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Edwards Lifesciences (EW) Up 7.5% Since Q4 Earnings Release
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Shares of Edwards Lifesciences Corporation (EW - Free Report) have rallied 7.5% compared to the industry's rise of 7.6% since its fourth-quarter 2021 earnings release on Jan 26.
The renowned global medical device company has a market capitalization of $72.54 billion.
This Zacks Rank #2 (Buy) stock has a favorable Growth Score of B. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
The rally was largely driven by Edwards Lifesciences’ year-over-year growth in revenues in the fourth quarter of 2021. Continued strong adoption of the SAPIEN 3 Ultra platform and the PASCAL system across Europe looks encouraging as well.
Let’s take a quick look at the important catalysts to understand this positive trend.
Factors at Play
Q4 Upsides: Edwards Lifesciences registered year-over-year growth in revenues driven by strong sales across all four product groups. Continued strong adoption of the SAPIEN 3 Ultra platform and the PASCAL system across Europe looks encouraging as well. Increased adoption of the premium RESILIA technologies worldwide buoys optimism. Strong HemoSphere sales in the United States look impressive. The company reaffirmed its full-year 2022 outlook, which is indicative of the continuation of this bullish trend. The company also expects to maintain robust segmental sales growth over the long term. Strong growth prospects in emerging economies along with strong solvency and capital structure are added benefits.
TAVR Holds Potential: The TAVR segment, during the fourth quarter, has performed well despite the pandemic-led business challenges. The segment registered 12.3% growth from the prior-year figure on a reported basis and 13.2% on an underlying basis. The growth was primarily driven by increased adoption of the company’s technologies, including the SAPIEN platform. Customer adoption for the SAPIEN 3 Ultra platform remains strong due to its low complication rates and easy-to-use design. During the fourth quarter, strong TAVR adoption continued in Japan.
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In the fourth quarter, Edwards Lifesciences received FDA approval for the ALLIANCE pivotal trial to study its next-generation TAVR device, SAPIEN X4. Additionally, the company received FDA approval to use SAPIEN 3 with its Alterra adaptive pre-stent for congenital heart patients.
Bullish Guidance: The company has initiated its first-quarter 2022 guidance.
For the first quarter of 2022, the company projects total sales in the range of $1.27-$1.35 billion. Adjusted earnings per share (EPS) are expected in the band of 54-62 cents.
Full-year 2022 sales are expected to grow at a low double-digit rate to $5.50-$6.00 billion. The company continues to expect full-year 2022 adjusted earnings per share in the range of $2.50-$2.65.
Favorable Parameters
For 2022, Edwards LifeSciences has an expected earnings growth rate of 15.52% compared with the industry’s expected growth rate of 10.54%.
Edwards LifeSciences has a current cash flow growth rate of 20.11% compared with the industry’s 12.4%. The stock’s return on equity (ROE) stands at 26.53% versus the industry’s (19.38%).
Other Key Picks
A few other top-ranked stocks in the broader medical space are McKesson Corporation (MCK - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
McKesson, carrying a Zacks Rank #2, reported third-quarter fiscal 2022 adjusted EPS of $6.15, which beat the Zacks Consensus Estimate of $5.38 by 14.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 57.4% compared with the industry’s 11.2% growth in the past year.
AMN Healthcare, carrying a Zacks Rank #1, has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 44.4% versus the 52.7% industry decline.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in the trailing four quarters, the average surprise being 66.9%.
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Edwards Lifesciences (EW) Up 7.5% Since Q4 Earnings Release
Shares of Edwards Lifesciences Corporation (EW - Free Report) have rallied 7.5% compared to the industry's rise of 7.6% since its fourth-quarter 2021 earnings release on Jan 26.
The renowned global medical device company has a market capitalization of $72.54 billion.
This Zacks Rank #2 (Buy) stock has a favorable Growth Score of B. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
The rally was largely driven by Edwards Lifesciences’ year-over-year growth in revenues in the fourth quarter of 2021. Continued strong adoption of the SAPIEN 3 Ultra platform and the PASCAL system across Europe looks encouraging as well.
Let’s take a quick look at the important catalysts to understand this positive trend.
Factors at Play
Q4 Upsides: Edwards Lifesciences registered year-over-year growth in revenues driven by strong sales across all four product groups. Continued strong adoption of the SAPIEN 3 Ultra platform and the PASCAL system across Europe looks encouraging as well. Increased adoption of the premium RESILIA technologies worldwide buoys optimism. Strong HemoSphere sales in the United States look impressive. The company reaffirmed its full-year 2022 outlook, which is indicative of the continuation of this bullish trend. The company also expects to maintain robust segmental sales growth over the long term. Strong growth prospects in emerging economies along with strong solvency and capital structure are added benefits.
TAVR Holds Potential: The TAVR segment, during the fourth quarter, has performed well despite the pandemic-led business challenges. The segment registered 12.3% growth from the prior-year figure on a reported basis and 13.2% on an underlying basis. The growth was primarily driven by increased adoption of the company’s technologies, including the SAPIEN platform. Customer adoption for the SAPIEN 3 Ultra platform remains strong due to its low complication rates and easy-to-use design. During the fourth quarter, strong TAVR adoption continued in Japan.
In the fourth quarter, Edwards Lifesciences received FDA approval for the ALLIANCE pivotal trial to study its next-generation TAVR device, SAPIEN X4. Additionally, the company received FDA approval to use SAPIEN 3 with its Alterra adaptive pre-stent for congenital heart patients.
Bullish Guidance: The company has initiated its first-quarter 2022 guidance.
For the first quarter of 2022, the company projects total sales in the range of $1.27-$1.35 billion. Adjusted earnings per share (EPS) are expected in the band of 54-62 cents.
Full-year 2022 sales are expected to grow at a low double-digit rate to $5.50-$6.00 billion. The company continues to expect full-year 2022 adjusted earnings per share in the range of $2.50-$2.65.
Favorable Parameters
For 2022, Edwards LifeSciences has an expected earnings growth rate of 15.52% compared with the industry’s expected growth rate of 10.54%.
Edwards LifeSciences has a current cash flow growth rate of 20.11% compared with the industry’s 12.4%. The stock’s return on equity (ROE) stands at 26.53% versus the industry’s (19.38%).
Other Key Picks
A few other top-ranked stocks in the broader medical space are McKesson Corporation (MCK - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
McKesson, carrying a Zacks Rank #2, reported third-quarter fiscal 2022 adjusted EPS of $6.15, which beat the Zacks Consensus Estimate of $5.38 by 14.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 57.4% compared with the industry’s 11.2% growth in the past year.
AMN Healthcare, carrying a Zacks Rank #1, has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 44.4% versus the 52.7% industry decline.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in the trailing four quarters, the average surprise being 66.9%.