares are trading higher Thursday after the company reported first-quarter 2025 sales of $1.41 billion.That’s almost in line with the consensus of $1.40 billion and the management guidance of $1.35 billion—$1.43 billion, up 6.2% year-over-year or 7.9% on an adjusted basis.Also Read: Trump Tariffs Spare Drugmakers But Threaten Diabetes Device IndustryIn the first quarter, the company reported: An adjusted EPS of 64 cents. It beat the consensus of 60 cents and remained within the man ...

Edwards Lifesciences Corporation (EW) reported first-quarter 2025 adjusted earnings per share (EPS) of 64 cents, which surpassed the Zacks Consensus Estimate by 6.7%. The figure increased 16.4% from the year-ago quarter’s level. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).The quarter’s one-time adjustments primarily include certain litigation expenses and amortization of intangible assets.GAAP EPS from continuing operations was 62 cents compared with 54 cents in the first quarte ...

Edwards Lifesciences Corporation One Edwards Way · Irvine, CA USA · 92614 Phone: 949.250.2500 · www.edwards.com FOR IMMEDIATE RELEASE Media Contact: Amy Meshulam, 949-250-4009 Investor Contact: Mark Wilterding, 949-250-6826 EDWARDS LIFESCIENCES REPORTS FIRST QUARTER RESULTS IRVINE, CA, Apr. 23, 2025 — Edwards Lifesciences (NYSE: EW) today reported financial results for the quarter ended Mar. 31, 2025. Recent Highlights 2025 Outlook "The many milestones achieved this quarter are the result of our structural ...

Wall Street analysts expect Edwards Lifesciences (EW) to post quarterly earnings of $0.60 per share in its upcoming report, which indicates a year-over-year decline of 9.1%. Revenues are expected to be $1.4 billion, down 12.2% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Ahead of a company's earnings disclosure, it is cruci ...

Edwards Lifesciences Corp. (EW) is scheduled to report first-quarter 2025 results on April 23, after market close.In the last reported quarter, the company’s adjusted earnings per share of 59 cents beat the Zacks Consensus Estimate by 7.27%. Its earnings beat estimates in two of the trailing four quarters and matched on the other two occasions, the average surprise being 2.60%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Q1 EstimatesThe Zacks Consensus Estimate for the company’s ...

Market Overview - There has been a significant tone shift in markets so far in 2025, with technology and discretionary sectors lagging behind [1] - Last year's underperforming areas, including Health Care and Energy sectors, have seen increased interest and investment [1] Sector Performance - The Health Care Select Sector SPDR Fund ETF has caught a bid, indicating a positive shift in investor sentiment towards the health care sector [1]

