Have you looked into how Edwards Lifesciences (EW) performed internationally during the quarter ending March 2024? Considering the widespread global presence of this medical device maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential ...

Edwards Lifesciences Corporation (EW) reported adjusted earnings per share (EPS) of 66 cents in first-quarter 2024, surpassing the Zacks Consensus Estimate by 3.1%. The figure also increased 6.5% from the year-ago quarter’s level.The quarter’s one-time adjustments primarily include certain litigation expenses and amortization of intangible assets, among others.GAAP EPS were 58 cents in the quarter, up 3.6% year over year.Sales DetailsFirst-quarter net sales were $1.59 billion, up 9.5% year over year on a re ...

Financial Data and Key Metrics Changes - The company reported first quarter sales growth of 10% to $1.6 billion compared to the previous year, prompting an increase in 2024 sales guidance to the high end of 8% to 10% [45][59] - Adjusted earnings per share for the quarter were $0.66, with a GAAP earnings per share of $0.58, which included one-time expenses related to the planned spin-off of Critical Care [65][59] - The adjusted gross profit margin was 76%, down from 77.5% in the prior year, primarily due to favorable foreign exchange impacts in the previous year [66] Business Line Data and Key Metrics Changes - TAVR sales reached $1 billion in the first quarter, marking an 8% year-over-year increase when adjusted for billing days, with strong growth driven by the U.S. and Japan [49] - TMTT sales were $73 million, representing a 72% increase year-over-year, primarily due to the adoption of the PASCAL system and strong feedback for the EVOQUE system [41][43] - Surgical sales increased by 8% to $266 million, driven by the adoption of premium surgical technologies [55] Market Data and Key Metrics Changes - In the U.S., TAVR sales growth was higher than the global constant currency growth rate, with procedure volumes increasing as the quarter progressed [40] - European TAVR growth was softer than expected, attributed to aggressive pricing from competitors, but is anticipated to normalize throughout the year [52][115] - The company expects to see strong TAVR adoption in Japan, driven by the SAPIEN 3 Ultra RESILIA technology [25] Company Strategy and Development Direction - The company is focused on expanding its TAVR and TMTT platforms, with a commitment to advancing tissue technology and improving patient care [38][45] - The launch of EVOQUE for tricuspid regurgitation is seen as a significant growth opportunity, with expectations for continued adoption and expansion of the product portfolio [46][43] - The company is actively preparing for the launch of SAPIEN 3 Ultra RESILIA in Europe, expected in Q2 2024, to enhance its competitive position [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of TAVR and TMTT, citing strong physician demand and the need for innovative therapies to address untreated patient populations [17][45] - The company anticipates a higher growth rate in TAVR sales in the second half of the year compared to the first half, driven by ongoing patient activation efforts and clinical evidence [54][118] - Management highlighted the importance of addressing barriers to access for underserved communities, reinforcing their commitment to advancing patient care [48] Other Important Information - The company raised its full-year TMTT guidance to $320 million to $340 million, up from a previous range of $280 million to $320 million [43] - The first quarter saw a $305 million deposit related to a tax dispute, impacting free cash flow, which was adjusted to $206 million excluding this item [70] - The company incurred $41 million in one-time costs associated with the spin-off of Critical Care during the first quarter [61] Q&A Session Summary Question: What drove the strong quarter for TMTT? - Management indicated that the majority of growth came from PASCAL, with EVOQUE still in early stages of adoption [85] Question: Why was European growth lower than expected? - Management attributed the lower growth to aggressive pricing from competitors and a few lost billing days, but expects normalization throughout the year [115] Question: How does the company view TAVR growth for the rest of the year? - Management expressed confidence in TAVR growth, noting that Q1 would be the lowest growth quarter and anticipating stronger performance in Q2 and beyond [88][118] Question: What is the impact of the AHA's aortic stenosis initiatives? - Management is excited about the partnership with AHA, aiming to implement quality metrics that could enhance patient flow through the system [135] Question: How does EVOQUE's pricing impact its commercialization? - Management believes EVOQUE offers exceptional clinical benefits and anticipates continued interest from physicians, despite the premium pricing [137]

Edwards Lifesciences (EW) reported $1.6 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 9.5%. EPS of $0.66 for the same period compares to $0.62 a year ago.The reported revenue represents a surprise of +1.43% over the Zacks Consensus Estimate of $1.58 billion. With the consensus EPS estimate being $0.64, the EPS surprise was +3.13%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

Edwards Lifesciences (EW) came out with quarterly earnings of $0.66 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.13%. A quarter ago, it was expected that this medical device maker would post earnings of $0.64 per share when it actually produced earnings of $0.64, delivering no surprise.Over the last four quarters, the co ...

