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Edwards (EW) States Long-Term Strategy, Provides 2022 View
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Edwards Lifesciences Corporation (EW - Free Report) during its annual investor conference outlined the company’s long-term growth strategy and also provided an update on its technology pipeline. The company has also provided its financial guidance for 2022.
As Edwards Lifesciences continues to aggressively pursue breakthrough therapies in the structural heart diseases space, the company expects 2022 to be another year of double-digit top- and bottom-line growth, following a strong 2021. Edwards Lifesciences expects to reach significant milestones in 2022, including new product launches and progress in multiple significant clinical trials. The company remains confident about strong organic growth in the years to come.
Within the Transcatheter Aortic Valve Replacement (“TAVR”) business, the company projects huge industry prospects. According to Edwards Lifesciences, the global TAVR market opportunity will reach $10 billion by 2028, banking on greater awareness, new technological advancements, and geographic expansions. Among major targeted milestones in 2022, the company expects continued adoption of the SAPIEN 3 Ultra system, anticipating stable selling prices and market share.
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Within Transcatheter Mitral and Tricuspid Therapies (“TMTT”), according to Edwards Lifesciences, the global market opportunity is expected to reach $5 billion by 2028. To capture this prospect, the company plans to remain focused on three key value drivers, a portfolio of differentiated therapies, positive pivotal trial results to support approvals and adoption, and excellent real-world clinical outcomes. Major milestones of 2022 include the U.S. approval of PASCAL for patients with degenerative mitral regurgitation and the European approval of the EVOQUE tricuspid valve both expected in late 2022.
In Surgical Structural Heart, Edwards Lifesciences projects the global market opportunity to reach $2 billion by 2028, driven by global cardiac procedure growth. The company expects broadened adoption of its flagship aortic surgical heart valve, INSPIRIS RESILIA, in 2022, along with the KONECT RESILIA valved conduit. In 2022, Edwards expects to launch a new surgical mitral valve, MITRIS RESILIA, in the United States.
In Critical Care, Edwards Lifesciences believes the global hemodynamic monitoring market opportunity to reach approximately $2 billion by 2028. At present, the company is integrating a full range of Smart Recovery technologies on the HemoSphere monitoring platform. Also, in 2022, Edwards anticipates the U.S. launch of its Viewfinder network connectivity solution and the initiation of the SMART BP study.
2021 Guidance Reaffirmed
For 2021, the company reinstated its previous projection of adjusted earnings per share at the high end of the $2.07-$2.27 range. The company also reinstated its previous anticipation for sales in the range of $5.2-$5.4 billion for 2021.
TAVR sales for 2021 are expected in the range of $5.2-$5.4 billion while Surgical Structural Heart sales are expected in the band of $875-$925 million. Critical Care sales are projected in the range of $800-$850 million. TMTT is expected to register sales in the range of $80-$100 million.
2022 Guidance
Edwards Lifesciences provided its full-year 2022 guidance. On assumption of a gradual COVID recovery with growth across all major regions and no significant impact from new variants, the company expects full-year adjusted earnings per share in the band of $2.50-$2.65 on revenues in the band of $5.5-$6.0 billion (implying underlying low double-digit growth rate). The Zacks Consensus Estimate for adjusted EPS and revenues is pegged at $2.52 and $5.78 billion, respectively.
TAVR sales for 2021 are expected in the range of $3.7-$4.0 billion while Surgical Structural Heart sales are projected in the range of $870-$950 million. Critical Care sales are projected in the range of $820-$900 million and TMTT is expected to register sales in the range of $140-$170 million. The company expects $120 million of unfavorable foreign exchange impact of 2021 sales.
Price Performance
Shares of the company have gained 45.8% in a year’s time compared with the industry’s 9% rise.
Zacks Rank and Key Picks
Edwards Lifesciences currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the broader medical space are Chemed Corporation (CHE - Free Report) , Laboratory Corporation of America Holdings, or LabCorp (LH - Free Report) and Medpace Holdings, Inc. (MEDP - Free Report) .
Chemed has a long-term earnings growth rate of 7.7%. The company surpassed earnings estimates in three of the trailing four quarters and missed in one, delivering a surprise of 5.6%, on average. It currently carries a Zacks Rank #2.
Chemed has outperformed its industry over the past year. CHE has gained 3.7% against a decline of 35.6% for the industry.
LabCorp reported third-quarter 2021 adjusted EPS of $6.82, which surpassed the Zacks Consensus Estimate by 42.9%. Revenues of $4.06 billion outpaced the Zacks Consensus Estimate by 13.4%. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LabCorp has an estimated long-term growth rate of 10.6%. LH surpassed estimates in the trailing four quarters, the average surprise being 25.7%.
Medpace reported third-quarter 2021 adjusted EPS of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%. It currently carries a Zacks Rank #1.
Medpace has an estimated long-term growth rate of 16.4%. MEDP surpassed estimates in the trailing four quarters, the average surprise being 11.9%.
