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Edwards Lifesciences (EW) Gains on Innovation, Margin Growth
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Edwards Lifesciences' (EW - Free Report) untapped potential in emerging markets acts as a positive catalyst. A bullish long-term growth strategy buoys optimism on the stock. The stock carries a Zacks Rank #2 (Buy).
Edwards Lifesciences exited the fourth quarter of 2022 on a bullish note with better-than-expected earnings and revenues. The company also registered year-over-year growth on both fronts. The company’s TMTT segment registered strong growth driven by the continued adoption of the PASCAL platform in Europe.
During the quarter, the company initiated the launch of the PASCAL platform in the United States. Further, the growth within Surgical Structural Heart was aided by increased adoption of the company's premium RESILIA technologies around the world, including the recent launch of the company's MITRIS surgical mitral valve. Moreover, the expansion of both margins is encouraging.
Critical Care sales were up 13% on an underlying basis in the fourth quarter of 2022. Sales growth was driven by contributions from all product lines and regions led by HemoSphere and Smart Recovery.
In the company’s Smart Recovery portfolio, the adoption of FloTrac and ClearSight sensors featuring the unique hypotension prediction index algorithm RECONNECT remains strong. Moreover, Edwards Lifesciences registered strong demand for the company’s pressure monitoring devices used in the ICU due to elevated hospitalizations in the United States.
In the fourth quarter, the company’s Surgical Structural Heart sales improved 8.1% on an underlying basis. It witnessed strong global growth driven by the increased penetration of premium RESILIA products despite COVID challenges in certain regions.
The adoption of the MITRIS RESILIA valve in the United States increased in the fourth quarter. Built upon previous generations of proven mitral valve technology, MITRIS offers greater ease of use and is designed to facilitate potential future transcatheter interventions.
Edwards Lifesciences expects to maintain its leadership position in the global TAVR market through an 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 past year, Edwards Lifesciences has underperformed its industry. The stock has lost 39.8% compared with the 23.5% decline of the industry.
During the fourth quarter, TAVR procedure volumes were impacted by U.S. hospital staffing constraints and the holiday season slowdown. The choppy market conditions due to the continued foreign exchange impact and COVID-related hospital staffing issues are concerning.
We also remain worried about the significant challenges Edwards Lifesciences faced, owing to unfavorable foreign currency impact that has been affecting the company’s gross margin over the past few quarters. Per management, significant currency fluctuations could have a material effect on revenues, cost of sales and operational results.
Stiff competition in Edwards Lifesciences’ TAVR business continues to ail the company.
Other Key Picks
Some other top-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
AMN Healthcare has gained 3.3% against the industry’s 20.2% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.6%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 6.4%.
Cardinal Health has gained 44.2% against the industry’s 4.5% decline over the past year.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 19.6% against the industry’s 4.5% decline over the past year.
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Edwards Lifesciences (EW) Gains on Innovation, Margin Growth
Edwards Lifesciences' (EW - Free Report) untapped potential in emerging markets acts as a positive catalyst. A bullish long-term growth strategy buoys optimism on the stock. The stock carries a Zacks Rank #2 (Buy).
Edwards Lifesciences exited the fourth quarter of 2022 on a bullish note with better-than-expected earnings and revenues. The company also registered year-over-year growth on both fronts. The company’s TMTT segment registered strong growth driven by the continued adoption of the PASCAL platform in Europe.
During the quarter, the company initiated the launch of the PASCAL platform in the United States. Further, the growth within Surgical Structural Heart was aided by increased adoption of the company's premium RESILIA technologies around the world, including the recent launch of the company's MITRIS surgical mitral valve. Moreover, the expansion of both margins is encouraging.
Edwards Lifesciences Corporation Price
Edwards Lifesciences Corporation price | Edwards Lifesciences Corporation Quote
Critical Care sales were up 13% on an underlying basis in the fourth quarter of 2022. Sales growth was driven by contributions from all product lines and regions led by HemoSphere and Smart Recovery.
In the company’s Smart Recovery portfolio, the adoption of FloTrac and ClearSight sensors featuring the unique hypotension prediction index algorithm RECONNECT remains strong. Moreover, Edwards Lifesciences registered strong demand for the company’s pressure monitoring devices used in the ICU due to elevated hospitalizations in the United States.
In the fourth quarter, the company’s Surgical Structural Heart sales improved 8.1% on an underlying basis. It witnessed strong global growth driven by the increased penetration of premium RESILIA products despite COVID challenges in certain regions.
The adoption of the MITRIS RESILIA valve in the United States increased in the fourth quarter. Built upon previous generations of proven mitral valve technology, MITRIS offers greater ease of use and is designed to facilitate potential future transcatheter interventions.
Edwards Lifesciences expects to maintain its leadership position in the global TAVR market through an 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 past year, Edwards Lifesciences has underperformed its industry. The stock has lost 39.8% compared with the 23.5% decline of the industry.
During the fourth quarter, TAVR procedure volumes were impacted by U.S. hospital staffing constraints and the holiday season slowdown. The choppy market conditions due to the continued foreign exchange impact and COVID-related hospital staffing issues are concerning.
We also remain worried about the significant challenges Edwards Lifesciences faced, owing to unfavorable foreign currency impact that has been affecting the company’s gross margin over the past few quarters. Per management, significant currency fluctuations could have a material effect on revenues, cost of sales and operational results.
Stiff competition in Edwards Lifesciences’ TAVR business continues to ail the company.
Other Key Picks
Some other top-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has gained 3.3% against the industry’s 20.2% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.6%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 6.4%.
Cardinal Health has gained 44.2% against the industry’s 4.5% decline over the past year.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 19.6% against the industry’s 4.5% decline over the past year.