Edwards Lifesciences Corporation (NYSE:EW) Q4 2024 Earnings Conference Call February 11, 2025 5:00 PM ET Company Participants Mark Wilterding - Senior Vice President, Investor Relations Bernard Zovighian - Chief Executive Officer Scott Ullem - Corporate Vice President and Chief Financial Officer Daveen Chopra - Corporate Vice President, TMTT Larry Wood - Corporate Vice President and Group President of TAVR and SSH Conference Call Participants David Roman - Goldman Sachs Robbie Marcus - JPMorgan Larry Biegel ...

Edwards Lifesciences Corporation One Edwards Way · Irvine, CA USA · 92614 Phone: 949.250.2500 · www.edwards.com FOR IMMEDIATE RELEASE Media Contact: Amy Hytowitz, 949-250-4009 Investor Contact: Mark Wilterding, 949-250-6826 EDWARDS LIFESCIENCES REPORTS FOURTH QUARTER RESULTS IRVINE, CA, Feb. 11, 2025 — Edwards Lifesciences (NYSE: EW) today reported financial results for the quarter and full-year ended Dec. 31, 2024. Highlights and Outlook "It was a year of meaningful progress for Edwards in 2024, as our 16, ...

Core Viewpoint - Edwards Lifesciences (EW) is expected to report a decline in quarterly earnings and revenues, with earnings per share projected at $0.55, down 14.1% year-over-year, and revenues forecasted at $1.36 billion, reflecting an 11.2% decrease [1] Earnings Estimates - The consensus EPS estimate has been revised down by 0.2% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts project 'Net Sales- Transcatheter Mitral and Tricuspid Therapies' to reach $93.28 million, a year-over-year increase of 66.6% [5] - 'Net Sales- Surgical Structural Heart' is expected to be $249.92 million, reflecting a slight increase of 0.7% year-over-year [5] - 'Net Sales- Transcatheter Aortic Valve Replacement' is forecasted at $1.02 billion, indicating a 3.9% increase from the previous year [6] Regional Sales Estimates - 'Net Sales- Europe' is estimated at $336.88 million, showing a year-over-year decline of 2.3% [6] - 'Net Sales- Outside of the United States' is projected to be $571.14 million, reflecting a decrease of 10.7% year-over-year [6] - 'Net Sales- United States' is expected to reach $837.97 million, down 6.3% from the previous year [7] - 'Net Sales- Japan' is forecasted at $84.00 million, indicating a significant decline of 25% year-over-year [7] - 'Net Sales- Rest of World' is projected to be $150.26 million, reflecting a decrease of 17.8% from the year-ago quarter [7] Stock Performance - Over the past month, Edwards Lifesciences shares have decreased by 2.8%, contrasting with the Zacks S&P 500 composite's increase of 2.1% [7] - The company holds a Zacks Rank 3 (Hold), suggesting its performance is likely to align with the overall market in the near term [7]

Core Viewpoint - Edwards Lifesciences Corporation is experiencing a positive shift in its stock performance, driven by an upgrade from Stifel analyst Rick Wise, who raised the price target to $90 from $75, indicating a potential re-acceleration in TAVR growth by 2025 [1][6]. Group 1: TAVR Growth Potential - Recent discussions with TAVR physicians suggest an increase in post-EARLY TAVR referrals, indicating a positive trend in TAVR procedures [2]. - The FDA is anticipated to expand the TAVR label for asymptomatic severe aortic stenosis in mid-2025, with some physicians already treating patients ahead of this change [2]. - TAVR growth had slowed post-COVID, but a more realistic growth forecast of 5-7% for 2025, combined with new data and the expected label expansion, suggests a rebound in TAVR growth [3]. Group 2: Business Strategy and Valuation - The sale of Edwards' Critical Care business to Becton, Dickinson and Company in September 2024 is expected to positively impact the company's valuation, as this segment was the lowest-growth area and non-structural heart asset [4]. - With a focus solely on structural heart, Edwards could potentially trade at a higher-than-historical multiple post-sale [4]. Group 3: Financial Outlook - At the recent annual Analyst Day, the CFO emphasized an increased focus on operating leverage, with expectations of operating margin expansion of 50-100 basis points annually starting in 2026 [5]. - This shift towards margin expansion and EPS growth is viewed positively, as investors may increasingly focus on these aspects as 2026 approaches [6].

