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Edwards (EW) Gains From RESILIA's Global Adoption, TAVR Growth
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Edwards Lifesciences (EW - Free Report) has been gaining from strength across all key segments. Innovation also aids growth. The stock carries a Zacks Rank #2 (Buy) currently.
Edwards’ Surgical Structural Heart business pioneered the innovative RESILIA tissue, which is backed by more than 40 years of the company’s tissue technology leadership. The RESILIA portfolio has been widely adopted because of the excellent durability of its proven tissue technology. The company is optimistic about the future of this technology as it continues to expand the body of RESILIA evidence.
In the fourth quarter of 2023, the business benefited from the strong global adoption of Edwards' premium RESILIA technology and overall procedural volumes. The company received CE Mark approval for the MITRIS RESILIA surgical mitral valve and has begun its launch in several European countries with positive physician feedback.
By the end of 2024, Edwards expects to treat half a million patients with the RESILIA-based heart valve. The company will further drive the adoption of its flagship surgical aortic heart valve, INSPIRIS RESILIA, which incorporates the RESILIA tissue integrity preservation technology and VFit technology for potential future valve-in-valve procedures.
In December 2023, Edwards announced the strategic decision to spin off the Critical Care segment at the end of 2024. The company expects this tax-free, planned separation to be a strategic move for the core business. With this spin-off, the company can pursue m Transcatheter Aortic Valve Replacement (TAVR), Transcatheter Mitral and Tricuspid Therapies (TMTT) and Surgical opportunities, as well as new investments in interventional heart failure technologies.
Further, the company’s TAVR platform is positioned for continued global leadership and strong sustainable growth. This is expected to be propelled by greater awareness, patient activation, advances in new technologies such as RESILIA as well as indication expansion and increased global adoption.
Over the past few quarters, TAVR sales have been driven by the strong performance of the Edwards SAPIEN 3 Ultra valve in the United States, Europe and Rest of World, the Edwards SAPIEN 3 Ultra RESILIA valve in the United States and the Edwards SAPIEN 3 in Japan. The business closed the fourth quarter of 2023 with 12% year-over-year growth, driven by a broad portfolio of innovative therapies.
On the flip side, the global economy continues to experience volatility and disruptions, including conditions impacting inflation, credit and capital markets, interest rates and factors affecting global economic stability and the political environment relating to health care. Even though the pandemic is over, the company acknowledged the lingering impacts faced in 2023, particularly in Japan, and disruptions related to staffing shortages in the United States and Europe.
This is expected to continue amid the ongoing budget constraints and staffing shortages within the hospital systems. In addition, medical procedure rates and demand for the company’s products will continue to fluctuate as the medical system rebalances its infrastructure and resources in a post-COVID-19 market. Edwards Lifesciences has been grappling with escalated expenses for a while. In the fourth quarter of 2023, the company’s SG&A and R&D expenses rose 16.8% and 16.3%, respectively, compared with the same period in 2022. The fourth quarter recorded a 416-basis point decline in the gross margin, while the operating margin declined by 532 basis points.
Cardinal Health’s shares have risen 51.8% in the past year. Earnings estimates for the company have risen from $6.91 to $7.28 for fiscal 2024 and from $7.76 to $8.03 for fiscal 2025 in the past 30 days.
CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 15.6%. In the last reported quarter, it delivered an earnings surprise of 16.7%.
Estimates for DaVita’s 2024 earnings per share (EPS) have moved from $8.46 to $8.97 in the past 30 days. Shares of the company have soared 45.6% in the past year compared with the industry’s 7.9% growth.
DVA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 35.6%. In the last reported quarter, it delivered an earnings surprise of 22.2%.
Estimates for Stryker’s 2024 EPS have increased from $11.79 to $11.86 in the past 30 days. Shares of the company have moved 32% north in the past year compared with the industry’s growth of 5.7%.
SYK’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 5.1%. In the last reported quarter, it delivered an earnings surprise of 5.8%.
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Edwards (EW) Gains From RESILIA's Global Adoption, TAVR Growth
Edwards Lifesciences (EW - Free Report) has been gaining from strength across all key segments. Innovation also aids growth. The stock carries a Zacks Rank #2 (Buy) currently.
