Edwards Lifesciences
(NYSE: EW)
reported third-quarter results that met Wall Street expectations, with solid sales growth keeping it on track to boost revenue by up to 13% this year.
Investors may have expected more from the maker of catheter-delivered heart implants, including transcatheter aortic valve replacement systems and transcatheter mitral and tricuspid therapies. The morning after the evening earning report, EW shares were down more than 6% to $63.76 apiece. MassDevice‘s MedTech 100 Index was down more than 1%.
“We still await evidence of significant, sustainable improvement for TAVR market dynamics,” said analysts Marie Thibault and Sam Eiber of BTIG.
Here are more details about Edwards LifeSciences’ Q3 results
Irvine, California–based Edwards Lifesciences earned nearly $384 million, or 63¢ per share, off of $1.48 billion in revenue during the quarter that ended Sept. 30, 2023. Both the bottom line and the top line were up roughly 12% year over year.
Adjusted to exclude one-time items, earnings per share were 59¢. The result met the expectations of The Street, where analysts predicted EPS of 59¢ and revenue of $1.48 billion.
“We are pleased with our strong third quarter performance, which included multiple new therapy approvals for the treatment of patients globally and important achievements on clinical milestones, as well as another quarter of double-digit sales growth,” said Edwards CEO Bernard Zovighian.
“The increasing demand for our advanced technologies, coupled with the successful execution of our innovation strategy, gives us confidence in the tremendous opportunity to address unmet patient needs and drive differentiated long-term value.”
Zovighian added during the following earnings call that he saw no financial exposure for Edwards when it came to a European Commission antitrust probe that is presently underway.
Edwards Lifesciences has had some positive news recently
The earnings news came out after Edwards Lifesciences presented positive five-year data for its Sapien 3 TAVR system at the 2023 Transcatheter Cardiovascular Therapeutics (TCT) conference in San Francisco. The PARTNER 3 trial results showed continued low rates of all-cause mortality, disabling stroke and rehospitalization at five years. Add in continued strong TAVR sales growth — 11% in Q3 alone — and Edwards officials see a $10 billion opportunity by 2028.
“After more than 20 years of rigorous clinical experience and over 1 million patients treated, TAVR with Sapien is now a highly effective standard of care for patients suffering from aortic heart valve failure,” said Larry Wood, group president of TAVR and surgical structural heart at Edwards Lifesciences, in the company’s earnings news release.
Other recent Edwards wins included securing a CE mark in the European Union for its Evoque tricuspid valve replacement system. In addition, Japanese regulators approved the company’s Pascal Precision system to treat patients with degenerative mitral regurgitation.
Edwards Lifesciences continues to expect total revenue, as well as TAVR sales, to grow 10–13% on a constant currency basis this year. The company is also sticking with its projection of full-year adjusted EPS of $2.50–$2.60.
This story originally ran on Oct. 25, 2023. Updated Oct. 26 with next-day stock price and analyst comments.
