Edwards(US:EW)2025-10-30 20:18Sales Performance - Q3 sales increased by 14.7% to $1.55 billion, with adjusted growth of 12.6% across all product groups[4] - TAVR sales reached $1.15 billion, growing 12.4% year-over-year, or 10.6% on a constant currency basis[5] - TMTT sales were $145.2 million, representing a year-over-year growth of 59.3%[8] - Net sales for Q3 2025 reached $1,553.1 million, a 14.7% increase from $1,354.4 million in Q3 2024[31] - Year-to-date sales for 2025 totaled $4,498.0 million, reflecting an increase of $444.3 million or 11.0% compared to the same period in 2024[45] - Sales in the United States for Q3 2025 were $907.5 million, a growth of $102.9 million or 12.8% year-over-year[45] - European sales increased by 21.3% to $387.9 million, up $68.1 million from Q3 2024[45] - Outside the United States, sales reached $645.6 million, representing a growth of 17.4% compared to the previous year[45] - The company reported a 59.8% increase in Transcatheter Mitral and Tricuspid Therapies year-to-date, with sales of $394.9 million[45] - Surgical Structural Heart sales for Q3 2025 were $258.0 million, an increase of $18.0 million or 7.5% from Q3 2024[45] Financial Metrics - Adjusted EPS for Q3 was $0.67, with a reported EPS of $0.50[4] - The company raised its full-year sales growth guidance to the high end of 9-10% and adjusted EPS guidance to $2.56 to $2.62[22] - The adjusted gross profit margin for Q3 was 77.9%, down from 80.7% in the same period last year[17] - Gross profit margin for Q3 2025 was 77.8%, down from 80.6% in Q3 2024[31] - The effective tax rate for Q3 2025 was 16.1%, compared to 10.1% in Q3 2024[31] - Basic earnings per share from continuing operations for Q3 2025 was $0.50, down from $0.61 in Q3 2024[31] - The adjusted net income for the same period was $389.9 million, with an adjusted EPS of $0.67, reflecting a profit margin of 27.5%[43] - For the nine months ended September 30, 2025, net sales reached $4,498.0 million, with a gross profit margin of 78.0% and a net income of $995.9 million, leading to an EPS of $1.70[44] - The adjusted net income for the nine months was $1,160.3 million, with an adjusted EPS of $1.98, indicating a profit margin of 28.3%[44] Expenses and Costs - SG&A expenses were $515 million, or 33.1% of sales, compared to $421 million, or 31.1% of sales last year[18] - R&D expenses increased to $281 million, reflecting strategic investments in the structural heart portfolio[19] - The company recorded certain litigation expenses of $90.4 million in Q3 2025, significantly higher than $10.8 million in Q3 2024[36] - Intangible assets impairment charges amounted to $40.0 million in Q3 2025, with no such charges in Q3 2024[38] - The company incurred certain litigation expenses of $90.4 million for the three months ended September 30, 2025, impacting the net income[43] - For the nine months ended September 30, 2025, litigation expenses totaled $116.8 million, which also affected the overall financial performance[44] Future Outlook - The company plans to project total sales for Q4 between $1.51 and $1.59 billion, with adjusted EPS of $0.58 to $0.64[22] - The company plans to continue focusing on litigation management and cost control to enhance future profitability and operational efficiency[43] - The company anticipates continued growth in the Implantable Heart Failure Management segment, with adjustments starting in September 2025[45]