Get the Latest Investment Ideas Delivered Straight to Your Inbox.

TICKERS: EW

Edwards Lifesciences Gets a Charge on Positive Q2 Earnings Report

Source:

Edwards Lifesciences is trading higher after reporting higher than expected adjusted earnings for Q2/19. The company estimates that the FDA will approve its SAPIEN 3 valve and SAPIEN 3 Ultra system in Q3/19.

Structural heart disease and critical care monitoring device and platform firm Edwards Lifesciences Corp. (EW:NYSE) announced second quarter earnings after the market closed yesterday.

The firm reported sales for Q2/19 ending June 30, 2019, were $1.1 billion, up 15% over the prior year, or 14% on an underlying basis. Fully diluted earnings per share (EPS) for the quarter decreased to $1.14, while adjusted EPS grew higher than expected by 11% to $1.38.

For Q2/19, the company reported Transcatheter Aortic Valve Replacement (TAVR) sales increased to $678 million in Q2/19, an increase of 16% over Q2/18, or 18% on an underlying basis. According to the company, those results grew in-line with estimated global procedure growth. Edwards advised that global average selling prices remained stable, and its global competitive position was consistent with both Q1/19 and Q2/18.

Surgical Structural Heart sales for the Q2/19 were $218 million, up 15% compared to Q2/18 and Critical Care sales were $184 million for Q2/19, up 9% over Q2/18 boosted by strong growth of HemoSphere advanced monitoring platform sales in the U.S.

Chairman and CEO of Edwards Lifesciences Michael A. Mussallem stated, "We are pleased to report stronger than expected sales growth in the second quarter, which continued a long-term trend of reaching more patients with innovative therapies and creating value. . .Increased demand for TAVR therapy resulted in underlying total company sales growth of 14 percent, which also reflected strength in all four of our product lines across all regions."

Mr. Mussallem added, "We now estimate that in Q3/19 the FDA will approve the SAPIEN 3 valve and SAPIEN 3 Ultra system for patients with low surgical risk. Over time, we expect the SAPIEN 3 Ultra valve system will replace SAPIEN 3 valve globally."

The company updated its business outlook: "For 2019, the company now expects total sales to be between $4.0 billion and $4.3 billion, with underlying sales growth around the top end of its previous 9 to 12% range. Additionally, the company raised its full year 2019 adjusted earnings per share guidance to $5.20 to $5.40 from $5.10 to $5.35. For the third quarter 2019, the company projects total sales to be between $1.02 billion and $1.06 billion, and adjusted EPS of $1.13 to $1.23."

Based in Irvine, Calif., Edwards Lifesciences identifies itself as the global leader in patient-focused medical innovations for structural heart disease and critical care monitoring and states that its commitment to transformational heart valve technology began in 1960 with the first commercially available heart valve. Product offerings include tissue replacement heart valves and repair products, as well as transcatheter heart valves for those patients considered at intermediate or greater risk for conventional valve replacement.

Edwards also provides technologies that facilitate on-pump cardiac surgery procedures through smaller incisions. Theses minimally invasive valve surgery solutions include soft tissue retractors, venous and arterial cannulae, aortic occlusion, venting and coronary sinus catheters. Edwards additionally provides evidence-based programs such as Enhanced Surgical Recovery Program that support the implementation and compliance to protocolized care pathways in the OR and ICU.

The firm's shares opened 11.63% higher today at $218.16 (+$22.70) over the prior day's $195.46 closing price. Shares have traded today between $211.34-219.71 on higher than average volume setting both an intraday 52-week and 5-year high price. The stock is currently trading at $211.41/share (+15.95, +8.16%).

[NLINSERT]

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.




Want to read more about Medical Devices and Biotechnology / Pharmaceuticals investment ideas?
Get Our Streetwise Reports Life Sciences Report Newsletter Free and be the first to know!

A valid email address is required to subscribe