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Edwards Lifesciences' (EW) Global Sales Robust Amid Cost Woes
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Edwards Lifesciences (EW - Free Report) is well poised for growth in the coming months, backed by continued strong adoption of the SAPIEN 3 Ultra platform and the PASCAL system across Europe. Strong HemoSphere sales in the United States look impressive. However, downsides may result from foreign exchange fluctuations and stiff competition. Currently, Edwards Lifesciences carries a Zacks Rank #3 (Hold).
Over the past six months, Edwards Lifesciences has outperformed its industry. The stock has gained 10.7% against 7.5% fall of the industry.
Edwards Lifesciences registered year-over-year growth in fourth-quarter 2021 revenues, driven by strong sales growth across all four product groups. Continued strong adoption of the SAPIEN 3 Ultra platform and the PASCAL system across Europe are encouraging. Increased worldwide adoption of the premium RESILIA technologies buoys optimism.
Strong growth prospects in emerging economies, along with strong solvency and capital structure, are added benefits.
Edwards Lifesciences’ Critical Care segment registered growth in the fourth quarter compared with the year-ago quarter, both on a reported and on an underlying basis. The revenue uptick resulted from balanced contributions from all product lines, led by HemoSphere sales in the United States as hospital capital spending resumed.
Edwards Lifesciences currently expects to maintain its leadership position in the global TAVR market through increased focus on expanding patient access by actively leveraging current valve platforms for additional indications. This includes developing next-generation valve platforms and maintaining trusted relationships with clinicians, payers and regulators.
On the flip side, in the last-reported quarter, Edwards Lifesciences top line lagged the Zacks Consensus Estimate by 7.3%, while its earnings missed the consensus mark by 0.9%. The company’s selling, general and administrative expenses rose 25.3% year over year, primarily driven by personnel-related costs and increased commercial activities compared with the COVID-hit prior year.
Research and development expenditures were up 18.9% year over year. This increase was driven by the resumption of medical congresses and commercial activities compared to the COVID-impacted prior year, as well as the addition of personnel in preparation for the company's product launches. These developments drove operating costs by 22.9%. The rise in operating costs is building pressure on the company’s bottom line.
Stiff competition in Edwards Lifesciences’ THV business continues to ail the company. Persistent forex woes also do not bode well.
Key Picks
A few better-ranked stocks in the broader medical space are Owens & Minor, Inc. (OMI - Free Report) , NextGen Healthcare, Inc. and McKesson Corporation (MCK - Free Report) .
Owens & Minor has a long-term earnings growth rate of 8.8%. Owens & Minor’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 29.5%, on average. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Owens & Minor has outperformed the industry over the past year. OMI has gained 9.8% against a 15.7% industry decline in the said period.
NextGen has an estimated long-term growth rate of 5%. NextGen’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.5%. It currently carries a Zacks Rank #2.
NextGen has outperformed the industry over the past year. NXGN has gained 15.5% compared with the industry’s 36.3% growth over the past year.
McKesson has a long-term earnings growth rate of 11.8%. McKesson’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 20.6%, on average. It presently carries a Zacks Rank #2.
McKesson has outperformed the industry over the past year. MCK has gained 58.9% in the said period compared with 8.9% growth of the industry.
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Edwards Lifesciences' (EW) Global Sales Robust Amid Cost Woes
Edwards Lifesciences (EW - Free Report) is well poised for growth in the coming months, backed by continued strong adoption of the SAPIEN 3 Ultra platform and the PASCAL system across Europe. Strong HemoSphere sales in the United States look impressive. However, downsides may result from foreign exchange fluctuations and stiff competition. Currently, Edwards Lifesciences carries a Zacks Rank #3 (Hold).
Over the past six months, Edwards Lifesciences has outperformed its industry. The stock has gained 10.7% against 7.5% fall of the industry.
Edwards Lifesciences registered year-over-year growth in fourth-quarter 2021 revenues, driven by strong sales growth across all four product groups. Continued strong adoption of the SAPIEN 3 Ultra platform and the PASCAL system across Europe are encouraging. Increased worldwide adoption of the premium RESILIA technologies buoys optimism.
Strong growth prospects in emerging economies, along with strong solvency and capital structure, are added benefits.
Edwards Lifesciences’ Critical Care segment registered growth in the fourth quarter compared with the year-ago quarter, both on a reported and on an underlying basis. The revenue uptick resulted from balanced contributions from all product lines, led by HemoSphere sales in the United States as hospital capital spending resumed.
Edwards Lifesciences currently expects to maintain its leadership position in the global TAVR market through increased focus on expanding patient access by actively leveraging current valve platforms for additional indications. This includes developing next-generation valve platforms and maintaining trusted relationships with clinicians, payers and regulators.
Edwards Lifesciences Corporation Price
Edwards Lifesciences Corporation price | Edwards Lifesciences Corporation Quote
On the flip side, in the last-reported quarter, Edwards Lifesciences top line lagged the Zacks Consensus Estimate by 7.3%, while its earnings missed the consensus mark by 0.9%. The company’s selling, general and administrative expenses rose 25.3% year over year, primarily driven by personnel-related costs and increased commercial activities compared with the COVID-hit prior year.
Research and development expenditures were up 18.9% year over year. This increase was driven by the resumption of medical congresses and commercial activities compared to the COVID-impacted prior year, as well as the addition of personnel in preparation for the company's product launches. These developments drove operating costs by 22.9%. The rise in operating costs is building pressure on the company’s bottom line.
Stiff competition in Edwards Lifesciences’ THV business continues to ail the company. Persistent forex woes also do not bode well.
Key Picks
A few better-ranked stocks in the broader medical space are Owens & Minor, Inc. (OMI - Free Report) , NextGen Healthcare, Inc. and McKesson Corporation (MCK - Free Report) .
Owens & Minor has a long-term earnings growth rate of 8.8%. Owens & Minor’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 29.5%, on average. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Owens & Minor has outperformed the industry over the past year. OMI has gained 9.8% against a 15.7% industry decline in the said period.
NextGen has an estimated long-term growth rate of 5%. NextGen’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.5%. It currently carries a Zacks Rank #2.
NextGen has outperformed the industry over the past year. NXGN has gained 15.5% compared with the industry’s 36.3% growth over the past year.
McKesson has a long-term earnings growth rate of 11.8%. McKesson’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 20.6%, on average. It presently carries a Zacks Rank #2.
McKesson has outperformed the industry over the past year. MCK has gained 58.9% in the said period compared with 8.9% growth of the industry.