Back to top

Image: Bigstock

Edwards Lifesciences' (EW) THVT Likely to Drive Q1 Earnings

Read MoreHide Full Article

Edwards Lifesciences Corporation’s (EW - Free Report) Transcatheter Heart Valve Therapy segment (THVT) business has been on a strong growth trajectory of late. The company has been witnessing continued therapy adoption across all geographies with notable strength in the United States, over the past few quarters.

We expect this strength to get reflected in first-quarter 2018 results, which are scheduled for release after the market closes on Apr 24.

Click here to know how the company’s overall Q1 performance is expected to be.

Spotlight on THVT Business

The THVT business includes technologies designed to treat heart valve diseases using catheter-based approaches as opposed to the open surgical techniques. Over the past few quarters, the THVT business has been a major contributor to the top line. Further, management continues to be bullish on the business. Accordingly, the Zacks Consensus Estimate for THVT net sales of $575 million reflects an increase of 6.7% from the year-ago quarter.

In recent times THVT is on a strong growth trajectory in the United States. The company has been gaining from the receipt of FDA approval for aortic and mitral valve-in-valve procedures, using SAPIEN 3 transcatheter heart valve which is expected to boost the top line at the THVT segment in the to-be-reported quarter as well.

Edwards Lifesciences Corporation Price and EPS Surprise

 

Further, the company is expected to continue to gain from strong SAPIEN 3 clinical performance in the United States, as well as strong therapy implementation across all regions. Accordingly, the Zacks Consensus Estimate for transcatheter heart valves (THV) sales in the United States of $471 million shows an increase of 1.3% from the year-ago quarter.

Outside the United States, the underlying growth rate was impressive with contributions from all regions. Edwards Lifesciences continued to see strong TAVR therapy adoption in Japan driven by SAPIEN 3.

The company has been fortifying its THVT business in Europe as well. In this regard, the company maintained double-digit procedure growth in Europe last reported quarter. Further, Edwards Lifesciences announced the receipt of CE Mark for its self-expanding CENTERA valve in February. The latest development is likely to enhance the company’s prospects in Europe.

However, the Zacks Consensus Estimate for THV sales outside the United States of $212 million reflects a 11.7% drop from the year-ago quarter. We believe the recent developments in THV space will help the company deliver superior performance compared to the last quarter. The Zacks Consensus Estimate for THV sales outside the United States reflects a sequential rise of 9.8%.

Zacks Rank & Stocks to Consider

Edwards Lifesciences carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical sector are Bio-Rad Laboratories (BIO - Free Report) , Laboratory Corporation of America Holdings (LH - Free Report) or LabCorp and Abiomed, Inc .

Bio-Rad Laboratories sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. It has a long-term expected earnings growth rate of 15%.

LabCorp has a long-term expected earnings growth rate of 10.1%. The stock carries a Zacks Rank of 2 (Buy).

Abiomed has a long-term expected earnings growth rate of 31.5%. The stock carries a Zacks Rank of 2.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in