Sales Performance - Sales of TAVR products represented 75%, 77%, and 79% of net sales in 2024, 2023, and 2022, respectively[25]. - Sales of surgical tissue heart valve products accounted for 18%, 19%, and 19% of net sales in 2024, 2023, and 2022, respectively[28]. - In 2024, 59% of net sales were derived from customers in the United States, while 41% came from international markets[35][36]. - Total net sales for 2024 reached $5,439.5 million, an increase of $429.5 million or 8.6% compared to 2023[162]. - Net sales in the United States were $3,206.0 million, up $258.1 million or 8.8% from $2,947.9 million in 2023[162]. - Sales of Transcatheter Aortic Valve Replacement products increased to $4,106.1 million, a rise of $226.3 million or 5.8% from $3,879.8 million in 2023[163]. - The Transcatheter Mitral and Tricuspid Therapies segment saw a significant increase of 78.2%, with sales rising to $352.1 million from $197.6 million[163]. Research and Development - Research and development spending increased by 9% year over year, representing 19% of 2024 sales, primarily due to investments in transcatheter structural heart programs[45]. - The company is developing new products to improve transcatheter aortic heart valve replacement procedures and investing in technologies for mitral and tricuspid valve diseases[47]. - Research and development activities are primarily conducted in the United States and Israel, with collaborations with leading research institutions and clinicians globally[53]. - The company focuses on developing medical technologies for cardiovascular disease treatment, including bioprosthetic surgical tissue heart valves and transcatheter valves[52]. - The company completed patient enrollment in the PROGRESS pivotal trial for moderate AS patients and received CE Mark approval for the Edwards SAPIEN 3 Ultra RESILIA valve in Europe[167]. - Research and Development (R&D) expenses increased as the company continued to invest in aortic transcatheter valve innovations and clinical trial activities[177]. Regulatory and Compliance - Compliance with FDA regulations is resource-intensive, and several products are pending regulatory clearance or approval[60]. - The EU's Medical Device Regulation (MDR) implemented in May 2021 requires re-certification of many products, leading to substantial additional expenses[66]. - The company is subject to various laws and regulations, including anti-kickback laws and the Stark law, which could impact its operations[62]. - The regulatory approval process for new products requires extensive clinical trials, and unfavorable clinical data could adversely impact the company's market prospects[95]. - The company is subject to rigorous governmental regulations, which may incur significant compliance costs and impact business operations if not adhered to[124]. Financial Performance - Gross profit increased in 2024, although the gross profit margin decreased by 0.6 percentage points due to foreign currency fluctuations[174]. - Selling, General, and Administrative (SG&A) expenses rose due to higher personnel-related costs and expenses related to recent business combinations[176]. - Interest income increased to $120.3 million in 2024 from $67.2 million in 2023, driven by a higher average investment balance and yield[186]. - Other non-operating income rose to $68.9 million in 2024, up from $13.9 million in 2023, mainly due to gains from the remeasurement of previously held equity interests[187]. - The effective income tax rate decreased to 9.8% in 2024 from 11.1% in 2023, attributed to increased tax benefits from foreign earnings and favorable audit settlements[188]. - Net cash flows from operating activities decreased by $353.5 million to $542.3 million in 2024, primarily due to tax payments of $1.2 billion[216]. - Net cash provided by investing activities was $2.3 billion in 2024, mainly from the sale of Critical Care, offset by $1.1 billion for acquisitions and $252.4 million in capital expenditures[217]. - Net cash used in financing activities was $983 million in 2024, primarily due to treasury stock purchases of $1.2 billion[219]. Employee and Culture - The talent management strategy aims to attract and retain a motivated workforce aligned with the company's patient-focused innovation strategy[77]. - The company is committed to maintaining an ethical culture, promoting diversity, and ensuring fair compensation practices across all operating regions[83]. - As of December 31, 2024, the company had approximately 15,800 employees worldwide, with the majority located in the United States, Singapore, and Costa Rica[88]. - The company emphasizes a patient-focused culture and aims to foster inclusion and collaboration among employees to drive innovation[84]. - The company conducts a multilingual global employee survey, myVoice, to gather feedback on various topics, including patient focus and diversity, which is reviewed by management and the Board of Directors[85]. - The company offers competitive employee benefits and well-being packages, focusing on mental health, nutrition, and physical activity, to enhance employee performance[86]. - The company is committed to developing talent from within, providing extensive learning and development resources for employees at all levels[87]. Risks and Challenges - The company faces risks related to the failure to innovate and market products effectively, which could materially affect its prospects[94]. - Manufacturing and quality problems could materially affect the company's business, especially as it expands into new markets[96]. - The company relies on key physicians and research institutions for product development and marketing, and any disruption in these relationships could adversely impact its business[98]. - The company is subject to risks associated with public health crises, which could result in material adverse impacts on its financial condition and operations[99]. - The company faces challenges in recruiting and retaining qualified talent, which is critical for its continued success and operational stability[105]. - The integration of acquired businesses and technologies may be costly and could divert resources from other product developments, potentially impacting overall business performance[106]. - The company has been impacted by domestic and global economic conditions, which may affect sales and operations due to factors like inflation and interest rates[111]. - Changes in health care legislation and reimbursement policies could adversely affect demand for the company's products and their pricing[112]. - The company is involved in pending or threatened lawsuits related to products, workplace matters, and governmental investigations, which may impact financial performance[236]. - Legal accruals require significant judgment due to the complexities and uncertainties of each case, affecting the company's financial statements[236]. Acquisitions and Divestitures - The company sold its Critical Care product group to Becton, Dickinson and Company on September 3, 2024, which may introduce operational complexities and risks[108]. - The company entered into agreements to acquire multiple medical device companies for a total cash purchase price of $1.5 billion, with $1.1 billion paid upon closing of the transactions[211]. - The company sold its Critical Care product group for $4.2 billion in cash, completing the sale in early September 2024[212]. - The sale of Critical Care to BD was completed on September 3, 2024, incurring expenses of $19.0 million for consulting, legal, and advisory services related to the transaction[181].

