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Is a Beat Likely for Edwards Lifesciences (EW) in Q2 Earnings?
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Edwards Lifesciences Corporation (EW - Free Report) is scheduled to report second-quarter 2024 results on Jul 24, after market close.
In the last reported quarter, the company’s adjusted earnings per share of 66 cents exceeded the Zacks Consensus Estimate by 3.13%. 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 1.17% on average.
Q2 Estimates
The Zacks Consensus Estimate for the company’s second-quarter 2024 revenues is pegged at $1.65 billion, suggesting a rise of 8.1% from the year-ago reported figure.
The Zacks Consensus Estimate for second-quarter 2024 net earnings of 70 cents per share indicates a 6.1% improvement from the year-ago reported figure.
For the second quarter of 2024, the company projected total sales to be between $1.62 and $1.70 billion. It expects adjusted EPS in the band of 67 cents to 71 cents.
Estimate Revision Trend Ahead of Earnings
Estimates for Edwards Lifesciences’ second-quarter earnings remained unchanged at 70 per share in the past 90 days.
Let's briefly look at how things have progressed for the MedTech major leading up to this announcement.
Factors at Play
Similar to the last reported quarter, Edwards Lifesciences is likely to have gained from its patient-focused innovation strategy. A favorable hospitalization trend, strong global adoption of transcatheter heart valves and improved procedural volume are expected to have driven growth in the second quarter.
In Critical Care, continued demand for Smart Recovery portfolio is likely to be reflected in the second-quarter results. Continued strong adoption of Acumen IQ sensors, Swan-Ganz catheters and pressure monitoring devices used in the ICU is expected to have contributed to growth. A positive trend in terms of heart failure hospitalization is likely to have benefited sales within Critical Care, thus adding to the top line.
Our model predicts the segment’s second-quarter revenues to be $241.6 million, suggesting a 3% rise from the year-ago quarter’s reported figure.
Note that on Jun 3, 2024, the company entered into a definitive agreement to sell the Critical Care product group toBecton, Dickinson and Company or BD for a total value of $4.2 billion. The transaction is expected to be completed by the end of 2024.
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. SAPIEN currently occupies the majority of the company’s sales within the United States.
During the first quarter, the company reported $1 billion in sales within TAVR for the first time, banking on strong performances within the United States and Japan as a result of a favorable global competitive position and stable selling prices. Considering the global trade situation and hospitalization trend remaining unchanged through the second-quarter months, we expect TAVR to report strong sales numbers for the second quarter as well.
More specifically, the launch of the SAPIEN 3 Ultra RESILIA valve in Europe in May 2024 might have contributed to sales of TAVR in the second quarter.
Image Source: Zacks Investment Research
The company’s Transcatheter Mitral and Tricuspid Therapies (TMTT) segment’s PASCAL platform is likely to have maintained strong growth momentum in the second 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 adoption of the EVOQUE tricuspid replacement system and the strong performance of the SAPIEN M3 mitral replacement system in the United States and Europe.
Our model estimates the Transcatheter Heart Valves business to report revenues of $1.14 billion, implying a 10% improvement from the year-ago period.
Within Surgical Structural Heart, the company is expected to have recorded strong second-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 global adoption of premium surgical technologies, including the MITRIS RESILIA valve, INSPIRIS and KONECT. In the second quarter, the company is expected to have witnessed procedure growth globally within Surgical.
Our model estimates the segment’s second-quarter revenues to be $258.3 million, suggesting a 0.8% rise from the year-ago quarter’s reported figure.
However, staffing shortages, which reduced hospital capacity, and choppy market conditions due to a difficult geopolitical situation are likely to have impeded the company’s growth in the quarter to be reported.
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 +0.58%. 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 #3.
Other 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 this quarter.
The company is expected to release second-quarter 2024 results soon. National Vision’s earnings are expected to decline 17.2% in 2024. National Vision surpassed earnings in each of the trailing four quarters, the average being 62.06%.
Glaukos (GKOS - Free Report) has an Earnings ESP of +12.53% and a Zacks Rank #2. The company is due to release second-quarter 2024 results on Jul 31.
Glaukos has an expected earnings growth of 1.3% for 2024. Glaukos is also expected to witness revenue growth of 15.1% in 2024.
Tandem Diabetes Care (TNDM - Free Report) has an Earnings ESP of +23.54% and a Zacks Rank of 3 at present. The company is scheduled to release its second-quarter 2024 results on Aug 1.
Tandem Diabetes has an expected revenue growth of 15.8% for 2024. Tandem Diabetes has a trailing four-quarter average earnings surprise of 9.92%.
