Edwards Lifesciences slashed its profit outlook, leading EW stock to plummet Friday amid continued hospital staffing and exchange-rate challenges.
On today's stock market, EW stock tumbled 17.9% to 70.87.
For the year, the maker of heart products now expects to earn $2.40-$2.50 per share, down from its prior outlook for $2.50-$2.65. Edwards noted that's still above 2021 levels. On a year-over-year basis, adjusted earnings would climb more than 10%. The company also expects sales to come in at the low end of its guidance for $5.35 billion to $5.55 billion.
"The company anticipates that the U.S. hospital staffing challenge and strong U.S. dollar are likely to persist and now expects total company sales for 2022 at the low end of its previous range," the company said in a news release.
EW Stock: Exchange Rates Weigh On Sales
The guidance cut follows a third-quarter disappointment. Sales grew 1% to $1.32 billion but just missed expectations for $1.33 billion, according to EW stock analysts polled by FactSet. In constant currency, sales grew a stronger 7%.
Earnings advanced 13% to 61 cents per share. But that was a penny under expectations. Edwards noted adjusted earnings took a 7-cent hit after the company discontinued a mitral valve program called Harpoon. The mitral valve is a part of the heart that can become faulty, requiring repair.
Overall, sales of transcatheter aortic heart-valve replacements, or TAVR, rose 1% to $862 million. TAVR is a method of replacing a diseased heart valve without resorting to open-heart surgery. Excluding the impact of exchange rates, sales climbed 6%.
Meanwhile, surgical sales increased 1% to $220 million. In constant currency, those sales rose 8%. Edwards also reported $30 million in sales from its transcatheter mitral and tricuspid therapies. These products treat other valve problems in the heart and don't require surgery.
EW stock has been well below its 50-day moving line since late August, MarketSmith.com shows.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