[Q1 2024 Financial Performance Overview](index=1&type=section&id=Q1%202024%20Financial%20Performance%20Overview) Edwards Lifesciences reported strong Q1 2024 sales growth of 10% to $1.6 billion, driven by TMTT, leading to raised full-year guidance [Highlights and Outlook](index=1&type=section&id=Highlights%20and%20Outlook) Edwards Lifesciences achieved strong Q1 2024 sales growth of 10% to $1.6 billion, raising full-year guidance due to robust segment performance Q1 2024 Key Financial Results | Metric | Q1 2024 Result | | :--- | :--- | | Total Sales | $1.6 billion (+10% YoY) | | TAVR Sales Growth | 6% (8% adj. for billing days) | | TMTT Sales Growth | 75% | | EPS | $0.58 | | Adjusted EPS | $0.66 | - The company raised its 2024 sales guidance to the high end of the **8-10%** range, citing a strong start to the year. Guidance was specifically increased for TMTT, Surgical, and Critical Care segments[3](index=3&type=chunk)[4](index=4&type=chunk) - The planned spin-off of the Critical Care business is on track for completion by year-end[4](index=4&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) [Transcatheter Aortic Valve Replacement (TAVR)](index=2&type=section&id=Transcatheter%20Aortic%20Valve%20Replacement%20%28TAVR%29) TAVR sales reached **$1.0 billion**, growing **6%** (8% adjusted), driven by U.S. and Japan, with stable competitive positioning Q1 2024 TAVR Performance | Metric | Q1 2024 Value | | :--- | :--- | | Sales | $1.0 billion | | Reported Growth | 6% | | Constant Currency Growth (adj. for billing days) | 8% | - Growth was driven by performance in the U.S. and Japan, with stable selling prices and competitive position[5](index=5&type=chunk) - The SAPIEN 3 Ultra RESILIA platform is the leading platform in the U.S. and Japan and is set for a European launch in Q2[6](index=6&type=chunk) [Transcatheter Mitral and Tricuspid Therapies (TMTT)](index=2&type=section&id=Transcatheter%20Mitral%20and%20Tricuspid%20Therapies%20%28TMTT%29) TMTT sales surged **75%** to **$73 million**, fueled by PASCAL adoption and the U.S. FDA approval of the EVOQUE system Q1 2024 TMTT Performance | Metric | Q1 2024 Value | | :--- | :--- | | Sales | $73 million | | YoY Growth | 75% | - Growth was driven by the expanded adoption and new site activation of the PASCAL repair system[9](index=9&type=chunk) - In February, the EVOQUE system received U.S. FDA approval, becoming the first transcatheter therapy for treating tricuspid regurgitation[10](index=10&type=chunk) [Surgical Structural Heart and Critical Care](index=2&type=section&id=Surgical%20Structural%20Heart%20and%20Critical%20Care) Surgical Structural Heart grew **7%** to **$266 million**, and Critical Care grew **13%** to **$251 million**, with the spin-off on track Q1 2024 Segment Sales and Growth | Segment | Q1 2024 Sales | Reported Growth | Constant Currency Growth | | :--- | :--- | :--- | :--- | | Surgical Structural Heart | $266 million | 7% | 8% | | Critical Care | $251 million | 13% | 14% | - Surgical growth was driven by strong global adoption of premium technologies including INSPIRIS, MITRIS, and KONECT[11](index=11&type=chunk) - Critical Care growth was led by Smart Recovery technologies, including the Acumen IQ sensor, and strong demand for Swan-Ganz catheters[12](index=12&type=chunk)[13](index=13&type=chunk) [Financial Results and Outlook](index=3&type=section&id=Financial%20Results%20and%20Outlook) [Additional Financial Results](index=3&type=section&id=Additional%20Financial%20Results) Q1 2024 adjusted gross margin was **76.0%**, with increased operating expenses and a strong **$1.7 billion** cash position Q1 2024 vs Q1 2023 Selected Financials | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Adjusted Gross Profit Margin | 76.0% | 77.5% | | SG&A Expenses | $490 million | $436 million | | R&D Expenses | $285 million | $261 million | Balance Sheet Highlights | Balance Sheet Item | As of March 31, 2024 | | :--- | :--- | | Cash, cash equivalents & short-term investments | $1.7 billion | | Total Debt | ~$600 million | | Adjusted Free Cash Flow | $206 million | [Outlook](index=3&type=section&id=Outlook) Edwards Lifesciences raised full-year 2024 sales guidance to the high end of **8-10%** (**$6.3-$6.6 billion**), maintaining EPS guidance Updated Full-Year 2024 Guidance | Segment | Expected Sales Growth | | :--- | :--- | | Total Sales | High end of 8-10% range | | TAVR | 8-10% (constant currency) | | Surgical Structural Heart | 6-8% | | Critical Care | 8-10% | | TMTT | $320 - $340 million | Q2 2024 Guidance | Metric | Q2 2024 Projection | | :--- | :--- | | Total Sales | $1.62 - $1.70 billion | | Adjusted EPS | $0.67 - $0.71 | - The company maintained its full-year 2024 adjusted earnings per share guidance of **$2.70** to **$2.80**[18](index=18&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Unaudited Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) Q1 2024 net sales increased to **$1.60 billion**, with diluted EPS of **$0.58**, despite higher operating expenses Q1 2024 vs Q1 2023 Income Statement (in millions, except EPS) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net sales | $1,598.2 | $1,459.6 | | Gross profit | $1,212.6 | $1,130.1 | | Operating income | $387.5 | $388.4 | | Net income attributable to Edwards | $351.9 | $340.5 | | Diluted EPS | $0.58 | $0.56 | [Unaudited Balance Sheets](index=6&type=section&id=Unaudited%20Balance%20Sheets) Total assets increased to **$9.74 billion**, with total liabilities decreasing and total equity growing to **$7.19 billion** Balance Sheet Summary (in millions) | Account | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,224.6 | $1,144.0 | | Total current assets | $4,170.5 | $4,035.7 | | Total assets | $9,736.3 | $9,363.2 | | Total liabilities | $2,549.9 | $2,643.8 | | Total equity | $7,186.4 | $6,719.4 | [Non-GAAP Financial Measures and Reconciliations](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Explanation of Non-GAAP Measures](index=7&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures provide a clearer view of core operational performance by excluding non-recurring or non-core items - Non-GAAP adjustments are made for items that do not reflect core operational activities, are inconsistent in frequency, or are commonly adjusted within the industry[28](index=28&type=chunk) - Key adjustments in Q1 2024 include certain litigation expenses (**$8.9M**), amortization of intangibles (**$1.4M**), and separation costs for the Critical Care spin-off (**$41.3M**)[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Information](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Information) GAAP diluted EPS of **$0.58** was adjusted to **$0.66** non-GAAP, reflecting adjustments for litigation, amortization, and separation costs Q1 2024 GAAP to Non-GAAP Reconciliation | Metric | GAAP | Adjustments | Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | Gross Profit Margin | 75.9% | +0.1% | 76.0% | | Operating Income | $387.5M | +$51.6M | $439.1M | | Net Income | $351.9M | +$45.4M | $397.3M | | Diluted EPS | $0.58 | +$0.08 | $0.66 | [Reconciliation of Sales by Product and Region](index=11&type=section&id=Reconciliation%20of%20Sales%20by%20Product%20and%20Region) Total sales grew **9.9%** constant currency, with strong performance in the U.S. and significant TMTT growth Q1 2024 Sales Growth by Product Group (Constant Currency) | Product Group | Constant Currency Growth Rate | | :--- | :--- | | Transcatheter Aortic Valve Replacement | 6.6% | | Transcatheter Mitral and Tricuspid Therapies | 72.2% | | Surgical Structural Heart | 7.9% | | Critical Care | 14.4% | | **Total** | **9.9%** | Q1 2024 Sales Growth by Region (Constant Currency) | Region | Constant Currency Growth Rate | | :--- | :--- | | United States | 10.8% | | Europe | 8.4% | | Japan | 8.2% | | Rest of World | 9.4% | [Reconciliation of Cash Flow and TAVR Growth Rate](index=11&type=section&id=Reconciliation%20of%20Cash%20Flow%20and%20TAVR%20Growth%20Rate) Adjusted free cash flow was **$206.2 million**, and TAVR constant currency growth adjusted to **7.7%** for billing days Adjusted Free Cash Flow (in millions) | | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(53.5) | $314.1 | | Adjustments (Tax deposit, Separation costs) | $325.0 | - | | Capital expenditures | $(65.3) | $(61.5) | | **Adjusted Free Cash Flow** | **$206.2** | **$252.6** | - The TAVR constant currency growth rate of **6.6%** adjusts to **7.7%** when accounting for the impact of fewer billing days in the quarter compared to the prior year[41](index=41&type=chunk)

