Edwards(US:EW)2025-10-30 22:00Financial Data and Key Metrics Changes - Sales in Q3 2025 grew 12.6% to $1.55 billion, leading to an increase in full-year sales growth guidance to the high end of the previous 9% to 10% range [5][27] - Adjusted earnings per share (EPS) for Q3 was $0.67, exceeding expectations, while GAAP EPS was $0.50 [22][27] - Adjusted gross profit margin was 77.9%, down from 80.7% year-over-year, primarily due to foreign exchange and operational expenses [23] Business Line Data and Key Metrics Changes - TAVR global sales reached $1.15 billion, a 10.6% increase year-over-year, driven by renewed clinician focus on aortic stenosis treatment [13][14] - TMTT product group sales were $144 million, up 53% year-over-year, fueled by strong performance of Pascal and EVOKE [17] - Surgical product group sales were $258 million, increasing 5.6% year-over-year, supported by the adoption of Resilia therapies [20] Market Data and Key Metrics Changes - TAVR growth was supported by new evidence, guideline updates, and expanded education, with strong procedure growth in the U.S. and Europe [14][16] - In Japan, TAVR sales growth improved, reflecting a gradual recovery in market growth [16] - The global market for TMTT is expected to grow to an estimated $2 billion by 2030 [12] Company Strategy and Development Direction - The company is focused on structural heart therapies, positioning itself for sustainable multi-year growth [6][12] - There is a commitment to expanding into heart failure and aortic regurgitation as next-generation contributors to patient impact and growth [12][30] - The company plans to discuss long-term financial goals and market potential at the upcoming investor conference in December [27][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong Q3 performance and multiple growth drivers [5][6] - The management highlighted the importance of recent clinical data and guideline changes in driving TAVR adoption [14][37] - There is optimism regarding the upcoming approval of SAPIEN M3 in the U.S. by early 2026, which is expected to enhance treatment options for mitral patients [20][46] Other Important Information - The company has approximately $3 billion in cash and cash equivalents, with a share repurchase authorization of about $2 billion remaining [25] - The CFO announced plans to transition out of the role by mid-2026, with a succession plan in place [27][29] Q&A Session Summary Question: What drove the strength in TAVR growth this quarter? - Management attributed the strong performance to renewed focus on TAVR, new evidence, and a lack of typical summer seasonality [32][33] Question: How does the recent TCT data impact physician practices? - The data presented at TCT reassured physicians about TAVR's long-term performance, encouraging earlier treatment in the disease progression pathway [36][37] Question: What is the outlook for TAVR growth excluding Boston Scientific's exit? - Management indicated that while the growth was strong, it should not be considered the new normal, and they expect continued good performance in Q4 [32][33] Question: How does the company view the potential for broader diagnostic rates for AS? - Management sees the recent studies validating the market potential for AS as positive, suggesting that greater awareness and referral could lead to increased adoption [43][44] Question: What is the expected impact of FX on margins next year? - Management stated that they would provide detailed guidance on FX impacts at the upcoming investor conference [40] Question: What are the expectations for the SAPIEN M3 launch compared to EVOQUE? - The SAPIEN M3 launch is being approached with a controlled strategy, focusing on training and ensuring optimal outcomes before broader adoption [46][47]