Earnings Expectations - Edwards Lifesciences is expected to report Q4 2024 results soon [1] - The Zacks Consensus Estimate for Q4 2024 revenues is $1.36 billion, indicating an 11.2% decline YoY [3] - The Zacks Consensus Estimate for Q4 2024 net earnings is 55 cents per share, a 14.1% drop YoY [3] - The company projected Q4 2024 total sales between $1.33 billion and $1.39 billion, with adjusted EPS between 53 cents and 57 cents [3] Historical Performance - In the last reported quarter, the company's adjusted EPS of 67 cents matched the Zacks Consensus Estimate [2] - The company's earnings beat estimates in one of the trailing four quarters and matched estimates in the other three [2] - EW has a trailing four-quarter earnings surprise of 0.78% on average [2] Business Segments and Growth Drivers - The company likely gained from its patient-focused innovation strategy, favorable hospitalization trends, and strong global adoption of transcatheter heart valves [5] - The Transcatheter Aortic Valve Replacement (TAVR) arm is expected to have seen continued growth in procedures globally, driven by strong demand for the SAPIEN platform [7] - The Transcatheter Mitral and Tricuspid Therapies (TMTT) segment's PASCAL platform likely maintained strong growth momentum globally, supported by differentiated therapies and positive trial results [10] - The Surgical Structural Heart segment is expected to have recorded strong growth, driven by the penetration of premium products like RESILIA technology, MITRIS RESILIA valve, INSPIRIS, and KONECT [12] Challenges and Headwinds - The absence of the Critical Care business operation through September 2024 is expected to have impacted Q4 total revenues [5] - The Critical Care business, sold to Becton, Dickinson and Company for $4.2 billion, recorded $246 million in revenues in Q2 2024, reflecting 7% YoY growth [6] - Regional pressures, particularly in Japan, and slower market growth may have continued to hamper growth in Q4 [8] - Hurricanes in the southeast and a one-time impact from a China distributor rebate adjustment are expected to have impacted TAVR performance [9] - Staffing shortages and geopolitical challenges likely impeded growth in the quarter [13] Quantitative Model Predictions - The company has an Earnings ESP of -0.03% and a Zacks Rank 3, indicating a lower chance of beating estimates [14] Other Medical Stocks to Watch - Masimo (MASI) has an Earnings ESP of +4.05% and a Zacks Rank 1, with an average earnings surprise of 17.10% in the trailing four quarters [15][16] - Merit Medical Systems (MMSI) has an Earnings ESP of +3.03% and a Zacks Rank 2, with an average earnings surprise of 6.42% in the trailing four quarters [16][17] - Cencora (COR) has an Earnings ESP of +0.71% and a Zacks Rank 2, with an average earnings surprise of 2.45% in the trailing four quarters [17][18]

Edwards Lifesciences (EW) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, t ...

Edwards Lifesciences (EW) is developing the most comprehensive structural heart disease portfolio post the sell-off of the Critical Care wing. The Surgical Structural Heart business is benefiting from the strong adoption of premium surgical technologies worldwide. In TMTT (Transcatheter Mitral Triscuspid Therapy) segment, the increasing global uptake of PASCAL and EVOQUE is highly encouraging. Meanwhile, a volatile macro economy and adverse currency impacts may dent Edwards’ growth.In the past year, this Za ...

Investors in Edwards Lifesciences Corporation (EW) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $45.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. ...

Edwards Lifesciences (EW) , following the sell-off of the Critical Care wing, looks forward to developing the most comprehensive structural heart portfolio. In TMTT, the robust adoption of the differentiated PASCAL technology is highly promising. The company is also advancing toward long-term growth through several initiatives across its businesses. Meanwhile, adverse macroeconomic impacts and currency fluctuations remain a concern for Edwards.In the past year, this Zacks Rank #3 (Hold) stock has dropped 1. ...

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Edwards To Contact Him Directly To Discuss Their OptionsIf you suffered losses exceeding $100,000 in Edwards between February 6, 2024 and July 24, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).[You may also click here for additional information]NEW YORK, Dec. 12, 2024 /PRNewswire ...