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What's in Store for Edwards Lifesciences' (EW) Q1 Earnings?

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Edwards Lifesciences Corporation (EW - Free Report) is slated to report first-quarter 2019 results, after market close on Apr 23. The company delivered positive earnings surprises in the trailing four quarters, the average beat being 6.7%.
 
Let's see how things are shaping up prior to this announcement.
 
Which Way Are the Estimates Treading?
 
For the first quarter, the Zacks Consensus Estimate for earnings stands at $1.23 per share, reflecting a year-over-year rise of 0.8%. The same for revenues is pinned at $988.9 million, mirroring year-over-year growth of 10.5%.
Key Catalysts
 
For the quarter to be reported, Edwards Lifesciences is expected to gain from strength in its core Critical Care product group. The segment has been showing solid growth within all its product categories.
 
In fact, the Zacks Consensus Estimate for the group’s first-quarter revenues is pegged at $170 million, showing a year-over-year rise of 3.7%.
 
Management is optimistic about robust demand for HemoSphere all-in-one monitoring platform, which is currently performing impressively. In fact, HemoSphere demand is expected to drive the Critical Care group in the entire 2019 in spite of the fact that year-over-year comparisons will become more difficult during this period.
 
In the recent past, the company received FDA approval for Acumen Hypotension Prediction Index software for use on HemoSphere. This is also expected to be an important growth driver for 2019.
 
For 2019, the company expects underlying sales growth within Critical Care in the range of 5% to 7% considering difficult comparisons. The company is optimistic about its robust pipeline of innovative Critical Care products.
 
Within Surgical Structural Heart Group, the company is gaining on solid aortic unit volume and continued adoption of its latest premium aortic valves. Strong rollout of INSPIRIS RESILIA aortic valve across the globe is expected to strongly contribute to the company’s top line in the yet to be reported quarter.
 
Within Surgical Structural Heart, Edwards Lifesciences expects full year 2019 underlying sales growth in the range of 1% to 3%.
 
Other Factors at Play
 
Edwards Lifesciences has been seeing consistently strong performance by the Transcatheter Heart Valve Therapy (THVT) segment.
 
In fact, the Zacks Consensus Estimate for the segment’s first-quarter revenues stands at $595 million, showing a year-over-year rise of 7.8%. Last November, Edwards Lifesciences received CE mark for the SAPIEN 3 Ultra system for transcatheter aortic valve replacement in severe, symptomatic aortic stenosis patients.
 
However, owing to limited contribution from Cardioband Tricuspid Annular Reduction System and a newly-revised controlled rollout strategy for SAPIEN 3 Ultra, management expects solt first-quarter sales for THVT.
 
The company’s international sales are expected to rise in the first quarter on strong adoption of TAVR procedures.
 
The Zacks Consensus Estimate for the same stands at $444 million, up 7% year over year.
 
Banking on its SAPIEN 3 Ultra system launch in Europe, Edwards Lifesciences expects strong revenues from this geography. The Zacks Consensus Estimate for Europe’s first-quarter sales is pegged at $251 million, showing a sequential rise of 11.1%.
 
In Japan the company continued to witness TAVR adoption, driven by SAPIEN 3. However, the Zacks Consensus Estimate for the same is pinned at $98 million, down 8.4%.
 
Despite this, Edwards Lifesciences’ European revenues are expected to drive international sales owing to solid demand for the company’s products in the region.
 
What Our Model Suggests
 
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
 
Edwards Lifesciences has a Zacks Rank #3 and an Earnings ESP of -0.60%, a combination that doesn’t suggest a beat for the company this earnings season. You can see the complete list of today’s Zacks #1 Rank stocks here.
 
Stocks Worth a Look
 
Here are a few medical stocks worth considering as these also have the right combination of elements to post an earnings beat in the to-be-reported quarter.
 
PerkinElmer (PKI - Free Report) has an Earnings ESP of +2.64% and a Zacks Rank #3.
 
Stryker Corporation (SYK - Free Report) has an Earnings ESP of +0.35% and a Zacks Rank #3.
 
Cardinal Health (CAH - Free Report) has an Earnings ESP of +1.13% and a Zacks Rank #3.
 
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