Edwards Lifesciences (EW, Financial) reported impressive financial results for the first quarter, with revenue reaching $1.41 billion, slightly surpassing the analysts' consensus of $1.4 billion. This achievement reflects the company's strategic focus on structural heart solutions and its steadfast commitment to groundbreaking innovation in this pivotal medical field.
CEO Bernard Zovighian highlighted the significance of several milestones that mark progress in expanding the company's potential to transform patient care globally. These accomplishments showcase Edwards Lifesciences' ongoing efforts to seize considerable growth opportunities in the structural heart market.
The company expressed satisfaction with its robust start to the year and maintains an optimistic outlook for 2025. Moving forward, Edwards Lifesciences plans to leverage numerous impactful catalysts, reinforcing its position for substantial growth in the coming years.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 27 analysts, the average target price for Edwards Lifesciences Corp (EW, Financial) is $79.50 with a high estimate of $90.00 and a low estimate of $61.00. The average target implies an upside of 12.83% from the current price of $70.46. More detailed estimate data can be found on the Edwards Lifesciences Corp (EW) Forecast page.
Based on the consensus recommendation from 33 brokerage firms, Edwards Lifesciences Corp's (EW, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Edwards Lifesciences Corp (EW, Financial) in one year is $102.72, suggesting a upside of 45.78% from the current price of $70.46. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Edwards Lifesciences Corp (EW) Summary page.
Key Business Developments
Release Date: February 11, 2025
- Total Sales Q4 2024: $1.39 billion, 9% year-over-year growth.
- Full-Year 2024 Sales: $5.4 billion, 9% growth.
- TAVR Full-Year 2024 Sales: $4.1 billion, 6% year-over-year growth.
- TAVR Q4 2024 Sales: $1.04 billion, 5.3% year-over-year growth.
- TMTT Full-Year 2024 Sales: $352 million, 77% year-over-year growth.
- TMTT Q4 2024 Sales: $105 million.
- Surgical Full-Year 2024 Sales: $981 million, 6% year-over-year growth.
- Surgical Q4 2024 Sales: $244 million, 5% year-over-year growth.
- Adjusted Earnings Per Share Q4 2024: $0.59.
- GAAP Earnings Per Share Q4 2024: $0.58.
- Adjusted Gross Profit Margin Q4 2024: 79%.
- SG&A Expenses Q4 2024: $492 million, 35.5% of sales.
- R&D Expenses Q4 2024: $271 million, 19.6% of sales.
- Adjusted Operating Profit Margin Q4 2024: 25.6%.
- Cash and Cash Equivalents as of Dec 31, 2024: $3 billion.
- 2025 Sales Guidance: $5.6 billion to $6 billion.
- 2025 TAVR Sales Guidance: $4.1 billion to $4.4 billion.
- 2025 TMTT Sales Guidance: $500 million to $530 million.
- 2025 Surgical Sales Guidance: $970 million to $1.05 billion.
- Q1 2025 Sales Guidance: $1.35 billion to $1.43 billion.
- Q1 2025 Adjusted EPS Guidance: $0.58 to $0.64.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Edwards Lifesciences Corp (EW, Financial) reported a strong 9% sales growth for the full year 2024, reaching $5.4 billion, in line with their original guidance.
- The Transcatheter Mitral and Tricuspid Therapies (TMTT) segment exceeded expectations, contributing significantly to the company's growth.
- Strategic acquisitions, including JC Medical, Innovalve, and Endotronix, expanded Edwards' opportunities in new therapeutic areas.
- The company completed the sale of its Critical Care segment, allowing a focused strategy on structural heart technologies.
- Edwards Lifesciences Corp (EW) maintained a strong balance sheet with approximately $3 billion in cash and cash equivalents as of December 31, 2024.
Negative Points
- Transcatheter Aortic Valve Replacement (TAVR) growth was lower than expected, impacting overall sales performance.
- Sales growth in Japan was slower compared to other regions, indicating regional pressure and challenges.
- The company experienced a decrease in adjusted gross profit margin from 80% to 79% year-over-year.
- Selling, general, and administrative expenses increased significantly, reflecting growth in TMTT field-based teams and transition expenses.
- Foreign exchange rates are expected to negatively impact 2025 sales by approximately $130 million.
