Edwards Lifesciences (NYSE:EW) stock is down on Thursday after the heart disease care company announced earnings for its second quarter of 2024. That earnings report starts with its adjusted EPS of 70 cents. This just beats out Wall Street's estimate of 69 cents per share. It's also better than the 66 cents per share reported in the same period of the year prior. However, the company's revenue of $1.63 billion failed to impress investors. That comes in below analysts' estimate of $1.65 billion for the perio ...

Financial Data and Key Metrics Changes - Total company sales for Q2 2024 reached $1.6 billion, reflecting an 8% increase on a constant currency basis compared to the previous year [10] - Adjusted EPS was $0.70, while GAAP EPS was $0.61, which included one-time separation expenses related to the sale of Critical Care [36][50] - Adjusted gross profit margin was 77.1%, down from 77.7% in the same period last year, primarily due to foreign exchange impacts [39] Business Line Data and Key Metrics Changes - TAVR sales in Q2 were $1.04 billion, a 6% year-over-year increase, which was lower than expected [13] - TMTT sales reached $83 million, representing a 75% increase year-over-year, driven by the PASCAL repair system and early commercial introduction of EVOQUE [23] - Surgical structural heart sales were $264 million, up 5% from the prior year, supported by strong adoption of premium surgical technologies [29] - Critical Care sales were $246 million, increasing 7% year-over-year, led by pressure monitoring devices [30] Market Data and Key Metrics Changes - In the US, TAVR sales growth was slightly below the global constant currency growth rate, impacted by increased competition and hospital workflow pressures [16] - Outside the US, TAVR sales growth was slightly above the global average, with double-digit growth in Japan driven by SAPIEN 3 Ultra RESILIA [20] - The company anticipates TAVR sales growth for the second half of the year to be between 5% to 7%, down from previous guidance of 8% to 10% [21] Company Strategy and Development Direction - The company announced acquisitions of JenaValve and Endotronix to expand into new therapeutic areas, specifically aortic regurgitation and heart failure [12][31] - The strategic focus remains on advancing TAVR and TMTT technologies, with a commitment to improving patient care and expanding market share [45] - The company is confident in its long-term growth strategy, aiming for sustainable double-digit revenue and earnings growth [51] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that TAVR growth was below expectations due to increased competition and hospital workflow challenges, but remains optimistic about long-term opportunities [11][70] - The company is focused on improving referral and treatment rates for patients with severe symptomatic aortic stenosis through initiatives like the ENACT patient activation program [18] - Management expects minimal revenue contribution from recent acquisitions in 2025 but anticipates long-term growth opportunities from these investments [34][43] Other Important Information - The company plans to close the sale of Critical Care by late Q3 2024, with one-time costs associated with the sale impacting financials [42] - The company maintains a strong balance sheet with approximately $2 billion in cash and short-term investments as of June 30 [42] Q&A Session Summary Question: What would be compelling for early TAVR? - Management indicated that a compelling case for early intervention would need to demonstrate significant benefits, such as mortality reduction, to drive TAVR growth [56][58] Question: What is the outlook for TAVR growth? - Management acknowledged that TAVR growth has been slower than expected, but they believe hospitals will adapt and scale to support increasing volumes over time [70][74] Question: How does the company view the TAVR market's long-term potential? - Management remains confident in the long-term potential of the TAVR market, with a previously stated total addressable market of $10 billion by 2028, although they are not updating guidance at this time [95][96]

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Net Sales- Outside of the United States: $569.10 million compared to the $684.70 million average estimate based on three analysts. The reported number represents a change of -10.4% year over year. Net Sales- United States: $816.80 million versus the three-analyst average e ...

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.69 on $1.62 billion in revenues for the coming quarter and $2.77 on $6.56 billion in revenues for the current fiscal year. What's Next for Edwards Lifesciences? Edwards Lifesciences (EW) came out with quarterly earnings of $0.70 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.66 per share a year ago. These figures ...