Image: Bigstock
Is a Beat Likely for Edwards Lifesciences (EW) in Q2 Earnings?
Edwards Lifesciences Corporation (EW - Free Report) is scheduled to report second-quarter 2024 results on Jul 24, after market close.
In the last reported quarter, the company’s adjusted earnings per share of 66 cents exceeded the Zacks Consensus Estimate by 3.13%. 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 1.17% on average.
Q2 Estimates
The Zacks Consensus Estimate for the company’s second-quarter 2024 revenues is pegged at $1.65 billion, suggesting a rise of 8.1% from the year-ago reported figure.
The Zacks Consensus Estimate for second-quarter 2024 net earnings of 70 cents per share indicates a 6.1% improvement from the year-ago reported figure.
For the second quarter of 2024, the company projected total sales to be between $1.62 and $1.70 billion. It expects adjusted EPS in the band of 67 cents to 71 cents.
Estimate Revision Trend Ahead of Earnings
Estimates for Edwards Lifesciences’ second-quarter earnings remained unchanged at 70 per share in the past 90 days.
Let's briefly look at how things have progressed for the MedTech major leading up to this announcement.
Factors at Play
Similar to the last reported quarter, Edwards Lifesciences is likely to have gained from its patient-focused innovation strategy. A favorable hospitalization trend, strong global adoption of transcatheter heart valves and improved procedural volume are expected to have driven growth in the second quarter.
In Critical Care, continued demand for Smart Recovery portfolio is likely to be reflected in the second-quarter results. Continued strong adoption of Acumen IQ sensors, Swan-Ganz catheters and pressure monitoring devices used in the ICU is expected to have contributed to growth. A positive trend in terms of heart failure hospitalization is likely to have benefited sales within Critical Care, thus adding to the top line.
Our model predicts the segment’s second-quarter revenues to be $241.6 million, suggesting a 3% rise from the year-ago quarter’s reported figure.
Note that on Jun 3, 2024, the company entered into a definitive agreement to sell the Critical Care product group to Becton, Dickinson and Company or BD for a total value of $4.2 billion. The transaction is expected to be completed by the end of 2024.
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. SAPIEN currently occupies the majority of the company’s sales within the United States.
During the first quarter, the company reported $1 billion in sales within TAVR for the first time, banking on strong performances within the United States and Japan as a result of a favorable global competitive position and stable selling prices. Considering the global trade situation and hospitalization trend remaining unchanged through the second-quarter months, we expect TAVR to report strong sales numbers for the second quarter as well.
More specifically, the launch of the SAPIEN 3 Ultra RESILIA valve in Europe in May 2024 might have contributed to sales of TAVR in the second quarter.
Image Source: Zacks Investment Research
The company’s Transcatheter Mitral and Tricuspid Therapies (TMTT) segment’s PASCAL platform is likely to have maintained strong growth momentum in the second 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 adoption of the EVOQUE tricuspid replacement system and the strong performance of the SAPIEN M3 mitral replacement system in the United States and Europe.
Our model estimates the Transcatheter Heart Valves business to report revenues of $1.14 billion, implying a 10% improvement from the year-ago period.
Within Surgical Structural Heart, the company is expected to have recorded strong second-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 global adoption of premium surgical technologies, including the MITRIS RESILIA valve, INSPIRIS and KONECT. In the second quarter, the company is expected to have witnessed procedure growth globally within Surgical.
Our model estimates the segment’s second-quarter revenues to be $258.3 million, suggesting a 0.8% rise from the year-ago quarter’s reported figure.
However, staffing shortages, which reduced hospital capacity, and choppy market conditions due to a difficult geopolitical situation are likely to have impeded the company’s growth in the quarter to be reported.
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 +0.58%. 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 #3.
Other 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 this quarter.
National Vision (EYE - Free Report) has an Earnings ESP of +193.33% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to release second-quarter 2024 results soon. National Vision’s earnings are expected to decline 17.2% in 2024. National Vision surpassed earnings in each of the trailing four quarters, the average being 62.06%.
Glaukos (GKOS - Free Report) has an Earnings ESP of +12.53% and a Zacks Rank #2. The company is due to release second-quarter 2024 results on Jul 31.
Glaukos has an expected earnings growth of 1.3% for 2024. Glaukos is also expected to witness revenue growth of 15.1% in 2024.
Tandem Diabetes Care (TNDM - Free Report) has an Earnings ESP of +23.54% and a Zacks Rank of 3 at present. The company is scheduled to release its second-quarter 2024 results on Aug 1.
Tandem Diabetes has an expected revenue growth of 15.8% for 2024. Tandem Diabetes has a trailing four-quarter average earnings surprise of 9.92%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.