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Is a Beat Likely for Edwards Lifesciences (EW) in Q1 Earnings?
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Edwards Lifesciences Corporation (EW - Free Report) is scheduled to report first-quarter 2024 results on Apr 25, after market close.
In the last reported quarter, the company’s adjusted earnings per share of 64 cents matched the Zacks Consensus Estimate. The company’s earnings beat estimates in two of the trailing four quarters and matched estimates in the other two. EW has a trailing four-quarter earnings surprise of 0.80% 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 first 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, Smart Recovery and Smart Expansion portfolio will likely be reflected in the first-quarter results. Continued strong adoption of Acumen IQ sensors, equipped with the high potential prediction index algorithm, is expected to have contributed to growth. A positive trend in terms of heart failure hospitalization is likely to have benefited HemoSphere sales, thus adding to the top line.
Our model predicts the segment’s first-quarter revenues to be $232.8 million, suggesting a 4.9% 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 first-quarter TAVR sales are expected to have been boosted by strong adoption of the company’s flagship SAPIEN 3 Ultra RESILIA.
In the fourth quarter, U.S. and outside U.S. competitive positions were stable. Globally, local selling prices were also stable, contributing to TAVR's performance. This trend is expected to have continued in the first quarter as well. In Europe, sales growth is projected to have been driven by broad-based adoption of the company’s SAPIEN platform. The recent CE Mark approval for SAPIEN 3 Ultra RESILIA is expected to add to the top line in Europe during the first quarter.
Japan, too, despite competitive trialing, delivered a strong performance in the fourth quarter, demonstrating faster than overall procedural growth. This trend might have continued in the first quarter too.
Edwards Lifesciences Corporation Price and EPS Surprise
The company’s Transcatheter Mitral and Tricuspid Therapies (TMTT) segment’s PASCAL platform is likely to have maintained strong growth momentum in the first quarter globally, backed by its portfolio of differentiated therapies, positive pivotal trial results to support approvals and adoption, and favorable real-world clinical outcomes. The TMTT segment’s performance is expected to have been driven by the strong adoption of the differentiated PASCAL Precision platform across the United States and Europe. Further, the company is expected to have gained business with the continued introduction of EVOQUE in Europe.
Our model estimates the Transcatheter Heart Valves business to report revenues of $1.09 billion, implying a 10.4% improvement from the year-ago period.
Within Surgical Structural Heart, the company is expected to have recorded strong first-quarter growth, banking on the penetration of its premium products across all regions.
Edwards Lifesciences is likely to have gained from strong global adoption of its premium RESILIA technology and improvement in procedural volumes. Edwards Lifesciences is expected to have seen strong adoption of the MITRIS RESILIA valve in the United States since its initial launch in April 2023. In October 2023, the company introduced this product in Europe following its CE mark approval. It is likely to have made a full-quarter contribution to growth in the to-be-reported quarter.
Our model estimates the segment’s first-quarter revenues to be $251.3 million, suggesting a 1.3% rise from the year-ago quarter’s reported figure.
We note that staffing shortages, which reduced hospital capacity, and choppy market conditions due to a difficult geopolitical situation are concerns. These are likely to have impeded the company’s growth in the quarter to be reported.
Q1 Estimates
The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $1.58 billion, suggesting a rise of 8.1% from the year-ago reported figure.
The Zacks Consensus Estimate for first-quarter 2024 net earnings of 64 cents per share indicates a 3.2% improvement 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 exactly the case here, as you can see:
Earnings ESP: Edwards Lifesciences has an Earnings ESP of +1.68%. 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 a few medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.
High Tide has an expected earnings growth rate of 100% for fiscal 2024. High Tide surpassed earnings in each of the trailing four quarters, the average being 91.67%.
ShockWave Medical (SWAV - Free Report) has an Earnings ESP of +14.51% and a Zacks Rank #3. The company is due to release first-quarter 2024 results on May 13.
SWAV has an expected long-term earnings growth rate of 27.2%. ShockWave Medical surpassed earnings in three of the trailing four quarters and missed in one, the average beat being 13.55%.
SiBone (SIBN - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank of 3 at present. The company is scheduled to release its first-quarter 2024 results soon.
SIBN has a long-term expected earnings growth rate of 10.9%. SiBone has a trailing four-quarter average earnings surprise of 19.98%.
Image: Bigstock
Is a Beat Likely for Edwards Lifesciences (EW) in Q1 Earnings?
