Edwards Lifesciences reported slightly better-than-expected second-quarter financials late Wednesday, as sales from its technology to replace faulty heart valves without resorting to open-heart surgery increased 9%. The medtech company also adjusted its full-year profit and revenue outlook. However, EW stock tumbled on earnings.
The California-based company said earnings grew 5% to 66 cents per share while sales increased 11% to $1.53 billion in the second quarter. In constant currency, sales grew 12%. Analysts expected earnings to grow 3% to 65 cents per share with sales totaling $1.5 billion, up 9% vs. the year-earlier quarter.
"We anticipate a year of value creation as we pursue important therapies that will benefit many more patients," Chief Executive Bernard Zovighian said in a written statement Wednesday.
Edward Lifesciences stock plunged 9.8% to close at 82.67 Thursday during market trade. Ahead of earnings on Wednesday, EW edged down a fraction to 91.63.
Before Thursday trade, Edwards Lifesciences stock gained more than 22% in 2023. EW has been trading above its 50-day moving average since June 13. However, Edwards Lifesciences stock's relative strength rating is trending lower.
EW Stock: Earnings Outlook Hiked
Sales of Edwards' key product, its transcatheter aortic heart-valve replacements, or TAVR, totaled $992 million during the quarter, up 9% vs. the year-earlier period. TAVR is a method of replacing a diseased heart valve without resorting to open-heart surgery. Wall Street predicted TAVR sales jumping 9% to $991 million.
Meanwhile, Edwards reported surgical sales jumping 12% to $256 million. Edwards also reported $48 million in sales from its transcatheter mitral and tricuspid therapies. These products treat other valve problems in the heart and don't require surgery.
Edwards expects full-year 2023 sales from $5.9 billion to $6.1 billion, up from the previous estimate of $5.6 billion to $6.0 billion. The company also lifted its 2023 earnings outlook to $2.50 to $2.60 per share, compared with its previous forecast of $2.48 to $2.60.
Edwards also forecast full-year TAVR sales of $3.85 billion to $4.0 billion, with sales growth between 10% and 13% on a constant currency basis, up from 10% to 12%.
EW stock has a Composite Rating of 84 out of 99, with a 54 Relative Strength Rating. Edwards also has an EPS Rating of 90 out of 99.
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