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What's in Store for Edwards Lifesciences (EW) in Q3 Earnings?
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Edwards Lifesciences Corporation (EW - Free Report) is expected to report third-quarter 2022 results soon.
In the last reported quarter, the company’s adjusted earnings per share of 63 cents came in line with the Zacks Consensus Estimate. The company beat earnings estimates in two of the trailing four quarters, met estimates in one and missed once, the average negative surprise being 0.48%.
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 for 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. We believe this trend to have continued in the third quarter, benefiting the segment’s results.
Our model shows a 4% year-over-year decline in Critical Care revenues in the third quarter.
The Zacks Consensus Estimate for the segment’s third-quarter revenues is pegged at $209 million, implying a decline of 1.9% from the year-ago quarter’s reported figure.
Surgical Structural Heart
Edwards Lifesciences is likely to have gained from the increased penetration of the company’s premium RESILIA products. Edwards Lifesciences has seen strong adoption of the MITRIS RESILIA valve in the United States since its initial launch in April. Based on the commercial success of INSPIRIS, as well as the benefits of the innovative RESILIA tissue technology, Q3 revenues within this segment are expected to have been strong for Edwards Lifesciences.
Edwards Lifesciences Corporation Price and EPS Surprise
However, sales headwinds from the planned discontinuation of certain noncore cannula products, as well as the COVID shutdown in China, combined with the ongoing staffing shortages in healthcare and inflationary pressure, are expected to have marred revenues significantly.
Our model shows a 3.5% year-over-year decline in Surgical Structural Heart revenues in the third quarter.
The Zacks Consensus Estimate for the segment’s third-quarter revenues is pegged at $219 million, implying a decline of 0.9% 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. Despite the ongoing industry-wide challenges like U.S. hospital staffing constraints and foreign exchange headwinds, the company is expected to have reported sales growth in this business based on focused R&D. For full-year 2022, it expects R&D expenses to be between 17% and 18% of sales as it develops new product pipeline and generates evidence to support TAVR and TMTT. This is likely to have boosted production and sales in Q3 within this business.
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.
The company’s Transcatheter Mitral and Tricuspid Therapies segment’s PASCAL platform is likely to have maintained strong growth momentum in Q3. 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.
Q3 Estimates
The Zacks Consensus Estimate for the company’s third-quarter 2022 revenues is pegged at $1.34 billion, suggesting a rise of 2.1% from the year-ago reported figure.
The Zacks Consensus Estimate for its third-quarter 2022 net earnings of 62 cents indicates 14.8% growth 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. This is exactly the case here as you can see:
Earnings ESP: The company has an Earnings ESP of +2.81%. 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.
Other Stocks Worth a Look
Here are a few stocks worth considering as these also have the right combination of elements to beat on earnings this reporting cycle.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana (HUM - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of #1. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
Image: Bigstock
What's in Store for Edwards Lifesciences (EW) in Q3 Earnings?
Edwards Lifesciences Corporation (EW - Free Report) is expected to report third-quarter 2022 results soon.
In the last reported quarter, the company’s adjusted earnings per share of 63 cents came in line with the Zacks Consensus Estimate. The company beat earnings estimates in two of the trailing four quarters, met estimates in one and missed once, the average negative surprise being 0.48%.
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 for 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. We believe this trend to have continued in the third quarter, benefiting the segment’s results.
Our model shows a 4% year-over-year decline in Critical Care revenues in the third quarter.
The Zacks Consensus Estimate for the segment’s third-quarter revenues is pegged at $209 million, implying a decline of 1.9% from the year-ago quarter’s reported figure.
Surgical Structural Heart
Edwards Lifesciences is likely to have gained from the increased penetration of the company’s premium RESILIA products. Edwards Lifesciences has seen strong adoption of the MITRIS RESILIA valve in the United States since its initial launch in April. Based on the commercial success of INSPIRIS, as well as the benefits of the innovative RESILIA tissue technology, Q3 revenues within this segment are expected to have been strong for Edwards Lifesciences.
Edwards Lifesciences Corporation Price and EPS Surprise
Edwards Lifesciences Corporation price-eps-surprise | Edwards Lifesciences Corporation Quote
However, sales headwinds from the planned discontinuation of certain noncore cannula products, as well as the COVID shutdown in China, combined with the ongoing staffing shortages in healthcare and inflationary pressure, are expected to have marred revenues significantly.
Our model shows a 3.5% year-over-year decline in Surgical Structural Heart revenues in the third quarter.
The Zacks Consensus Estimate for the segment’s third-quarter revenues is pegged at $219 million, implying a decline of 0.9% 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. Despite the ongoing industry-wide challenges like U.S. hospital staffing constraints and foreign exchange headwinds, the company is expected to have reported sales growth in this business based on focused R&D. For full-year 2022, it expects R&D expenses to be between 17% and 18% of sales as it develops new product pipeline and generates evidence to support TAVR and TMTT. This is likely to have boosted production and sales in Q3 within this business.
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.
The company’s Transcatheter Mitral and Tricuspid Therapies segment’s PASCAL platform is likely to have maintained strong growth momentum in Q3. 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.
Q3 Estimates
The Zacks Consensus Estimate for the company’s third-quarter 2022 revenues is pegged at $1.34 billion, suggesting a rise of 2.1% from the year-ago reported figure.
The Zacks Consensus Estimate for its third-quarter 2022 net earnings of 62 cents indicates 14.8% growth 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. This is exactly the case here as you can see:
Earnings ESP: The company has an Earnings ESP of +2.81%. 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.
Other Stocks Worth a Look
Here are a few stocks worth considering as these also have the right combination of elements to beat on earnings this reporting cycle.
Charles River Laboratories International (CRL - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of #3. The company will release third-quarter 2022 results on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana (HUM - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of #1. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.