We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Edward Lifesciences (EW) Q1 Earnings: A Surprise in Store?
Read MoreHide Full Article
Edward Lifesciences Corp. (EW - Free Report) is scheduled to report first-quarter 2017 earnings results after market close on Apr 25.
Last quarter, the company posted a positive earnings surprise of 5.63%. It is worth noting that Edward Lifesciences has outperformed the Zacks Consensus Estimate in two of the preceding four quarters, with an average positive earnings surprise of 5.45%. Let’s see how things are shaping up prior to this announcement.
Factors at Play
Edward Lifesciences posted a strong global sales performance in the last reported fourth quarter, primarily buoyed by solid Transcatheter Heart Valve sales. With continued strong therapy adoption across all geographies with notable strength in the U.S. and Japan, the company is expected to maintain this bullish trend in the first quarter of 2017 as well.
Edwards Lifesciences Corporation Price and EPS Surprise
In this regard we note that, the company projected total sales between $760 million and $800 million and adjusted earnings per share of 79 cents to 89 cents for the first quarter.
We are encouraged by Edward Lifesciences’ initiative of strategic investment in research and development and winning of regulatory approvals for those products. Recently, Edwards Lifesciences received FDA clearance for its HemoSphere advanced monitoring platform.
Apart from this, management completed the acquisition of Israel-based Valtech Cardio, a developer of Cardioband System for transcatheter repair of the mitral and tricuspid valves toward the end of the fourth quarter. All these are expected to boost the top line in the quarter to be reported.
On the flip side, for the past three months, the company’s share price has been trading below the Zacks categorized Medical - Instruments industry. The stock gained 1.8%, lower than the 5.0% gain of the broader industry.
Additionally, stiff competition in the cardiac devices market and reimbursement issues continues to plague the stock. We are also concerned about unfavorable foreign currency that has been affecting the company’s gross margin over the past few quarters. Management expects this problem to linger in the forthcoming quarter as well.
Earnings Whispers
Our proven model does not conclusively show that Edward Lifesciences is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here, as you will see below.
Zacks ESP: Edward Lifesciences has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 82 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Edward Lifesciences’ Zacks Rank #3 increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may consider as our model shows that they have the right combination of elements to post an earnings beat in the upcoming quarter:
Hill-Rom Holdings Inc has an Earnings ESP of +1.27% and a Zacks Rank #2.
Syros Pharmaceuticals, Inc. (SYRS - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #2.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
Image: Bigstock
Edward Lifesciences (EW) Q1 Earnings: A Surprise in Store?
Edward Lifesciences Corp. (EW - Free Report) is scheduled to report first-quarter 2017 earnings results after market close on Apr 25.
Last quarter, the company posted a positive earnings surprise of 5.63%. It is worth noting that Edward Lifesciences has outperformed the Zacks Consensus Estimate in two of the preceding four quarters, with an average positive earnings surprise of 5.45%. Let’s see how things are shaping up prior to this announcement.
Factors at Play
Edward Lifesciences posted a strong global sales performance in the last reported fourth quarter, primarily buoyed by solid Transcatheter Heart Valve sales. With continued strong therapy adoption across all geographies with notable strength in the U.S. and Japan, the company is expected to maintain this bullish trend in the first quarter of 2017 as well.
Edwards Lifesciences Corporation Price and EPS Surprise
Edwards Lifesciences Corporation Price and EPS Surprise | Edwards Lifesciences Corporation Quote
In this regard we note that, the company projected total sales between $760 million and $800 million and adjusted earnings per share of 79 cents to 89 cents for the first quarter.
We are encouraged by Edward Lifesciences’ initiative of strategic investment in research and development and winning of regulatory approvals for those products. Recently, Edwards Lifesciences received FDA clearance for its HemoSphere advanced monitoring platform.
Apart from this, management completed the acquisition of Israel-based Valtech Cardio, a developer of Cardioband System for transcatheter repair of the mitral and tricuspid valves toward the end of the fourth quarter. All these are expected to boost the top line in the quarter to be reported.
On the flip side, for the past three months, the company’s share price has been trading below the Zacks categorized Medical - Instruments industry. The stock gained 1.8%, lower than the 5.0% gain of the broader industry.
Additionally, stiff competition in the cardiac devices market and reimbursement issues continues to plague the stock. We are also concerned about unfavorable foreign currency that has been affecting the company’s gross margin over the past few quarters. Management expects this problem to linger in the forthcoming quarter as well.
Earnings Whispers
Our proven model does not conclusively show that Edward Lifesciences is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here, as you will see below.
Zacks ESP: Edward Lifesciences has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 82 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Edward Lifesciences’ Zacks Rank #3 increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may consider as our model shows that they have the right combination of elements to post an earnings beat in the upcoming quarter:
Galectin Therapautics, Inc. (GALT - Free Report) has an Earnings ESP of +13.33% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hill-Rom Holdings Inc has an Earnings ESP of +1.27% and a Zacks Rank #2.
Syros Pharmaceuticals, Inc. (SYRS - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #2.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>