• Revenue: $1.35 billion in sales from continuing operations, with underlying sales growth of 9.6%.

• Adjusted Earnings Per Share (EPS): $0.67, slightly ahead of guidance.

• Gross Profit Margin: 80.7%, slightly higher year over year and sequentially.

• Operating Profit Margin: Adjusted operating profit margin at 31.4% for Q3.

• Tax Rate: Adjusted tax rate of 12.4% for the quarter.

• Cash and Cash Equivalents: Approximately $3.5 billion as of September 30th.

• Share Repurchase: $1 billion of stock repurchased during the third quarter.

• TAVR Sales: $1 billion, increased 6% when adjusted for currency and billing days.

• TMTT Sales: $91 million, representing 74% growth over the prior year.

• Surgical Structural Heart Sales: $240 million, increased 5% over prior year.

• Full Year Sales Growth Guidance: 8% to 10% remains unchanged.

• Q4 Sales Guidance: $1.33 to $1.39 billion.

• Q4 EPS Guidance: $0.53 to $0.57.

• Warning! GuruFocus has detected 2 Warning Sign with EW.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Edwards Lifesciences Corp (NYSE:EW) reported third-quarter 2024 sales of $1.35 billion, reflecting a 9.6% growth from continuing operations, slightly ahead of expectations.

• The company achieved a strong adjusted gross profit margin of 80.7%, higher than the previous year and sequentially.

• Edwards Lifesciences Corp (NYSE:EW) is seeing significant growth in its Transcatheter Mitral and Tricuspid Therapies (TMTT) segment, with sales reaching $91 million, a 74% increase over the prior year.

• The company is expanding its product portfolio with new innovations like the PASCAL repair system and the Evoque tricuspid replacement system, which are gaining traction globally.

• Edwards Lifesciences Corp (NYSE:EW) is actively pursuing new therapeutic areas, such as aortic regurgitation and implantable heart failure management, aligning with its long-term growth vision.

Negative Points

• The company experienced some operational challenges, including the impact of hurricanes in the Southeast and a one-time China distributor rebate adjustment, affecting fourth-quarter sales guidance.

• Edwards Lifesciences Corp (NYSE:EW) is facing capacity constraints in hospitals, which could impact the growth of its Transcatheter Aortic Valve Replacement (TAVR) procedures.

• The discontinuation of critical care operations and the associated financial adjustments have impacted the company's earnings per share.

• There are concerns about competitive pressures in the market, particularly with new entrants and technologies potentially affecting market share.

• The company anticipates a lower fourth-quarter year-over-year sales growth rate due to one-time items and fewer selling days compared to the third quarter.