The earnings season is in full swing now with several MedTech bigwigs already releasing first-quarter results. Per the latest Earnings Preview, quarterly results of the Medical sector have declined year over year, affected by the ongoing macroeconomic headwinds, primarily in the form of worldwide geopolitical issues and healthcare labor shortages.Going by the broader Medical sector’s scorecard, 5% of the companies in the Medical sector, constituting 19.4% of the sector’s market capitalization, reported earn ...

The upcoming report from Edwards Lifesciences (EW) is expected to reveal quarterly earnings of $0.64 per share, indicating an increase of 3.2% compared to the year-ago period. Analysts forecast revenues of $1.58 billion, representing an increase of 8% year over year.The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Pri ...

Edwards Lifesciences Corporation (EW) is scheduled to report first-quarter 2024 results on Apr 25, after market close.In the last reported quarter, the company’s adjusted earnings per share of 64 cents matched the Zacks Consensus Estimate. The company’s earnings beat estimates in two of the trailing four quarters and matched estimates in the other two. EW has a trailing four-quarter earnings surprise of 0.80% on average.Let's see how things have shaped up before this announcement.Factors at PlaySimilar to t ...

Edwards Lifesciences Corporation (EW) shares have surged 21.8% year to date compared with the industry’s rise of 7.2%. The Medical sector has gained 5.2% in the said time frame. The company has a market capitalization of $55.83 billion.The company’s consistent growth performance reflects its commitment to advancing its leadership in surgical structural heart therapies. The strategic spin-off of Critical Care aims to boost the company’s R&D and innovations and enable a sharpened focus on structural heart dis ...