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Edwards Lifesciences (EW) to Post Q2 Earnings: What's in Store?

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Edwards Lifesciences Corporation (EW - Free Report) is slated to report second-quarter 2022 results on Jul 28, after market close.

In the last reported quarter, the company’s adjusted earnings per share of 60 cents beat the Zacks Consensus Estimate by 3.5%. However, the company beat earnings estimates in three of the trailing four quarters and missed once, the average surprise being 3.61%.

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

Factors at Play

Critical Care

Edwards Lifesciences is likely to have gained from the continued demand of its state-of-the-art HemoSphere monitoring platform. As economies return to pre-pandemic levels, amid ongoing COVID-19 concerns, the increased hospital visits are likely to have benefited HemoSphere sales, thus adding to the top line. In the prior quarter, the company’s portfolio of Smart Recovery sensors and TruWave disposable pressure monitoring devices supported the increased number of patients in the Intensive Care Unit (ICU). We believe this trend to have continued in the second quarter, benefiting the segment’s results.

Edwards Lifesciences Corporation Price and EPS Surprise

 

Edwards Lifesciences Corporation Price and EPS Surprise

Edwards Lifesciences Corporation price-eps-surprise | Edwards Lifesciences Corporation Quote

 

The Zacks Consensus Estimate for the segment’s second-quarter revenues is pegged at $213 million, implying a decline of 10.1% from the year-ago quarter’s reported figure.

Surgical Structural Heart

Edwards Lifesciences is expected to have benefitted from the market adoption of its latest premium technologies. The RESILIA tissue valves are likely to see robust global adoption backed by encouraging feedback from U.S. surgeons. By March end, the company announced the receipt of FDA approval and subsequent commercial launch of the MITRIS RESILIA valve. This launch adds to the company’s existing portfolio of durable RESILIA tissue products and will facilitate potential future transcatheter interventions. We expect this launch to have driven the company’s performance in the upcoming second quarter.

The Zacks Consensus Estimate for the segment’s second-quarter revenues is pegged at $229 million, implying a rise of 6.5% from the year-ago quarter’s reported figure.

Other Factors at Play

Within the Transcatheter Aortic Valve Replacement (TAVR) arm, the company is likely to have witnessed continued growth in TAVR procedures across the United States and worldwide. Edwards Lifesciences is focused on expanding the TAVR adoption in Japan post the receipt of reimbursement approval in 2021, for treating patients at low surgical risk. Further, with the ongoing rebound in treatment rates given the abating effects of the pandemic, the company is likely to have witnessed robust uptake of the SAPIEN platform, as it did in the previous quarter. In the last reported quarter, the company noted that it remained on track to initiate the treatment of patients with the next-generation TAVR technology, SAPIEN X4, in its ALLIANCE pivotal trial. We expect these developments to have contributed to the segment’s Q2 performance.

The Zacks Consensus Estimate for the segment’s second-quarter revenues is pegged at $925 million, implying a surge of 2.6% from the year-ago quarter’s reported figure.

Similar to the last-reported quarter, the company’s Transcatheter Mitral and Tricuspid Therapies (TMTT) segment’s PASCAL platform is likely to have maintained strong growth momentum in Q2. This rally is expected to have been driven by the growing body of clinical evidence for PASCAL in the tricuspid position. Further, the company continues to make meaningful progress in enrolling its TRISCEND II pivotal trial for the EVOQUE system.

The Zacks Consensus Estimate for the segment’s second-quarter revenues is pegged at $32.04 million, suggesting an uptick of 45.6% from the year-ago quarter’s reported figure.

Q2 Estimates

The Zacks Consensus Estimate for the company’s second-quarter 2022 revenues is pegged at $1.40 billion, suggesting a rise of 1.66% from the year-ago reported figure.

The Zacks Consensus Estimate for its second-quarter 2022 net earnings of 63 cents, indicates a 1.6% decline from the year-ago reported figure.

What Our Model Suggests

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here as you can see:

Earnings ESP: The company has an Earnings ESP of -1.10%. 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 stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.

Alcon Inc. (ALC - Free Report) has an Earnings ESP of +5.07% and a Zacks Rank of #1. Alcon is expected to release second-quarter 2022 results on Aug 16. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alcon’s long-term earnings growth rate is estimated at 14.3%. ALC’s earnings yield of 3.24% compared with the industry’s (8.79%).

Glaukos Corporation (GKOS - Free Report) currently has an Earnings ESP of +2.27% and a Zacks Rank of #1. Glaukos is scheduled to release second-quarter 2022 results on Aug 3.

GKOS’ 2023 earnings growth rate is estimated at 15.2%.

BrainsWay Ltd. (BWAY - Free Report) currently has an Earnings ESP of +33.33% and a Zacks Rank of #2. BrainsWay is expected to release second-quarter fiscal 2022 results on Aug 10.

BWAY’s 2023 earnings growth rate is estimated to be 16.7%.

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

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