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What's in Store for Edwards Lifesciences (EW) in Q2 Earnings?
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Edwards Lifesciences Corporation (EW - Free Report) is scheduled to report second-quarter 2023 results on Jul 26.
In the last reported quarter, the company’s adjusted earnings per share of 62 cents exceeded the Zacks Consensus Estimate by 1.64%. The company’s earnings beat estimates in two of the trailing four quarters, met the same in one and missed in the other. EW has a trailing four-quarter earnings surprise of 1.24%, on average.
Let's see how things have shaped up prior to this announcement.
Factors at Play
Similar to the last reported quarter, Edwards Lifesciences is likely to have gained from its patient-focused innovation strategy. The strong therapy adoption of transcatheter heart valves is expected to have driven the majority of growth in the second quarter, aided by strong performance of the Critical Care arm and Transcatheter Heart Valves.
In Critical Care, continued demand for its state-of-the-art HemoSphere monitoring platform and Smart Recovery is likely to be reflected in the Q2 results. An increase in hospital visits with an improvement in the market scenario is likely to have benefited HemoSphere sales, thus adding to the top line. Growth is also expected to have been led by strong adoption of the company’s Acumen IQ sensor and finger cuff, featuring the Hypotension Prediction Index algorithm.
Our model predicts the segment’s second-quarter revenues to be $229.8 million, suggesting a 9.1% rise from the year-ago quarter’s reported figure.
Within the Transcatheter Aortic Valve Replacement (TAVR) arm, Edwards Lifesciences is likely to have witnessed continued growth in TAVR procedures across the United States and worldwide. The receipt of approval and launch of the SAPIEN 3 Ultra RESILIA valve in the United States is likely to have boosted revenues in the to-be-reported quarter.
Enrolment accelerated in the company’s PROGRESS clinical trials in evaluating patients with moderate aortic stenosis and alliance for next-generation TAVR technology — SAPIEN X4. These developments are likely to have boosted the company’s first-quarter sales within the business.
The company’s Transcatheter Mitral and Tricuspid Therapies segment’s PASCAL platform is likely to have maintained strong growth momentum in the second quarter, backed by strong momentum on a portfolio of differentiated therapies, positive pivotal trial results to support approvals and adoption, and favorable real-world clinical outcomes. Moreover, the company’s performance in the segment is expected to have been driven by the strong adoption of the PASCAL system in Europe as the company initiated a limited introduction of PASCAL PRECISION and continues its expansion into more centers in Europe.
Our model estimates the Transcatheter Heart Valves business to report $1.03 billion, implying a 10.5% improvement from the year-ago period.
Within Surgical Structural Heart, the company is expected to report strong Q2 growth, banking on the penetration of its premium products across all regions. Hospital staffing levels are expected to have improved through the Q2 months, leading to some development in procedures.
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 and it represents most of the mitral valve sales in this region.
In light of the new MOMENTIS clinical study, which is set to demonstrate the durability of the RESILIA valve in the mitral position, the market adoption of its newest premium technologies and surgical market growth, the segment’s second-quarter revenues are expected to have been strong.
Our model estimates the segment’s second-quarter revenues to be $227.6 million, suggesting a 0.4% drop from the year-ago quarter’s reported figure.
We note that, staffing shortages, which reduced hospital capacity, and choppy market conditions due to persistent foreign exchange impact are concerns. These are likely to have impeded the company’s growth in the quarter to be reported.
Q2 Estimates
The Zacks Consensus Estimate for the company’s second-quarter 2023 revenues is pegged at $1.50 billion, suggesting a rise of 9.5% from the year-ago reported figure.
The Zacks Consensus Estimate for second-quarter 2023 net earnings of 65 cents indicates 3.2% growth from the year-ago reported figure.
What Our Quantitative Model Predicts
Per our proven model, stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of beating estimates. This is not the case as you can see:
Earnings ESP: Edwards Lifesciences has an Earnings ESP of 0.00%. 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 #2.
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.
TG Therapeutics has an expected earnings growth rate of 37.7% for 2023. TGTX’s 2023 projected revenues of $87.65 million indicate an increase from the year-ago reported figure of $2.8 million.
Dentsply Sirona (XRAY - Free Report) has an Earnings ESP of +3.39% and a Zacks Rank of #2. Dentsply Sirona is scheduled to release second-quarter fiscal 2023 results on Aug 3.
XRAY’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other, the average beat being 10.47%. XRAY’s long-term expected growth rate is estimated to be 9.3%.
SiBone (SIBN - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #2. SiBone is scheduled to release second-quarter 2023 results on Aug 7.
SIBN’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, with the average surprise being 11.11%. The Zacks Consensus Estimate for SIBN’s second-quarter EPS indicates a 22.2% improvement from the year-ago reported figure.
Image: Bigstock
What's in Store for Edwards Lifesciences (EW) in Q2 Earnings?
