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Will Edwards' (EW) Steady Overall Growth Drive Q2 Earnings?
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Edwards Lifesciences Corporation (EW - Free Report) is slated to report second-quarter 2018 results, after the market closes on Jul 26. Last quarter, the company’s earnings beat the Zacks Consensus Estimate by 10.9%. Moreover, Edwards Lifesciences has delivered positive earnings surprises in three of the trailing four quarters, the average beat being 8.9%. Let's see how things are shaping up prior to this announcement.
Key Catalyst
Similar to the prior quarter, this time too, Edwards Lifesciences is expected to gain from strength in Transcatheter Heart Valve Therapy segment (THVT). Banking on continued therapy adoption across all geographies with notable strength in the United States, the company is expected to maintain this bullish trend in the second quarter of 2018 as well.
Of late, THVT has been on a strong growth trajectory in the United States. The company has been gaining from the receipt of FDA approval for aortic and mitral valve-in-valve procedures, using SAPIEN 3 transcatheter heart valve, which is expected to boost the top line at the THVT segment in the to-be-reported quarter as well.
Edwards Lifesciences is expected to continue to gain from strong clinical performance by SAPIEN 3 in the United States as well as strong therapy implementation across all regions.
Edwards Lifesciences Corporation Price and EPS Surprise
Outside the United States, the underlying growth rate was solid. The company has been fortifying its THVT business in Europe as well. In this regard, Edwards Lifesciences maintained double-digit procedure growth in Europe in the last reported quarter. Further, the company announced the receipt of CE Mark for its self-expanding CENTERA valve in February. The latest development is likely to enhance Edwards Lifesciences’ prospects in Europe.
The company also continued to see strong TAVR therapy adoption in Japan driven by SAPIEN 3. Moreover, some new centers were added in this highest growth region, which in turn is expected to result in increasing sales in the to-be-reported quarter.
Accordingly, the Zacks Consensus Estimate for transcatheter heart valves (THV) sales of $586 million shows an increase of 20.1% from the year-ago quarter.
Overall, second-quarter total revenues are projected at $964.7 million, up 14.6% from the prior-year quarter.
Here are the other factors that might influence Edwards Lifesciences’ second-quarter results:
Edwards Lifesciences is expected to maintain its strong performance based on strength in two other segments — Surgical Heart Valve Therapy and Critical Care.
The Surgical Heart Valve Therapy product group delivered a strong performance last quarter driven by encouraging performance of new products along with strong uptake of aortic valves across all geographies. Moreover, buoyed by the continued adoption of INTUITY Elite valve system, management expects INTUITY Elite valve system sales to continue to drive the top line in the to-be-reported quarter.
This apart, INSPIRIS RESILIA aortic valve is witnessing encouraging demand in the United States since its roll out began last January.
TheZacks Consensus Estimate for Surgical Heart Valve Therapy product sales of $217 million reflects a rise of 4.8% from the year-ago quarter.
We are also upbeat about Critical Care product group sales witnessing solid growth across all product categories driven by strong performance in the company's core products, mainly in the United States and China.
Also, Edwards Lifesciences aims to strengthen its hold in Critical Care technologies with the rollout of HemoSphere monitoring platform and expansion of Enhanced Surgical Recovery programs. The company also recently announced the approval of De Novo request by the FDA for the Acumen Hypotension Prediction Index (HPI) software. Notably, the company was planning a targeted launch of the product in the United States.
Accordingly, theZacks Consensus Estimate for Critical Care product group sales of $161 million shows an increase of 9.5% from the year-ago quarter.
For the second quarter of 2018, the company projects sales between $950 million and $1 billion and adjusted EPS between $1.05 and $1.15.
What Our Model Suggests
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Edwards Lifesciences has a Zacks Rank #3 and an Earnings ESP of +0.59%, a combination that suggests that the company is likely to beat estimates.
The Zacks Consensus Estimate for earnings of $1.13 reflects a 4.6% rise on a year-over-year basis.
Other Stocks to Consider
Here are a few other medical stocks worth considering that have the right combination of elements to beat estimates this time around:
Baxter International Inc. (BAX - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #2.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Will Edwards' (EW) Steady Overall Growth Drive Q2 Earnings?
