Edwards Lifesciences (NYSE:EW) posted first-quarter results this evening that beat The Street but cut its outlook for the rest of the year as health providers and patients grapple with the COVID-19 pandemic.
The Irvine, Calif.–based structural heart disease and critical care monitoring company reported profits of $310.6 million, or $1.47 per share, on sales of $1.1 billion for the three months ended March 31, 2020, for a bottom-line gain of 24.4% and sales growth of 13.7% compared with Q1 2019. Global TAVR sales were $742 million, up 24%.
Adjusted to exclude one-time items, earnings per share were $1.51, 18¢ ahead of The Street, where analysts were looking EPS of $1.33 on sales of $$1.08 billion.
“On behalf of everyone at Edwards, I want to express our deep gratitude to our clinician partners and the global healthcare community for their tireless dedication to serving patients during this challenging time,” CEO Michael A. Mussallem said in a news release.
For the rest of the year, Edwards officials expect the pandemic to disrupt the ability of hospitals to conduct procedures using Edwards therapies, with the sales impact most severe in the second quarter. Edwards predicts a gradual recovery during the third quarter.
Edwards now expects 2020 sales in the range of $4.0 to $4.5 billion, down from the previous range of $4.6 to $5.0 billion, with second-quarter sales in the $700-900 million range. Profits in 2020 will be in the range of $4.75 to $5.25 per share, down from the previous guidance of $6.15 to $6.40.
“This is a very difficult time for structural heart patients as they weigh the risk of COVID-19 versus the severe effects of progressive heart valve disease. We will continue to actively engage with healthcare providers as they confront extraordinary disruptions in 2020. There are still many patients in need, and we remain confident in our long-term patient-focused strategy and innovation pipeline,” Mussallem said.
Investors reacted by sending EW shares up more than 4% to $229.95 in after-hours trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 0.6% today.