Earnings Expectations - The market expects Edwards Lifesciences to report a year-over-year increase in earnings and revenues for the quarter ended June 2024 [1] - The company is expected to post quarterly earnings of $0.70 per share, representing a year-over-year change of +6.1% [2] - Revenues are expected to be $1.65 billion, up 8.1% from the year-ago quarter [12] Earnings ESP and Zacks Rank - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being a more recent version of the consensus estimate [4] - A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [6] - Edwards Lifesciences currently has a Zacks Rank of 4 (Sell) [7] - The company's Earnings ESP is +0.58%, indicating that the Most Accurate Estimate is higher than the Zacks Consensus Estimate [23] Historical Performance and Estimate Revisions - For the last reported quarter, Edwards Lifesciences delivered a surprise of +3.13%, with actual earnings of $0.66 per share compared to the expected $0.64 [8] - Over the last four quarters, the company has beaten consensus EPS estimates two times [22] - The consensus EPS estimate for the quarter has been revised 0.14% lower over the last 30 days [21] Predictive Insights - Stocks with a positive Earnings ESP and a solid Zacks Rank produce a positive surprise nearly 70% of the time [6] - A positive or negative Earnings ESP reading theoretically indicates the likely deviation of actual earnings from the consensus estimate, but the model's predictive power is significant for positive ESP readings only [14] - It is difficult to predict an earnings beat with confidence for stocks with negative Earnings ESP readings and/or a Zacks Rank of 4 (Sell) or 5 (Strong Sell) [20] Market Reaction and Future Expectations - The stock might move higher if key numbers top expectations in the upcoming earnings report, expected to be released on July 24 [11] - Management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations [19]

Edwards Lifesciences Corporation (EW) is scheduled to report second-quarter 2024 results on Jul 24, after market close. Q2 Estimates The Zacks Consensus Estimate for second-quarter 2024 net earnings of 70 cents per share indicates a 6.1% improvement from the year-ago reported figure. Estimate Revision Trend Ahead of Earnings Let's briefly look at how things have progressed for the MedTech major leading up to this announcement. Similar to the last reported quarter, Edwards Lifesciences is likely to have gain ...

Core Viewpoint - East West Petroleum Corp. has decided to return capital to its shareholders through a reduction in stated capital, which is currently $39,868,761, by up to $3 million, to facilitate a cash distribution of $0.03 per common share [1][6]. Group 1: Capital Reduction and Distribution - The Company will hold a special meeting in August 2024 to seek shareholder approval for the proposed Capital Reduction and Distribution [6]. - The Distribution aims to provide shareholders with a portion of the Company's cash, amounting to $0.03 per common share [6]. - The Capital Reduction and Distribution are contingent upon receiving necessary shareholder and regulatory approvals [6]. Group 2: Meeting and Documentation - Further details regarding the Capital Reduction, Distribution, and special meeting will be provided in a management information circular to be filed with regulatory authorities and mailed to shareholders in July 2024 [2]. - Shareholders are encouraged to review the materials related to the Meeting once they become available [7].

Core Insights - Edwards Lifesciences Corporation is positioned for growth due to its differentiated portfolio of advanced therapies, particularly the SAPIEN 3 Ultra RESILIA platform, which leads in the U.S. and Japan [1] - The stock has gained 30.2% over the past six months, outperforming the industry and S&P 500 [2] - The company faces challenges from stiff competition and foreign exchange headwinds [1][7] Upsides - The Surgical Structural Heart segment is expected to maintain leadership in the global TAVR market by expanding patient access through current valve platforms [3] - The MOMENTIS clinical study is projected to complete U.S. and Canada enrollment by Q2 2024, a year ahead of schedule, with global enrollment continuing into 2025 [4] - TAVR sales have shown strong growth, with first-quarter 2024 sales exceeding $1 billion, marking an 8% year-over-year increase [5] Financial Position - The company has a solid balance sheet, exiting Q1 2024 with cash and cash equivalents of $1.69 billion, up from $1.64 billion in Q4 2023, and no near-term debt [6] - Long-term debt slightly increased to $597.2 million at the end of Q1 2024 [6] Downsides - Foreign exchange impacts are significant, with 42% of revenues coming from international markets, affecting gross margins [7] - The competitive landscape includes major players like Medtronic, Abbott Laboratories, and Boston Scientific, posing challenges in the TAVR market [9] Estimate Trends - The Zacks Consensus Estimate for 2024 EPS has increased from $2.76 to $2.77, with revenues expected to rise by 9.3% to $6.56 billion [10]

Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Has Edwards Lifesciences (EW) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Medical peers, we might be able to answer that question.Edwards Lifesciences is one of 1050 companies in the Medical group. The Medical group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measur ...

[Part I. FINANCIAL INFORMATION](index=4&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Edwards Lifesciences reported increased total assets and net sales for Q1 2024, with net income rising, though operating cash flow significantly decreased due to a large tax deposit [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Total assets increased to $9.74 billion as of March 31, 2024, while total liabilities slightly decreased, leading to higher stockholders' equity Key Balance Sheet Items (in millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $4,170.5 | $4,035.7 | | **Total assets** | $9,736.3 | $9,363.2 | | **Total current liabilities** | $1,110.8 | $1,195.4 | | **Total liabilities** | $2,549.9 | $2,643.8 | | **Total stockholders' equity** | $7,186.4 | $6,719.4 | [Consolidated Condensed Statements of Operations](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) Net sales increased by 9.5% to $1.60 billion in Q1 2024, with gross profit growing, but operating income remained flat due to separation costs Q1 2024 vs Q1 2023 Statement of Operations (in millions, except EPS) | Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Net sales | $1,598.2 | $1,459.6 | +9.5% | | Gross profit | $1,212.6 | $1,130.1 | +7.3% | | Operating income, net | $387.5 | $388.4 | -0.2% | | Net income attributable to Edwards | $351.9 | $340.5 | +3.3% | | Diluted EPS | $0.58 | $0.56 | +3.6% | - Operating income was impacted by **$41.3 million** in separation costs related to the planned spin-off of the Critical Care product group, which were not present in the prior year period[15](index=15&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $53.5 million in Q1 2024, a significant decrease from prior year, mainly due to higher income tax payments Q1 2024 vs Q1 2023 Cash Flows (in millions) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(53.5) | $314.1 | | Net cash provided by investing activities | $63.1 | $0.5 | | Net cash provided by (used in) financing activities | $61.7 | $(206.6) | - Cash paid for income taxes increased substantially to **$349.2 million** in Q1 2024 from **$21.7 million** in Q1 2023, significantly impacting operating cash flow[21](index=21&type=chunk)[40](index=40&type=chunk) [Notes to Consolidated Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) Notes detail $41.3 million in spin-off costs, ongoing legal proceedings including an FCPA investigation, and significant income tax disputes with the IRS and Israel Tax Authority - The company incurred **$41.3 million** in separation costs during Q1 2024 related to the planned spin-off of its Critical Care product group, expected to be completed near the end of 2024[43](index=43&type=chunk) - The company is involved in several legal and regulatory matters, including an internal investigation related to the FCPA, a patent infringement lawsuit from Aortic Innovations LLC, and an investigation by the European Commission into certain business practices[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - The company is contesting a Notice of Deficiency from the IRS for the 2015-2017 tax years seeking an additional **$269.3 million** in tax, making a **$305 million** deposit in March 2024 to mitigate interest accrual[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) - In Q1 2024, the company received a tax assessment from the Israel Tax Authority for approximately **$110 million** related to a claimed 2017 transfer of intellectual property, which the company is vigorously defending[101](index=101&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a 9.5% increase in Q1 2024 net sales to $1.6 billion, driven by TAVR, while gross margin declined due to FX and separation costs, with ongoing tax disputes noted [Overview](index=30&type=section&id=Overview) Q1 2024 net sales reached $1.6 billion, up 9.5%, driven by TAVR, with the Critical Care product group spin-off planned for late 2024 - The company is the global leader in medical innovations for structural heart disease and critical care monitoring[109](index=109&type=chunk) - On December 7, 2023, the company announced its intention to complete a tax-free