What's in Store for Edwards Lifesciences (EW) in Q4 Earnings?
Edwards Lifesciences Corporation EW is expected to report fourth-quarter 2022 results on Jan 25, 2023.
In the last reported quarter, the company’s adjusted earnings per share of 61 cents missed the Zacks Consensus Estimate by 1.6%. The company’s earnings beat estimates in one of the trailing four quarters, met the same in one and missed two. EW has a trailing four-quarter negative surprise of 1.36%, on average.
Let's see how things have shaped up prior to this announcement.
Factors at Play
Critical Care
Edwards Lifesciences is likely to have gained from the continued demand for its state-of-the-art HemoSphere monitoring platform. The increase in hospital visits with the improving market scenario is likely to have benefited HemoSphere sales, thus adding to the top line. In the prior quarter, the company’s portfolio of Smart Recovery sensors, including FloTrac and ClearSight sensors with our unique hypotension prediction index algorithm, witnessed increased adoption by supporting more patients in the intensive care unit. We believe this trend to have continued in the fourth quarter, benefiting the segment’s results.
Our model shows a 3.2% year-over-year decline in Critical Care revenues in the fourth quarter.
The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $212 million, in line with the year-ago quarter’s reported figure.
Surgical Structural Heart
Edwards Lifesciences is likely to have gained from the increased penetration of the company’s premium RESILIA products. Edwards Lifesciences has seen strong adoption of the MITRIS RESILIA valve in the United States since its initial launch in April and represents most of the mitral valve sales in this region. Based on the market adoption of the company’s newest premium technologies and surgical market growth, fourth-quarter revenues in the segment are expected to have been strong for Edwards Lifesciences.
Edwards Lifesciences Corporation Price and EPS Surprise
Edwards Lifesciences Corporation price-eps-surprise | Edwards Lifesciences Corporation Quote
Our model shows a 17.5% year-over-year rise in Surgical Structural Heart revenues in the fourth quarter.
The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $231 million, suggesting a rise of 4.5% from the year-ago quarter’s reported figure.
Other Factors at Play
Within the Transcatheter Aortic Valve Replacement (TAVR) arm, the company is likely to have witnessed continued growth in TAVR procedures across the United States and worldwide. During the last reported quarter, the company received approval to sell the SAPIEN 3 Ultra RESILIA valve in the United States. Additionally, enrollment accelerated in the 2 TAVR pivotal trials to progress in evaluating patients with moderate AS and alliance for next-generation TAVR technology — SAPIEN X4. These developments are likely to have boosted company’s fourth-quarter sales within the business.
The company’s Transcatheter Mitral and Tricuspid Therapies segment’s PASCAL platform is likely to have maintained strong growth momentum in the fourth quarter. This rally is expected to have been driven by the strong adoption of the PASCAL system in Europe as the company initiated a limited introduction of PASCAL PRECISION and continues its expansion into more centers in Europe.
However, foreign exchange headwinds and a spike in COVID in Germany — the company’s largest region in Europe — are likely to have impeded the segment’s growth in the quarter to be reported.
Q4 Estimates
The Zacks Consensus Estimate for the company’s fourth-quarter 2022 revenues is pegged at $1.33 billion, suggesting a rise of 0.09% from the year-ago reported figure.
The Zacks Consensus Estimate for its third-quarter 2022 net earnings of 62 cents indicates 19.6% growth from the year-ago reported figure.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP has a higher chance of beating estimates. This is exactly the case here, as you can see below:
Earnings ESP: The company has an Earnings ESP of -4.53%. 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
Some better-ranked stocks from the broader medical space are Biodesix, Inc. BDSX, MedAvail Holdings, Inc. MDVL and AMN Healthcare Services, Inc. AMN, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Biodesix’s 2022 earnings indicates an 11.4% improvement from the prior-year reported number. BDSX has witnessed one upward estimate revision in the past 60 days against none in the opposite direction.
The Zacks Consensus Estimate for MedAvail Holdings’ 2022 bottom line indicates a 37.3% improvement from the prior-year reported number. MDVL has witnessed one upward estimate revision in the past 60 days against none in the opposite direction.
The Zacks Consensus Estimate for AMN Healthcare’s 2022 bottom line indicates a 44% improvement from the prior-year reported number. The consensus estimate for AMN’s top line suggests 30.1% year-over-year growth.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
Biodesix, Inc. (BDSX) : Free Stock Analysis Report
MedAvail Holdings, Inc. (MDVL) : Free Stock Analysis Report
