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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 scheduled to report third-quarter 2023 results on Oct 25 after the market close.
In the last reported quarter, the company’s adjusted earnings per share of 66 cents exceeded the Zacks Consensus Estimate by 1.54%. The company’s earnings beat estimates in three of the trailing four quarters and missed in the other. EW has a trailing four-quarter earnings surprise of 1.62% on average.
Let's see how things have shaped up before 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 third quarter, aided by consistent 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 will likely be reflected in the Q3 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. The company is also expected to register strong growth with its Smart Recovery portfolio and healthy adoption of its Acumen IQ sensor.
Our model predicts the segment’s third-quarter revenues to be $224.5 million, suggesting an 8.3% 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 continued strong demand for the company’s SAPIEN platform is expected to have acted as the primary growth factor. More specifically, in the United States, the company’s third-quarter TAVR sales are expected to have been boosted by improved hospital staffing levels and the continued successful launch of SAPIEN 3 Ultra RESILIA.
Meanwhile, the company is progressing with its ALLIANCE pivotal trial designed to study the next-generation TAVR technology — SAPIEN X4. These developments are likely to have boosted the company’s third-quarter sales within the business.
Edwards Lifesciences Corporation Price and EPS Surprise
Outside the United States, sales growth is projected to be driven by broad-based adoption of the company’s SAPIEN platform.
However, like the last reported quarter, lower-than-expected market growth and competitive trialing in Japan might have dented the performance in the third quarter.
The company’s Transcatheter Mitral and Tricuspid Therapies (TMTT) segment’s PASCAL platform is likely to have maintained strong growth momentum in the third 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 differentiated PASCAL Precision platform across the United States and Europe.
Our model estimates the Transcatheter Heart Valves business to report $1.01 billion, implying a 12.8% improvement from the year-ago period.
Within Surgical Structural Heart, the company is expected to report strong Q3 growth, banking on the penetration of its premium products across all regions. Hospital staffing levels are expected to have improved through the Q3 months, leading to some procedure development.
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. 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 latest premium technologies and surgical market growth, the segment’s third-quarter revenues are expected to have been strong.
Our model estimates the segment’s third-quarter revenues to be $247.9 million, suggesting a 12.8% rise 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.
Q3 Estimates
The Zacks Consensus Estimate for the company’s third-quarter 2023 revenues is pegged at $1.48 billion, suggesting a rise of 12.4% from the year-ago reported figure.
The Zacks Consensus Estimate for third-quarter 2023 net earnings of 59 cents indicates a 3.3% decline from the year-ago reported figure.
What Our Quantitative Model Predicts
Per our proven model, stocks with the combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of beating estimates. This is exactly the case here, as you can see:
Earnings ESP: Edwards Lifesciences has an Earnings ESP of +3.06%. 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.
Other Stocks Worth a Look
Here are some other medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.
LGND’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 52.47%. The Zacks Consensus Estimate for Ligand Pharmaceuticals’ third-quarter EPS indicates an increase of 65.9% from the year-ago reported figure.
Spero Therapeutics (SPRO - Free Report) currently has an Earnings ESP of +60.00% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results shortly.
SPRO’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 72.4%. The Zacks Consensus Estimate for Spero Therapeutics’ fiscal 2023 third-quarter loss per share indicates an improvement of 54.6% from the year-ago reported figure.
Inspire Medical Systems (INSP - Free Report) has an Earnings ESP of +29.81% and a Zacks Rank #3. The company is expected to release third-quarter 2023 results on Nov 7, 2023.
INSP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.61%. The Zacks Consensus Estimate for Inspire Medical’s third-quarter 2023 EPS implies an increase of 11.7% from the year-ago reported figure.
Image: Bigstock
What's in Store for Edwards Lifesciences (EW) in Q3 Earnings?
Edwards Lifesciences Corporation (EW - Free Report) is scheduled to report third-quarter 2023 results on Oct 25 after the market close.
In the last reported quarter, the company’s adjusted earnings per share of 66 cents exceeded the Zacks Consensus Estimate by 1.54%. The company’s earnings beat estimates in three of the trailing four quarters and missed in the other. EW has a trailing four-quarter earnings surprise of 1.62% on average.
Let's see how things have shaped up before 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 third quarter, aided by consistent 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 will likely be reflected in the Q3 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. The company is also expected to register strong growth with its Smart Recovery portfolio and healthy adoption of its Acumen IQ sensor.
Our model predicts the segment’s third-quarter revenues to be $224.5 million, suggesting an 8.3% 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 continued strong demand for the company’s SAPIEN platform is expected to have acted as the primary growth factor. More specifically, in the United States, the company’s third-quarter TAVR sales are expected to have been boosted by improved hospital staffing levels and the continued successful launch of SAPIEN 3 Ultra RESILIA.
Meanwhile, the company is progressing with its ALLIANCE pivotal trial designed to study the next-generation TAVR technology — SAPIEN X4. These developments are likely to have boosted the company’s third-quarter sales within the business.
Edwards Lifesciences Corporation Price and EPS Surprise
Edwards Lifesciences Corporation price-eps-surprise | Edwards Lifesciences Corporation Quote
Outside the United States, sales growth is projected to be driven by broad-based adoption of the company’s SAPIEN platform.
However, like the last reported quarter, lower-than-expected market growth and competitive trialing in Japan might have dented the performance in the third quarter.
The company’s Transcatheter Mitral and Tricuspid Therapies (TMTT) segment’s PASCAL platform is likely to have maintained strong growth momentum in the third 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 differentiated PASCAL Precision platform across the United States and Europe.
Our model estimates the Transcatheter Heart Valves business to report $1.01 billion, implying a 12.8% improvement from the year-ago period.
Within Surgical Structural Heart, the company is expected to report strong Q3 growth, banking on the penetration of its premium products across all regions. Hospital staffing levels are expected to have improved through the Q3 months, leading to some procedure development.
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. 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 latest premium technologies and surgical market growth, the segment’s third-quarter revenues are expected to have been strong.
Our model estimates the segment’s third-quarter revenues to be $247.9 million, suggesting a 12.8% rise 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.
Q3 Estimates
The Zacks Consensus Estimate for the company’s third-quarter 2023 revenues is pegged at $1.48 billion, suggesting a rise of 12.4% from the year-ago reported figure.
The Zacks Consensus Estimate for third-quarter 2023 net earnings of 59 cents indicates a 3.3% decline from the year-ago reported figure.
What Our Quantitative Model Predicts
Per our proven model, stocks with the combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of beating estimates. This is exactly the case here, as you can see:
Earnings ESP: Edwards Lifesciences has an Earnings ESP of +3.06%. 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.
Other Stocks Worth a Look
Here are some other medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.
Ligand Pharmaceuticals (LGND - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #1. The company is expected to release third-quarter 2023 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
LGND’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 52.47%. The Zacks Consensus Estimate for Ligand Pharmaceuticals’ third-quarter EPS indicates an increase of 65.9% from the year-ago reported figure.
Spero Therapeutics (SPRO - Free Report) currently has an Earnings ESP of +60.00% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results shortly.
SPRO’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 72.4%. The Zacks Consensus Estimate for Spero Therapeutics’ fiscal 2023 third-quarter loss per share indicates an improvement of 54.6% from the year-ago reported figure.
Inspire Medical Systems (INSP - Free Report) has an Earnings ESP of +29.81% and a Zacks Rank #3. The company is expected to release third-quarter 2023 results on Nov 7, 2023.
INSP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.61%. The Zacks Consensus Estimate for Inspire Medical’s third-quarter 2023 EPS implies an increase of 11.7% from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.