Edwards Lifesciences Corporation (EW - Free Report) is slated to report second-quarter 2018 results, after the market closes on Jul 26. Last quarter, the company’s earnings beat the Zacks Consensus Estimate by 10.9%. Moreover, Edwards Lifesciences has delivered positive earnings surprises in three of the trailing four quarters, the average beat being 8.9%. Let's see how things are shaping up prior to this announcement.
Key Catalyst
Similar to the prior quarter, this time too, Edwards Lifesciences is expected to gain from strength in Transcatheter Heart Valve Therapy segment (THVT). Banking on continued therapy adoption across all geographies with notable strength in the United States, the company is expected to maintain this bullish trend in the second quarter of 2018 as well.
Of late, THVT has been on a strong growth trajectory in the United States. The company has been gaining from the receipt of FDA approval for aortic and mitral valve-in-valve procedures, using SAPIEN 3 transcatheter heart valve, which is expected to boost the top line at the THVT segment in the to-be-reported quarter as well.
Edwards Lifesciences is expected to continue to gain from strong clinical performance by SAPIEN 3 in the United States as well as strong therapy implementation across all regions.
Edwards Lifesciences Corporation Price and EPS Surprise
Edwards Lifesciences Corporation Price and EPS Surprise | Edwards Lifesciences Corporation Quote
Outside the United States, the underlying growth rate was solid. The company has been fortifying its THVT business in Europe as well. In this regard, Edwards Lifesciences maintained double-digit procedure growth in Europe in the last reported quarter. Further, the company announced the receipt of CE Mark for its self-expanding CENTERA valve in February. The latest development is likely to enhance Edwards Lifesciences’ prospects in Europe.
The company also continued to see strong TAVR therapy adoption in Japan driven by SAPIEN 3. Moreover, some new centers were added in this highest growth region, which in turn is expected to result in increasing sales in the to-be-reported quarter.
Accordingly, the Zacks Consensus Estimate for transcatheter heart valves (THV) sales of $586 million shows an increase of 20.1% from the year-ago quarter.
Overall, second-quarter total revenues are projected at $964.7 million, up 14.6% from the prior-year quarter.
Here are the other factors that might influence Edwards Lifesciences’ second-quarter results:
Edwards Lifesciences is expected to maintain its strong performance based on strength in two other segments — Surgical Heart Valve Therapy and Critical Care.
The Surgical Heart Valve Therapy product group delivered a strong performance last quarter driven by encouraging performance of new products along with strong uptake of aortic valves across all geographies. Moreover, buoyed by the continued adoption of INTUITY Elite valve system, management expects INTUITY Elite valve system sales to continue to drive the top line in the to-be-reported quarter.
This apart, INSPIRIS RESILIA aortic valve is witnessing encouraging demand in the United States since its roll out began last January.
TheZacks Consensus Estimate for Surgical Heart Valve Therapy product sales of $217 million reflects a rise of 4.8% from the year-ago quarter.
We are also upbeat about Critical Care product group sales witnessing solid growth across all product categories driven by strong performance in the company's core products, mainly in the United States and China.
Also, Edwards Lifesciences aims to strengthen its hold in Critical Care technologies with the rollout of HemoSphere monitoring platform and expansion of Enhanced Surgical Recovery programs. The company also recently announced the approval of De Novo request by the FDA for the Acumen Hypotension Prediction Index (HPI) software. Notably, the company was planning a targeted launch of the product in the United States.
Accordingly, theZacks Consensus Estimate for Critical Care product group sales of $161 million shows an increase of 9.5% from the year-ago quarter.
For the second quarter of 2018, the company projects sales between $950 million and $1 billion and adjusted EPS between $1.05 and $1.15.
What Our Model Suggests
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Edwards Lifesciences has a Zacks Rank #3 and an Earnings ESP of +0.59%, a combination that suggests that the company is likely to beat estimates.
The Zacks Consensus Estimate for earnings of $1.13 reflects a 4.6% rise on a year-over-year basis.
Other Stocks to Consider
Here are a few other medical stocks worth considering that have the right combination of elements to beat estimates this time around:
Align Technology, Inc. (ALGN - Free Report) has a Zacks Rank #1 and an Earnings ESP of +3.50%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Baxter International Inc. (BAX - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #2.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>