Edwards Lifesciences Corporation (EW - Free Report) is scheduled to report second-quarter 2023 results on Jul 26.
In the last reported quarter, the company’s adjusted earnings per share of 62 cents exceeded the Zacks Consensus Estimate by 1.64%. The company’s earnings beat estimates in two of the trailing four quarters, met the same in one and missed in the other. EW has a trailing four-quarter earnings surprise of 1.24%, on average.
Let's see how things have shaped up prior to this announcement.
Factors at Play
Similar to the last reported quarter, Edwards Lifesciences is likely to have gained from its patient-focused innovation strategy. The strong therapy adoption of transcatheter heart valves is expected to have driven the majority of growth in the second quarter, aided by strong performance of the Critical Care arm and Transcatheter Heart Valves.
In Critical Care, continued demand for its state-of-the-art HemoSphere monitoring platform and Smart Recovery is likely to be reflected in the Q2 results. An increase in hospital visits with an improvement in the market scenario is likely to have benefited HemoSphere sales, thus adding to the top line. Growth is also expected to have been led by strong adoption of the company’s Acumen IQ sensor and finger cuff, featuring the Hypotension Prediction Index algorithm.
Our model predicts the segment’s second-quarter revenues to be $229.8 million, suggesting a 9.1% rise from the year-ago quarter’s reported figure.
Within the Transcatheter Aortic Valve Replacement (TAVR) arm, Edwards Lifesciences is likely to have witnessed continued growth in TAVR procedures across the United States and worldwide. The receipt of approval and launch of the SAPIEN 3 Ultra RESILIA valve in the United States is likely to have boosted revenues in the to-be-reported quarter.
Edwards Lifesciences Corporation Price
Edwards Lifesciences Corporation price | Edwards Lifesciences Corporation Quote
Enrolment accelerated in the company’s PROGRESS clinical trials in evaluating patients with moderate aortic stenosis and alliance for next-generation TAVR technology — SAPIEN X4. These developments are likely to have boosted the company’s first-quarter sales within the business.
The company’s Transcatheter Mitral and Tricuspid Therapies segment’s PASCAL platform is likely to have maintained strong growth momentum in the second quarter, backed by strong momentum on a portfolio of differentiated therapies, positive pivotal trial results to support approvals and adoption, and favorable real-world clinical outcomes. Moreover, the company’s performance in the segment is expected to have been driven by the strong adoption of the PASCAL system in Europe as the company initiated a limited introduction of PASCAL PRECISION and continues its expansion into more centers in Europe.
Our model estimates the Transcatheter Heart Valves business to report $1.03 billion, implying a 10.5% improvement from the year-ago period.
Within Surgical Structural Heart, the company is expected to report strong Q2 growth, banking on the penetration of its premium products across all regions. Hospital staffing levels are expected to have improved through the Q2 months, leading to some development in procedures.
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 and it represents most of the mitral valve sales in this region.
In light of the new MOMENTIS clinical study, which is set to demonstrate the durability of the RESILIA valve in the mitral position, the market adoption of its newest premium technologies and surgical market growth, the segment’s second-quarter revenues are expected to have been strong.
Our model estimates the segment’s second-quarter revenues to be $227.6 million, suggesting a 0.4% drop from the year-ago quarter’s reported figure.
We note that, staffing shortages, which reduced hospital capacity, and choppy market conditions due to persistent foreign exchange impact are concerns. These are likely to have impeded the company’s growth in the quarter to be reported.
Q2 Estimates
The Zacks Consensus Estimate for the company’s second-quarter 2023 revenues is pegged at $1.50 billion, suggesting a rise of 9.5% from the year-ago reported figure.
The Zacks Consensus Estimate for second-quarter 2023 net earnings of 65 cents indicates 3.2% growth from the year-ago reported figure.
What Our Quantitative Model Predicts
Per our proven model, stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of beating estimates. This is not the case as you can see:
Earnings ESP: Edwards Lifesciences has an Earnings ESP of 0.00%. 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 #2.
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.
TG Therapeutics (TGTX - Free Report) has an Earnings ESP of +12.00% and a Zacks Rank of #2. The company is expected to release second-quarter 2023 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
TG Therapeutics has an expected earnings growth rate of 37.7% for 2023. TGTX’s 2023 projected revenues of $87.65 million indicate an increase from the year-ago reported figure of $2.8 million.
Dentsply Sirona (XRAY - Free Report) has an Earnings ESP of +3.39% and a Zacks Rank of #2. Dentsply Sirona is scheduled to release second-quarter fiscal 2023 results on Aug 3.
XRAY’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other, the average beat being 10.47%. XRAY’s long-term expected growth rate is estimated to be 9.3%.
SiBone (SIBN - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #2. SiBone is scheduled to release second-quarter 2023 results on Aug 7.
SIBN’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, with the average surprise being 11.11%. The Zacks Consensus Estimate for SIBN’s second-quarter EPS indicates a 22.2% improvement from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.