Edwards’ Surgical Structural Heart business pioneered the innovative RESILIA tissue, which is backed by more than 40 years of the company’s tissue technology leadership. The RESILIA portfolio has been widely adopted because of the excellent durability of its proven tissue technology. The company is optimistic about the future of this technology as it continues to expand the body of RESILIA evidence.
In the fourth quarter of 2023, the business benefited from the strong global adoption of Edwards' premium RESILIA technology and overall procedural volumes. The company received CE Mark approval for the MITRIS RESILIA surgical mitral valve and has begun its launch in several European countries with positive physician feedback.
By the end of 2024, Edwards expects to treat half a million patients with the RESILIA-based heart valve. The company will further drive the adoption of its flagship surgical aortic heart valve, INSPIRIS RESILIA, which incorporates the RESILIA tissue integrity preservation technology and VFit technology for potential future valve-in-valve procedures.
Edwards Lifesciences Corporation Price
Edwards Lifesciences Corporation price | Edwards Lifesciences Corporation Quote
In December 2023, Edwards announced the strategic decision to spin off the Critical Care segment at the end of 2024. The company expects this tax-free, planned separation to be a strategic move for the core business. With this spin-off, the company can pursue m Transcatheter Aortic Valve Replacement (TAVR), Transcatheter Mitral and Tricuspid Therapies (TMTT) and Surgical opportunities, as well as new investments in interventional heart failure technologies.
Further, the company’s TAVR platform is positioned for continued global leadership and strong sustainable growth. This is expected to be propelled by greater awareness, patient activation, advances in new technologies such as RESILIA as well as indication expansion and increased global adoption.
Over the past few quarters, TAVR sales have been driven by the strong performance of the Edwards SAPIEN 3 Ultra valve in the United States, Europe and Rest of World, the Edwards SAPIEN 3 Ultra RESILIA valve in the United States and the Edwards SAPIEN 3 in Japan. The business closed the fourth quarter of 2023 with 12% year-over-year growth, driven by a broad portfolio of innovative therapies.
On the flip side, the global economy continues to experience volatility and disruptions, including conditions impacting inflation, credit and capital markets, interest rates and factors affecting global economic stability and the political environment relating to health care. Even though the pandemic is over, the company acknowledged the lingering impacts faced in 2023, particularly in Japan, and disruptions related to staffing shortages in the United States and Europe.
This is expected to continue amid the ongoing budget constraints and staffing shortages within the hospital systems. In addition, medical procedure rates and demand for the company’s products will continue to fluctuate as the medical system rebalances its infrastructure and resources in a post-COVID-19 market. Edwards Lifesciences has been grappling with escalated expenses for a while. In the fourth quarter of 2023, the company’s SG&A and R&D expenses rose 16.8% and 16.3%, respectively, compared with the same period in 2022. The fourth quarter recorded a 416-basis point decline in the gross margin, while the operating margin declined by 532 basis points.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Cardinal Health (CAH - Free Report) , DaVita (DVA - Free Report) and Stryker (SYK - Free Report) . Cardinal Health and DaVita sport a Zacks Rank #1 (Strong Buy) each, while Stryker carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardinal Health’s shares have risen 51.8% in the past year. Earnings estimates for the company have risen from $6.91 to $7.28 for fiscal 2024 and from $7.76 to $8.03 for fiscal 2025 in the past 30 days.
CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 15.6%. In the last reported quarter, it delivered an earnings surprise of 16.7%.
Estimates for DaVita’s 2024 earnings per share (EPS) have moved from $8.46 to $8.97 in the past 30 days. Shares of the company have soared 45.6% in the past year compared with the industry’s 7.9% growth.
DVA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 35.6%. In the last reported quarter, it delivered an earnings surprise of 22.2%.
Estimates for Stryker’s 2024 EPS have increased from $11.79 to $11.86 in the past 30 days. Shares of the company have moved 32% north in the past year compared with the industry’s growth of 5.7%.
SYK’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 5.1%. In the last reported quarter, it delivered an earnings surprise of 5.8%.