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Edwards (EW) States Long-Term Strategy, Provides 2022 View
Edwards Lifesciences Corporation (EW - Free Report) during its annual investor conference outlined the company’s long-term growth strategy and also provided an update on its technology pipeline. The company has also provided its financial guidance for 2022.
As Edwards Lifesciences continues to aggressively pursue breakthrough therapies in the structural heart diseases space, the company expects 2022 to be another year of double-digit top- and bottom-line growth, following a strong 2021. Edwards Lifesciences expects to reach significant milestones in 2022, including new product launches and progress in multiple significant clinical trials. The company remains confident about strong organic growth in the years to come.
Within the Transcatheter Aortic Valve Replacement (“TAVR”) business, the company projects huge industry prospects. According to Edwards Lifesciences, the global TAVR market opportunity will reach $10 billion by 2028, banking on greater awareness, new technological advancements, and geographic expansions. Among major targeted milestones in 2022, the company expects continued adoption of the SAPIEN 3 Ultra system, anticipating stable selling prices and market share.
Within Transcatheter Mitral and Tricuspid Therapies (“TMTT”), according to Edwards Lifesciences, the global market opportunity is expected to reach $5 billion by 2028. To capture this prospect, the company plans to remain focused on three key value drivers, a portfolio of differentiated therapies, positive pivotal trial results to support approvals and adoption, and excellent real-world clinical outcomes. Major milestones of 2022 include the U.S. approval of PASCAL for patients with degenerative mitral regurgitation and the European approval of the EVOQUE tricuspid valve both expected in late 2022.
In Surgical Structural Heart, Edwards Lifesciences projects the global market opportunity to reach $2 billion by 2028, driven by global cardiac procedure growth. The company expects broadened adoption of its flagship aortic surgical heart valve, INSPIRIS RESILIA, in 2022, along with the KONECT RESILIA valved conduit. In 2022, Edwards expects to launch a new surgical mitral valve, MITRIS RESILIA, in the United States.
In Critical Care, Edwards Lifesciences believes the global hemodynamic monitoring market opportunity to reach approximately $2 billion by 2028. At present, the company is integrating a full range of Smart Recovery technologies on the HemoSphere monitoring platform. Also, in 2022, Edwards anticipates the U.S. launch of its Viewfinder network connectivity solution and the initiation of the SMART BP study.
2021 Guidance Reaffirmed
For 2021, the company reinstated its previous projection of adjusted earnings per share at the high end of the $2.07-$2.27 range. The company also reinstated its previous anticipation for sales in the range of $5.2-$5.4 billion for 2021.
TAVR sales for 2021 are expected in the range of $5.2-$5.4 billion while Surgical Structural Heart sales are expected in the band of $875-$925 million. Critical Care sales are projected in the range of $800-$850 million. TMTT is expected to register sales in the range of $80-$100 million.
2022 Guidance
Edwards Lifesciences provided its full-year 2022 guidance. On assumption of a gradual COVID recovery with growth across all major regions and no significant impact from new variants, the company expects full-year adjusted earnings per share in the band of $2.50-$2.65 on revenues in the band of $5.5-$6.0 billion (implying underlying low double-digit growth rate). The Zacks Consensus Estimate for adjusted EPS and revenues is pegged at $2.52 and $5.78 billion, respectively.
TAVR sales for 2021 are expected in the range of $3.7-$4.0 billion while Surgical Structural Heart sales are projected in the range of $870-$950 million. Critical Care sales are projected in the range of $820-$900 million and TMTT is expected to register sales in the range of $140-$170 million. The company expects $120 million of unfavorable foreign exchange impact of 2021 sales.
Price Performance
Shares of the company have gained 45.8% in a year’s time compared with the industry’s 9% rise.
Zacks Rank and Key Picks
Edwards Lifesciences currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the broader medical space are Chemed Corporation (CHE - Free Report) , Laboratory Corporation of America Holdings, or LabCorp (LH - Free Report) and Medpace Holdings, Inc. (MEDP - Free Report) .
Chemed has a long-term earnings growth rate of 7.7%. The company surpassed earnings estimates in three of the trailing four quarters and missed in one, delivering a surprise of 5.6%, on average. It currently carries a Zacks Rank #2.
Chemed has outperformed its industry over the past year. CHE has gained 3.7% against a decline of 35.6% for the industry.
LabCorp reported third-quarter 2021 adjusted EPS of $6.82, which surpassed the Zacks Consensus Estimate by 42.9%. Revenues of $4.06 billion outpaced the Zacks Consensus Estimate by 13.4%. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LabCorp has an estimated long-term growth rate of 10.6%. LH surpassed estimates in the trailing four quarters, the average surprise being 25.7%.
Medpace reported third-quarter 2021 adjusted EPS of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%. It currently carries a Zacks Rank #1.
Medpace has an estimated long-term growth rate of 16.4%. MEDP surpassed estimates in the trailing four quarters, the average surprise being 11.9%.