Should Edwards Lifesciences Stock Remain in Your Portfolio Now?

Core Insights - Edwards Lifesciences' fourth-quarter performance was supported by its comprehensive structural heart disease portfolio, particularly in the Surgical Structural Heart business and TAVR segment, despite potential growth challenges from macroeconomic volatility and currency impacts [1][8]. Company Performance - In the past year, Edwards Lifesciences' shares declined by 13.8%, contrasting with a 4.8% growth in the industry and a 24.1% increase in the S&P 500 [2]. - The company has a market capitalization of $44.63 billion and has consistently surpassed earnings estimates over the last four quarters, with an average surprise of 2.60% [2]. Business Segments - The Surgical Structural Heart segment grew by 5% year-over-year in the fourth quarter, driven by strong global adoption of premium surgical technologies such as INSPIRIS, MITRIS, and KONECT [4]. - The TAVR platform achieved a 5.3% year-over-year growth in the fourth quarter, with strong sales growth in both the U.S. and international markets, particularly in Europe and Japan [6][7]. Innovations and Acquisitions - Edwards Lifesciences is advancing its RESILIA tissue technology, with positive data from the COMMENCE trials supporting its portfolio's momentum [3]. - The company completed the acquisition of Endotronix in 2024, marking its entry into the implantable heart failure management market [5]. Economic Challenges - The company faces macroeconomic challenges, including inflation and geopolitical factors that could impact operating results [8]. - Staffing shortages and increased medical supply expenses post-pandemic are putting pressure on margins [9]. - Foreign exchange fluctuations have negatively affected gross margins, with a 30 basis point decrease in the fourth quarter compared to the previous year [10]. Financial Estimates - The Zacks Consensus Estimate for 2025 earnings per share remains at$ 2.45, while the estimate for 2024 revenues is projected at $5.81 billion, indicating a 2.6% decline from the previous year [11].