Edwards-EW Stock Up on Q4 Earnings and Revenue Beat, Margins Crash

Core Insights - Edwards Lifesciences Corporation reported fourth-quarter 2024 adjusted earnings per share (EPS) of 59 cents, exceeding the Zacks Consensus Estimate by 7.3% and reflecting a 7.3% increase year-over-year [1][2] - The company achieved fourth-quarter sales of $1.39 billion, a 9.4% year-over-year increase, surpassing the Zacks Consensus Estimate by 2.2% [4] - Despite strong performance in earnings and revenues, the company experienced a contraction in both gross and operating margins during the quarter [15] Financial Performance - Full-year adjusted EPS was$ 2.43, a 9.5% increase from 2023, but missed the Zacks Consensus Estimate by 5.1% [2] - GAAP EPS from continuing operations was 58 cents, compared to 55 cents in the fourth quarter of 2023 [2] - Gross profit for the quarter was $1.09 billion, up 7.7% year-over-year, with a gross margin of 78.9%, down 126 basis points from the previous year [10][11] Sales Breakdown - Global sales in the Transcatheter Aortic Valve Replacement (TAVR) product group reached$ 1.04 billion, a 5.8% year-over-year increase [5] - Transcatheter Mitral and Tricuspid Therapies (TMTT) sales totaled $105.1 million, up 87.7% from the prior year [7] - Surgical Structural Heart sales were$ 244.4 million, reflecting a 5.8% increase year-over-year [8] Cash Position and Debt - The company ended the fourth quarter with cash and cash equivalents of $3.00 billion, significantly up from$ 1.14 billion at the end of 2023 [12] - Debt remained stable at $600 million, consistent with the previous year [12] Guidance - For 2025, the company projects constant currency sales growth of 8-10%, with a Zacks Consensus Estimate of$ 5.81 billion [13] - Adjusted EPS is expected to be in the range of $2.40-$ 2.50, with the first-quarter EPS projected between 58-64 cents [13][14]