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What's in Store for Edwards Lifesciences (EW) in Q4 Earnings?
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Edwards Lifesciences Corporation (EW - Free Report) is expected to report fourth-quarter and full-year 2023 results soon.
In the last reported quarter, the company’s adjusted earnings per share of 59 cents matched the Zacks Consensus Estimate. The company’s earnings beat estimates in three of the trailing four quarters and were in line in the other. EW has a trailing four-quarter earnings surprise of 2.03% 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 adoption of transcatheter heart valves is expected to have driven growth in the fourth 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 portfolio will likely be reflected in the fourth-quarter results.Continued strong adoption of Acumen IQ sensors, equipped with the high potential prediction index algorithm, is expected to have contributed to the growth. 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.
Our model predicts the segment’s fourth-quarter revenues to be $235.1 million, suggesting a 4.5% 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 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 fourth-quarter TAVR sales are expected to have been boosted by improved hospital staffing levels and the continued successful launch of SAPIEN 3 Ultra RESILIA.
Edwards Lifesciences Corporation Price and EPS Surprise
In the third quarter, U.S. and outside U.S. competitive positions were stable. Globally, local selling prices were stable contributing to the TAVR performance. This trend is expected to have continued in the fourth quarter as well. In Europe, sales growth is projected to have been driven by broad-based adoption of the company’s SAPIEN platform.
However, competitive trialing in Japan might have dented the performance in the fourth quarter, albeit by a lesser magnitude compared to the previous three quarters of 2023.
The company’s Transcatheter Mitral and Tricuspid Therapies segment’s PASCAL platform is likely to have maintained strong growth momentum in the fourth quarter, backed by its 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 fourth-quarter growth, banking on the penetration of its premium products across all regions. Hospital staffing levels are expected to have improved through the fourth-quarter 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 is expected to have seen strong adoption of the MITRIS RESILIA valve in the United States since its initial launch in April. In October, the company introduced this product in Europe following its CE mark approval. This too is likely to have contributed to growth in the to-be-reported quarter.
Our model estimates the segment’s fourth-quarter revenues to be $250.4 million, suggesting an 11.7% 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.
Q4 Estimates
The Zacks Consensus Estimate for the company’s fourth-quarter 2023 revenues is pegged at $1.50 billion, suggesting a rise of 11.1% from the year-ago reported figure.
The Zacks Consensus Estimate for fourth-quarter 2023 net earnings of 64 cents indicates no change 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 not the case here, 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 #3.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.
SiBone has a long-term expected earnings growth rate of 15.2%. SIBN surpassed earnings in each of the trailing four quarters, the average being 24.21%.
RxSight (RXST - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #2. The company is expected to release fourth-quarter 2023 results shortly.
RXST has a long-term expected earnings growth rate of 21%. The company surpassed earnings in each of the trailing four quarters, the average being 18.25%.
Masimo (MASI - Free Report) currently has an Earnings ESP of +9.51% and a Zacks Rank #2. The company is expected to release its fourth-quarter 2023 results soon.
MASI has an earnings yield of 2.69% against the industry’s -5.04%. In the last reported quarter, the company delivered an earnings surprise of 6.78%.
Image: Bigstock
What's in Store for Edwards Lifesciences (EW) in Q4 Earnings?
Edwards Lifesciences Corporation (EW - Free Report) is expected to report fourth-quarter and full-year 2023 results soon.
In the last reported quarter, the company’s adjusted earnings per share of 59 cents matched the Zacks Consensus Estimate. The company’s earnings beat estimates in three of the trailing four quarters and were in line in the other. EW has a trailing four-quarter earnings surprise of 2.03% 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 adoption of transcatheter heart valves is expected to have driven growth in the fourth 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 portfolio will likely be reflected in the fourth-quarter results.Continued strong adoption of Acumen IQ sensors, equipped with the high potential prediction index algorithm, is expected to have contributed to the growth. 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.
Our model predicts the segment’s fourth-quarter revenues to be $235.1 million, suggesting a 4.5% 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 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 fourth-quarter TAVR sales are expected to have been boosted by improved hospital staffing levels and the continued successful launch of SAPIEN 3 Ultra RESILIA.
Edwards Lifesciences Corporation Price and EPS Surprise
Edwards Lifesciences Corporation price-eps-surprise | Edwards Lifesciences Corporation Quote
In the third quarter, U.S. and outside U.S. competitive positions were stable. Globally, local selling prices were stable contributing to the TAVR performance. This trend is expected to have continued in the fourth quarter as well. In Europe, sales growth is projected to have been driven by broad-based adoption of the company’s SAPIEN platform.
However, competitive trialing in Japan might have dented the performance in the fourth quarter, albeit by a lesser magnitude compared to the previous three quarters of 2023.
The company’s Transcatheter Mitral and Tricuspid Therapies segment’s PASCAL platform is likely to have maintained strong growth momentum in the fourth quarter, backed by its 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 fourth-quarter growth, banking on the penetration of its premium products across all regions. Hospital staffing levels are expected to have improved through the fourth-quarter 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 is expected to have seen strong adoption of the MITRIS RESILIA valve in the United States since its initial launch in April. In October, the company introduced this product in Europe following its CE mark approval. This too is likely to have contributed to growth in the to-be-reported quarter.
Our model estimates the segment’s fourth-quarter revenues to be $250.4 million, suggesting an 11.7% 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.
Q4 Estimates
The Zacks Consensus Estimate for the company’s fourth-quarter 2023 revenues is pegged at $1.50 billion, suggesting a rise of 11.1% from the year-ago reported figure.
The Zacks Consensus Estimate for fourth-quarter 2023 net earnings of 64 cents indicates no change 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 not the case here, 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 #3.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.
SiBone (SIBN - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #1. The company is expected to release fourth-quarter 2023 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
SiBone has a long-term expected earnings growth rate of 15.2%. SIBN surpassed earnings in each of the trailing four quarters, the average being 24.21%.
RxSight (RXST - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #2. The company is expected to release fourth-quarter 2023 results shortly.
RXST has a long-term expected earnings growth rate of 21%. The company surpassed earnings in each of the trailing four quarters, the average being 18.25%.
Masimo (MASI - Free Report) currently has an Earnings ESP of +9.51% and a Zacks Rank #2. The company is expected to release its fourth-quarter 2023 results soon.
MASI has an earnings yield of 2.69% against the industry’s -5.04%. In the last reported quarter, the company delivered an earnings surprise of 6.78%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.