Core Insights - Edwards Lifesciences' fourth-quarter performance was supported by its comprehensive structural heart disease portfolio, particularly in the Surgical Structural Heart business and TAVR segment, despite potential growth challenges from macroeconomic volatility and currency impacts [1][8]. Company Performance - In the past year, Edwards Lifesciences' shares declined by 13.8%, contrasting with a 4.8% growth in the industry and a 24.1% increase in the S&P 500 [2]. - The company has a market capitalization of $44.63 billion and has consistently surpassed earnings estimates over the last four quarters, with an average surprise of 2.60% [2]. Business Segments - The Surgical Structural Heart segment grew by 5% year-over-year in the fourth quarter, driven by strong global adoption of premium surgical technologies such as INSPIRIS, MITRIS, and KONECT [4]. - The TAVR platform achieved a 5.3% year-over-year growth in the fourth quarter, with strong sales growth in both the U.S. and international markets, particularly in Europe and Japan [6][7]. Innovations and Acquisitions - Edwards Lifesciences is advancing its RESILIA tissue technology, with positive data from the COMMENCE trials supporting its portfolio's momentum [3]. - The company completed the acquisition of Endotronix in 2024, marking its entry into the implantable heart failure management market [5]. Economic Challenges - The company faces macroeconomic challenges, including inflation and geopolitical factors that could impact operating results [8]. - Staffing shortages and increased medical supply expenses post-pandemic are putting pressure on margins [9]. - Foreign exchange fluctuations have negatively affected gross margins, with a 30 basis point decrease in the fourth quarter compared to the previous year [10]. Financial Estimates - The Zacks Consensus Estimate for 2025 earnings per share remains at $2.45, while the estimate for 2024 revenues is projected at $5.81 billion, indicating a 2.6% decline from the previous year [11].

Core Insights - Edwards Lifesciences reported fourth-quarter sales of $1.39 billion, exceeding the consensus estimate of $1.36 billion, reflecting a 9% year-over-year growth across all product groups [1] - Adjusted earnings per share were 59 cents, surpassing analysts' expectations of 55 cents [1] - The company anticipates continued growth driven by key segments, including TAVR and TMTT, with guidance for Q1 2025 adjusted EPS of 58-64 cents and revenue of $1.35 billion to $1.43 billion [5] Group 1: Financial Performance - Fourth-quarter TAVR global sales increased by 5.3% year-over-year to $1.04 billion [1] - TMTT sales reached $105 million for the quarter, with full-year sales of $352 million marking a 77% year-over-year increase [2] - The gross profit margin was 78.9%, down from 80.2% in the same period last year, while the operating profit margin was 22.6% [3] Group 2: Growth Drivers and Future Outlook - The CEO highlighted three key growth drivers: TAVR, Mitral and Tricuspid therapies, and emerging opportunities in Structural Heart Failure and Aortic Regurgitation [4] - The company expects adjusted operating margins of 27%-28% for 2025, with further annual operating profit margin expansion anticipated [5] - Analysts see potential for high-single- to low-double-digit sales growth, driven by increased adoption in underpenetrated markets and structural heart expansion [6][7] Group 3: Market Position and Stock Performance - Continued strength in TMTT supports Edwards' market position, with upcoming data and new product launches as potential catalysts for growth [7] - The stock price increased by 6.19% to $75.30 following the earnings report [7]

Core Insights - Edwards Lifesciences Corporation reported fourth-quarter 2024 adjusted earnings per share (EPS) of 59 cents, exceeding the Zacks Consensus Estimate by 7.3% and reflecting a 7.3% increase year-over-year [1][2] - The company achieved fourth-quarter sales of $1.39 billion, a 9.4% year-over-year increase, surpassing the Zacks Consensus Estimate by 2.2% [4] - Despite strong performance in earnings and revenues, the company experienced a contraction in both gross and operating margins during the quarter [15] Financial Performance - Full-year adjusted EPS was $2.43, a 9.5% increase from 2023, but missed the Zacks Consensus Estimate by 5.1% [2] - GAAP EPS from continuing operations was 58 cents, compared to 55 cents in the fourth quarter of 2023 [2] - Gross profit for the quarter was $1.09 billion, up 7.7% year-over-year, with a gross margin of 78.9%, down 126 basis points from the previous year [10][11] Sales Breakdown - Global sales in the Transcatheter Aortic Valve Replacement (TAVR) product group reached $1.04 billion, a 5.8% year-over-year increase [5] - Transcatheter Mitral and Tricuspid Therapies (TMTT) sales totaled $105.1 million, up 87.7% from the prior year [7] - Surgical Structural Heart sales were $244.4 million, reflecting a 5.8% increase year-over-year [8] Cash Position and Debt - The company ended the fourth quarter with cash and cash equivalents of $3.00 billion, significantly up from $1.14 billion at the end of 2023 [12] - Debt remained stable at $600 million, consistent with the previous year [12] Guidance - For 2025, the company projects constant currency sales growth of 8-10%, with a Zacks Consensus Estimate of $5.81 billion [13] - Adjusted EPS is expected to be in the range of $2.40-$2.50, with the first-quarter EPS projected between 58-64 cents [13][14]