spin-off of its Critical Care product group near the end of 2024[109](index=109&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Net sales grew 9.5% to $1.6 billion, with TMTT and Critical Care leading product growth, while gross margin declined due to FX and increased operating expenses Net Sales by Region (in millions) | Region | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | United States | $940.7 | $849.1 | 10.8% | | Europe | $367.8 | $331.1 | 11.1% | | Japan | $110.8 | $114.1 | (2.8)% | | Rest of World | $178.9 | $165.3 | 8.2% | | **Total** | **$1,598.2** | **$1,459.6** | **9.5%** | Net Sales by Product Group (in millions) | Product Group | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Transcatheter Aortic Valve Replacement (TAVR) | $1,007.9 | $947.9 | 6.3% | | Transcatheter Mitral and Tricuspid Therapies (TMTT) | $72.9 | $41.6 | 75.2% | | Surgical Structural Heart | $266.1 | $248.2 | 7.2% | | Critical Care | $251.3 | $221.9 | 13.3% | | **Total** | **$1,598.2** | **$1,459.6** | **9.5%** | - The decrease in gross profit margin was primarily driven by a **1.6 percentage point** negative impact from foreign currency rate fluctuations[131](index=131&type=chunk) - The company incurred separation costs of **$41.3 million** during Q1 2024 related to the planned spin-off of the Critical Care product group[138](index=138&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $1.7 billion in cash and investments, but Q1 2024 operating cash flow was negative due to a large tax deposit - As of March 31, 2024, cash, cash equivalents, and short-term investments totaled **$1.7 billion**, split between **$851.4 million** in the U.S. and **$846.2 million** outside the U.S.[154](index=154&type=chunk) - The company has a **$750.0 million** multi-currency unsecured revolving credit facility maturing in July 2027, with no amounts outstanding as of March 31, 2024[155](index=155&type=chunk) - Net cash flow from operations decreased by **$367.6 million** year-over-year, primarily due to a **$305.1 million** tax deposit made in 2024 to mitigate interest on potential tax liabilities being contested with the IRS[162](index=162&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk exposures were reported, though the company faces investment risk from its $805.8 million debt and $122.8 million equity portfolios - There have been no material changes to the company's exposure to interest rate risk, foreign currency risk, credit risk, and concentrations of risk since the year ended December 31, 2023[167](index=167&type=chunk) - The company is exposed to investment risk from its portfolio of **$805.8 million** in debt securities and **$122.8 million** in equity instruments as of March 31, 2024[168](index=168&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2024, the company's disclosure controls and procedures are effective at a reasonable assurance level[169](index=169&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter ended March 31, 2024[170](index=170&type=chunk) [Part II. OTHER INFORMATION](index=42&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company incorporates by reference its legal proceedings from Note 11, including an FCPA investigation, patent litigation, and an EU Commission inquiry - For a description of legal proceedings, the report refers to Note 11 in Part I, Item 1 of the financial statements[173](index=173&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the filing of the 2023 Annual Report on Form 10-K - No material changes to the company's risk factors have occurred since the filing of the Annual Report on Form 10-K for the year ended December 31, 2023[174](index=174&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock in Q1 2024, with $1.0485 billion remaining available under the authorized repurchase program - The company did not purchase any of its common stock during the first quarter of 2024[175](index=175&type=chunk) - As of March 31, 2024, the company had remaining authority to purchase **$1,048.5 million** of its common stock[175](index=175&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) Several executive officers and directors, including the Chairman, CFO, and CEO, entered into Rule 10b5-1 trading plans in Q1 2024 - In February 2024, Chairman Michael A. Mussallem, CFO Scott B. Ullem, and CEO Bernard J. Zovighian each entered into a Rule 10b5-1 trading plan for future sales of company stock[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk)