Edwards(US:EW)2024-10-25 01:30Financial Data and Key Metrics Changes - The company reported third quarter sales from continuing operations of $1.35 billion, reflecting a 9.6% underlying sales growth [20][21] - Adjusted earnings per share for the quarter was $0.67, slightly ahead of expectations [20] - The adjusted gross profit margin was elevated at 80.7%, slightly higher year-over-year and sequentially [22][23] - The company expects fourth quarter gross margin to align with the high end of its full year guidance range of 76% to 78% [22][62] Business Line Data and Key Metrics Changes - TAVR global sales reached $1 billion in the third quarter, increasing 6% when adjusted for currency [8][12] - TMTT sales were $91 million, representing a 74% growth over the prior year, driven by PASCAL growth globally [14] - Surgical sales from continuing operations were $240 million, increasing 5% over the prior year [16] Market Data and Key Metrics Changes - In the U.S., TAVR sales growth was in line with global growth, with hospitals exploring investments to address future workflow needs [10][12] - In Europe, the market position improved sequentially, supported by the launch of SAPIEN 3 Ultra RESILIA [11] - Japan experienced slower market growth, impacting results, but the company remains focused on addressing under-treatment of AS [11] Company Strategy and Development Direction - The company aims to position TAVR for long-term growth through differentiated technologies and global initiatives [6][7] - New therapeutic areas such as aortic regurgitation and implantable heart failure management are being explored [7][18] - The company is committed to expanding its portfolio and driving sustainable growth through innovative therapies [7][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth opportunities driven by innovative therapies and strong clinical evidence [27] - The company anticipates challenges in the fourth quarter due to one-time items and fewer selling days compared to the third quarter [26] - Management remains optimistic about the ability of hospitals to scale and support trans-catheter procedure growth over time [10][46] Other Important Information - The company closed the sale of critical care in September, which impacted financial results [21] - The company repurchased $1 billion of stock during the third quarter, with approximately $1.4 billion remaining under its share repurchase authorization [25] - The company expects to provide detailed 2025 financial guidance at an investor conference in December [26] Q&A Session Summary Question: Clarification on Q4 guidance and EPS - Management indicated that the elimination of critical care impacted earnings per share by about $0.35, along with additional expenses from acquisitions [30][32] Question: Impact of hurricanes and China on Q4 guidance - Management clarified that the China adjustment was a one-time rebate and that there are three fewer selling days in Q4 compared to Q3 [35][36] Question: Competitive dynamics and market share - Management acknowledged the competitive landscape but emphasized the strength of their clinical evidence and technology, maintaining a premium pricing strategy [71][72] Question: Updates on EVOQUE and NCD - Management is optimistic about the NCD process for EVOQUE and expects a draft by year-end, with full support for CMS efforts [50][51]