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Edwards Lifesciences (EW) to Post Q4 Earnings: What's in Store?

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Edwards Lifesciences Corporation EW is slated to report fourth-quarter 2021 results on Jan 26, after market close.

In the last reported quarter, the company’s adjusted earnings per share of 54 cents surpassed the Zacks Consensus Estimate by 1.9%. The company beat earnings estimates in three of the trailing four quarters and missed once, the average surprise being 6.87%.

Let's see how things have shaped up prior to this announcement.

Factors at Play

Critical Care

During the last-reported third quarter, Edwards Lifesciences registered strong growth in HemoSphere orders as hospital spending in the United States continued to rise. We believe this to have continued in the fiscal fourth quarter of 2021 due to the market's reopening and increased hospital visits, thus adding to the top line.

The products used in high-risk surgeries witnessed high demand in the third quarter along with recovery in ClearSight non-invasive finger cuff demand. This, too, is expected to have continued through the fiscal fourth quarter on increasing elective procedure demand.

The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $209 million, implying a rise of 5.6% from the year-ago quarter’s reported figure.

Surgical Structural Heart

Edwards Lifesciences is optimistic about robust global adoption of its premium RESILIA tissue valves within the Surgical Structural Heart Group, including the INSPIRIS aortic surgical valve and the KONECT aortic valve conduit. The INSPIRIS valve utilization, similar to the previous quarter, is expected to have continued with strong sales momentum in the fourth quarter, banking on the rebound in surgical aortic treatment rates and improvement in global surgical procedure volumes.

Similar to the last-report quarter, Edwards Lifesciences is likely to have registered strong adoption of Edwards RESILIA tissue valves as this advanced tissue treatment is increasing supported by a growing body of real-world evidence as demonstrated at the European Association of Cardiothoracic Surgeons annual meeting in 2021 as well as the growing body of RESILIA clinical evidence, which demonstrates excellent durability of this tissue technology, even in the high-pressure mitral position. This is expected to have contributed to fourth-quarter revenues.

Edwards Lifesciences Corporation Price and EPS Surprise

Edwards Lifesciences Corporation Price and EPS Surprise
Edwards Lifesciences Corporation Price and EPS Surprise

Edwards Lifesciences Corporation price-eps-surprise | Edwards Lifesciences Corporation Quote

The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $223 million, implying a rise of 9.3% from the year-ago quarter’s reported figure.

Other Factors at Play

Within the Transcatheter Aortic Valve Replacement (TAVR) arm, the company is expected to have continued to record increased global sales in the fourth quarter on robust adoption of the SAPIEN 3 Ultra platform led by its low complication rates and easy-to-use design. The company received reimbursement approval in the third quarter for treating patients at low surgical risk with SAPIEN 3. In December 2021, the company received FDA approval to use the Edwards SAPIEN 3 transcatheter valve with the Alterra adaptive prestent (SAPIEN 3 with Alterra) for patients with severe pulmonary regurgitation. These developments are expected to have contributed significantly to the company’s fourth-quarter revenue growth.

The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $887 million, implying a surge of 14.3% from the year-ago quarter’s reported figure.

The company’s Transcatheter Mitral and Tricuspid Therapies (TMTT) segment’s PASCAL transcatheter valve repair system and the newly-introduced PASCAL Ace are likely to have continued their strong momentum in the fourth quarter. Further, as the company continues to treat patients with transcatheter mitral replacement therapies through the ENCIRCLE pivotal trial, the sales proceeds from the progress of both transfemoral EVOQUE and SAPIEN M3 platforms are likely to have contributed to the fourth-quarter top line.

The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $26.3 million, implying an uptick of 100.4% from the year-ago quarter’s reported figure.

The Estimate Picture

The Zacks Consensus Estimate for the company’s fourth-quarter 2021 revenues is pegged at $1.35 billion, suggesting an improvement of 12.9% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for its fourth-quarter 2021 earnings is pinned at 54 cents, indicating a rise of 8% from the year-ago quarter’s reported figure.

What Our Model Suggests

Our proven model predicts an earnings beat for Edwards Lifesciences this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Edwards Lifesciences has an Earnings ESP of +0.51%. 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.

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

AMN Healthcare Services, Inc. AMN has an Earnings ESP of +10.29% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. The company’s earnings yield of 5.5% compares favorably with the industry’s 0.8%.

Henry Schein, Inc. HSIC has an Earnings ESP of +2.62% and a Zacks Rank of 2.

Henry Schein’s long-term earnings growth rate is estimated at 11.8%. HSIC’s earnings yield of 5.9% compares favorably with the industry’s 4.1%.

Laboratory Corporation of America Holdings LH has an Earnings ESP of +9.58% and a Zacks Rank of 1.

Laboratory Corporation’s long-term earnings growth rate is estimated at 10.6%. LH’s earnings yield of 9.4% compares favorably with the industry’s 3.4%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report

Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report

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AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report

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