Edwards Lifesciences Corporation EW is scheduled to report third-quarter 2024 results on Oct. 24, after market close.
In the last reported quarter, the company’s adjusted earnings per share of 70 cents were in line with the Zacks Consensus Estimate. The company’s earnings beat estimates in one of the trailing four quarters and matched estimates in the other three. EW has a trailing four-quarter earnings surprise of 0.78% on average.
Q3 Estimates
The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues is pegged at $1.59 billion, suggesting a rise of 7% from the year-ago reported figure.
The Zacks Consensus Estimate for third-quarter 2024 net earnings of 67 cents per share indicates a 13.6% improvement from the year-ago reported figure.
For the third quarter of 2024, the company projected total sales to be between $1.56 billion and $1.67 billion. It expects adjusted EPS in the band of 67 cents to 71 cents.
Estimate Revision Trend Ahead of Earnings
Estimates for Edwards Lifesciences’ third-quarter earnings increased by a penny in the past 30 days.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let's briefly look at how things have progressed for the MedTech major leading up to this announcement.
Factors at Play
Similar to the last reported quarter, Edwards Lifesciences is likely to have gained from its patient-focused innovation strategy. A favorable hospitalization trend, strong global adoption of transcatheter heart valves and improved procedural volume are expected to have driven growth in the third quarter. However, the absence of Critical Care business operation through September is likely to have impacted third-quarter total revenues of Edwards Life Sciences.
On Sept. 3, 2024, the company announced the completion of the sell-off of the Critical Care product group to Becton, Dickinson and Company or BD, for a total value of $4.2 billion. This business recorded $246 million of revenues in the second quarter, implying 7% year-over-year growth. In the third quarter, the company must have recorded two months of revenues within this business. Growth in Smart Recovery portfolio is likely to be reflected in the third-quarter results. Continued strong adoption of Acumen IQ sensors, Swan-Ganz catheters and pressure monitoring devices used in the ICU is expected to have contributed to the two months performance of this business in the third quarter.
Our model predicts the segment’s third-quarter revenues to be $236.3 million.
Edwards Lifesciences Corporation Price and EPS Surprise
Edwards Lifesciences Corporation Price and EPS Surprise
Within the Transcatheter Aortic Valve Replacement (TAVR) arm, Edwards Lifesciences is likely to have witnessed continued growth in procedures across the United States and worldwide. The continued strong demand for the company’s SAPIEN platform is expected to have acted as the primary growth factor. SAPIEN currently constitutes the majority of the company’s sales within the United States.
However, during the second quarter, the company faced a tough competitive position in the United States, resulting in slower-than-expected sales growth within the TAVR business. The continued growth and expansion of structural heart therapies, including newly approved tricuspid therapies and other fast-growing structural heart therapies, put pressure on hospital workflows, which impacted TAVR. With the overall situation remaining unchanged, we expect TAVR to have faced similar pressure in the third quarter as well.
However, the launch of the SAPIEN 3 Ultra RESILIA valve in Europe in May 2024 might have contributed to TAVR sales in the third quarter.
The company’s Transcatheter Mitral and Tricuspid Therapies (TMTT) segment’s PASCAL platform is likely to have maintained strong growth momentum in the third quarter globally, backed by its portfolio of differentiated therapies, positive pivotal trial results to support approvals and adoption and favorable real-world clinical outcomes. The TMTT segment’s performance is expected to have been driven by the strong adoption of the differentiated PASCAL Precision platform across the United States and Europe. Further, the company is expected to have gained business with the continued adoption of the EVOQUE tricuspid replacement system and the strong performance of the SAPIEN M3 mitral replacement system in the United States and Europe.
Our model estimates the Transcatheter Heart Valves business to report revenues of $1.10 billion, implying an 8.5% improvement from the year-ago period.
Within Surgical Structural Heart, the company is expected to have recorded strong third-quarter growth, banking on the penetration of its premium products across all regions.
Edwards Lifesciences is likely to have gained from strong global adoption of its premium RESILIA technology and improvement in procedural volumes. Edwards Lifesciences is expected to have seen strong global adoption of premium surgical technologies, including the MITRIS RESILIA valve, INSPIRIS and KONECT. In the third quarter, the company is expected to have witnessed procedure growth globally within Surgical.
Our model estimates the segment’s third-quarter revenues to be $262.5 million, suggesting a 6.5% rise from the year-ago quarter’s reported figure.
However, staffing shortages, which reduced hospital capacity, and choppy market conditions due to a difficult geopolitical situation are likely to have impeded the company’s growth in the quarter to be reported.
What Our Quantitative Model Predicts
Per our proven model, stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of beating estimates. This is not the case here, as you can see:
Earnings ESP: Edwards Lifesciences has an Earnings ESP of -5.10%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are a few medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this quarter.
ACADIA Pharmaceuticals ACAD has an Earnings ESP of +0.92% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACAD’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 42.37%. The Zacks Consensus Estimate for the company’s third-quarter EPS indicates a surge of 127.5% from the year-ago quarter reported figure. The company is expected to release third-quarter 2024 results soon.
RadNet RDNT has an Earnings ESP of +20.00% and a Zacks Rank #2. The company is expected to release third-quarter 2024 results soon.
RDNT’s earnings surpassed estimates in three of the trailing four quarters and matched the same once, with the average surprise being 98.23%. The Zacks Consensus Estimate for RadNet’s third-quarter EPS indicates an increase of 21.4% from the year-ago quarter reported figure.
Masimo MASI has an Earnings ESP of +0.40% and a Zacks Rank #2. The company is likely to release third-quarter 2024 results shortly.
The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 14.63%. The Zacks Consensus Estimate for MASI’s 2024 third-quarter EPS indicates an improvement of 33.3% from the year-ago quarter reported figure.
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