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Edwards Lifesciences (EW) to Post Q1 Earnings: What's in Store?

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Edwards Lifesciences Corporation (EW - Free Report) is slated to report first-quarter 2022 results on Apr 26, after market close.

In the last reported quarter, the company’s adjusted earnings per share of 51 cents lagged the Zacks Consensus Estimate by 7.3%. However, the company beat earnings estimates in three of the trailing four quarters and missed once, the average surprise being 6.47%.

Let's see how things have shaped up prior to this announcement.

Factors at Play

Critical Care

During the last-reported fourth quarter, Edwards Lifesciences registered strong growth in HemoSphere orders as hospital spending resumed in the United States. We believe this to have continued in the first quarter of 2022, banking on continued market reopening and increased hospital visits even amid the emergence of new COVID-19 variants, thus adding to the top line.

Moreover, similar to the last quarter, we believe Edwards Lifesciences is likely to have registered high demand for its TruWave disposable pressure monitoring devices used in the ICU due to the elevated COVID hospitalizations in the United States and Europe along with recovery in ClearSight non-invasive finger cuff demand. This is expected to have contributed to first-quarter revenues.

The Zacks Consensus Estimate for the segment’s first-quarter revenues is pegged at $203 million, implying a rise of 3.6% from the year-ago quarter’s reported figure.

Surgical Structural Heart

Edwards Lifesciences is optimistic about robust global adoption of its premium RESILIA tissue valves within the Surgical Structural Heart Group, including the INSPIRIS aortic surgical valve and the KONECT aortic valve conduit. The INSPIRIS valve utilization, similar to the previous quarter, is expected to have continued with strong sales momentum in the first quarter, banking on the European economic value study, which demonstrated a cost reduction using INSPIRIS versus mechanical valves.

Edwards Lifesciences Corporation Price and EPS Surprise

Similar to the last-reported quarter, Edwards Lifesciences is likely to have registered strong adoption of Edwards RESILIA tissue valves as a growing body of real-world evidence increasingly supports this advanced tissue treatment, as demonstrated by the two studies presented at the Society of Thoracic Surgeons Conference. We believe the adoption of RESILIA tissue valves will be further bolstered by the four-year mitral data from the COMMENCE clinical trial as well as the growing body of RESILIA clinical evidence, which demonstrated excellent durability of this tissue technology, even in the high-pressure mitral position. This is expected to have contributed significantly to first-quarter revenues.

The Zacks Consensus Estimate for the segment’s first-quarter revenues is pegged at $217 million, implying a rise of 1.9% from the year-ago quarter’s reported figure.

Other Factors at Play

Within the Transcatheter Aortic Valve Replacement (TAVR) arm, the company is expected to have continued to record increased global sales in the first quarter on robust adoption of the SAPIEN 3 Ultra platform led by its low complication rates and easy-to-use design. The company recently received the FDA approval for the ALLIANCE pivotal trial to study its next-generation TAVR device, SAPIEN X4. Additionally, the company received the FDA approval to use SAPIEN 3 with its Alterra adaptive pre-stent for congenital heart patients. These developments are expected to have contributed significantly to the company’s first-quarter revenue growth.

The Zacks Consensus Estimate for the segment’s first-quarter revenues is pegged at $871 million, implying a surge of 9.9% from the year-ago quarter’s reported figure.

The company’s Transcatheter Mitral and Tricuspid Therapies (TMTT) segment’s PASCAL transcatheter valve repair system and the newly-introduced PASCAL Ace are likely to have maintained strong momentum in the first quarter. In the fourth quarter, the company completed enrollment in the CLASP IID pivotal trial and is on track to present data in the second half of 2022. Moreover, PASCAL system 30-day favorable outcomes presented at the PCR London Valves conference in the fourth quarter are also expected to have boosted the company’s TMTT segment revenue growth.

Further, the company continues to make meaningful progress in enrolling its two tricuspid pivotal trials -- the TRISCEND II pivotal trial for the EVOQUE system and the CLASP IITR pivotal trial with PASCAL system in patients with symptomatic severe tricuspid regurgitation. These developments are likely to have contributed to the first-quarter top line.

The Zacks Consensus Estimate for the segment’s first-quarter revenues is pegged at $29.98 million, implying an uptick of 77.8% from the year-ago quarter’s reported figure.

The Estimate Picture

The Zacks Consensus Estimate for the company’s first-quarter 2022 revenues is pegged at $1.31 billion, suggesting an improvement of 7.6% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for its first-quarter 2022 earnings is pinned at 58 cents, indicating a rise of 7.4% from the year-ago quarter’s reported figure.

What Our Model Suggests

Our proven model predicts an earnings beat for Edwards Lifesciences this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Edwards Lifesciences has an Earnings ESP of +0.15%. 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 #3.

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

Lucira Health (LHDX - Free Report) has an Earnings ESP of +485.72% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s current-year P/E of 3.73x trades significantly cheaper than the S&P 500 Index’s 19.36x.

NanoString Technologies, Inc. (NSTG - Free Report) has an Earnings ESP of +1.53% and a Zacks Rank of 2.

NanoString Technologies’ 2023 earnings growth rate is estimated at 35.1%. NSTG’s revenue growth rate for 2023 is expected at 41.83%.

Meridian Bioscience (VIVO - Free Report) has an Earnings ESP of +26.32% and a Zacks Rank of 2.

Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s 2022 revenue growth rate is expected to be 6.2%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.