Edwards Lifesciences (EW) Reports Next Week: Wall Street Expects Earnings Growth

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$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]