Edwards Lifesciences Corporation (EW - Free Report) is scheduled to report first-quarter 2024 results on Apr 25, after market close.
In the last reported quarter, the company’s adjusted earnings per share of 64 cents matched the Zacks Consensus Estimate. The company’s earnings beat estimates in two of the trailing four quarters and matched estimates in the other two. EW has a trailing four-quarter earnings surprise of 0.80% 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 first 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, Smart Recovery and Smart Expansion portfolio will likely be reflected in the first-quarter results. Continued strong adoption of Acumen IQ sensors, equipped with the high potential prediction index algorithm, is expected to have contributed to growth. A positive trend in terms of heart failure hospitalization is likely to have benefited HemoSphere sales, thus adding to the top line.
Our model predicts the segment’s first-quarter revenues to be $232.8 million, suggesting a 4.9% 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 first-quarter TAVR sales are expected to have been boosted by strong adoption of the company’s flagship SAPIEN 3 Ultra RESILIA.
In the fourth quarter, U.S. and outside U.S. competitive positions were stable. Globally, local selling prices were also stable, contributing to TAVR's performance. This trend is expected to have continued in the first quarter as well. In Europe, sales growth is projected to have been driven by broad-based adoption of the company’s SAPIEN platform. The recent CE Mark approval for SAPIEN 3 Ultra RESILIA is expected to add to the top line in Europe during the first quarter.
Japan, too, despite competitive trialing, delivered a strong performance in the fourth quarter, demonstrating faster than overall procedural growth. This trend might have continued in the first quarter too.
Edwards Lifesciences Corporation Price and EPS Surprise
Edwards Lifesciences Corporation price-eps-surprise | Edwards Lifesciences Corporation Quote
The company’s Transcatheter Mitral and Tricuspid Therapies (TMTT) segment’s PASCAL platform is likely to have maintained strong growth momentum in the first quarter globally, backed by its portfolio of differentiated therapies, positive pivotal trial results to support approvals and adoption, and favorable real-world clinical outcomes. The TMTT segment’s performance is expected to have been driven by the strong adoption of the differentiated PASCAL Precision platform across the United States and Europe. Further, the company is expected to have gained business with the continued introduction of EVOQUE in Europe.
Our model estimates the Transcatheter Heart Valves business to report revenues of $1.09 billion, implying a 10.4% improvement from the year-ago period.
Within Surgical Structural Heart, the company is expected to have recorded strong first-quarter growth, banking on the penetration of its premium products across all regions.
Edwards Lifesciences is likely to have gained from strong global adoption of its premium RESILIA technology and improvement in procedural volumes. Edwards Lifesciences is expected to have seen strong adoption of the MITRIS RESILIA valve in the United States since its initial launch in April 2023. In October 2023, the company introduced this product in Europe following its CE mark approval. It is likely to have made a full-quarter contribution to growth in the to-be-reported quarter.
Our model estimates the segment’s first-quarter revenues to be $251.3 million, suggesting a 1.3% rise from the year-ago quarter’s reported figure.
We note that staffing shortages, which reduced hospital capacity, and choppy market conditions due to a difficult geopolitical situation are concerns. These are likely to have impeded the company’s growth in the quarter to be reported.
Q1 Estimates
The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $1.58 billion, suggesting a rise of 8.1% from the year-ago reported figure.
The Zacks Consensus Estimate for first-quarter 2024 net earnings of 64 cents per share indicates a 3.2% improvement 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 exactly the case here, as you can see:
Earnings ESP: Edwards Lifesciences has an Earnings ESP of +1.68%. 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 a few medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.
High Tide (HITI - Free Report) has an Earnings ESP of +175.00% and a Zacks Rank #1. The company is expected to release second-quarter fiscal 2024 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
High Tide has an expected earnings growth rate of 100% for fiscal 2024. High Tide surpassed earnings in each of the trailing four quarters, the average being 91.67%.
ShockWave Medical (SWAV - Free Report) has an Earnings ESP of +14.51% and a Zacks Rank #3. The company is due to release first-quarter 2024 results on May 13.
SWAV has an expected long-term earnings growth rate of 27.2%. ShockWave Medical surpassed earnings in three of the trailing four quarters and missed in one, the average beat being 13.55%.
SiBone (SIBN - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank of 3 at present. The company is scheduled to release its first-quarter 2024 results soon.
SIBN has a long-term expected earnings growth rate of 10.9%. SiBone has a trailing four-quarter average earnings surprise of 19.98%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.