Edwards Lifesciences Prepares for Q4 Earnings Announcement
Analysts Forecast Mixed Results as Fiscal Year Ends
Edwards Lifesciences Corporation (EW), based in Irvine, California, focuses on advanced products for structural heart disease and critical care monitoring. With a market capitalization of $43.4 billion, the company develops various products, including tissue replacement heart valves, heart valve repair solutions, hemodynamic monitoring devices, angioscopy equipment, oxygenators, and pharmaceuticals. On Tuesday, Feb. 4, EW is set to release its fiscal fourth-quarter earnings for 2024.
Analysts predict that EW will report earnings of $0.55 per share on a diluted basis, reflecting a 14.1% decrease from $0.64 per share reported in the same quarter last year. The company has consistently met or exceeded Wall Street’s earnings per share (EPS) expectations in its last four quarterly reports, showcasing its ability to navigate tough financial landscapes.
For the entire fiscal year, expected EPS for EW stands at $2.56, representing a slight increase of 2% from $2.51 in fiscal 2023. However, projections indicate a decline of 4.3% year over year to $2.45 in fiscal 2025, raising concerns about future profitability.
In the past 52 weeks, EW stock has lagged behind the S&P 500 index, which gained 24.2%, with EW shares declining by 2% during the same period. It also underperformed the Health Care Select Sector SPDR Fund (XLV), which saw only slight gains in this timeframe. This downturn can largely be linked to the company’s choice to sell off its critical care unit, aiming to refocus its core business.
Following the release of its Q3 results on Oct. 24, EW shares experienced a slight decline. The company reported adjusted EPS of $0.67, meeting analyst expectations, with revenue reaching $1.4 billion—a robust increase of 8.9% from the previous year. Looking ahead to Q4, EW anticipates revenue between $1.3 billion and $1.4 billion.
Overall, analysts hold a moderately bullish view on EW stock, with a “Moderate Buy” rating. Among 28 analysts covering the stock, 10 recommend a “Strong Buy” rating, one suggests a “Moderate Buy,” and 17 advise a “Hold.” The average analyst price target stands at $78.32, signaling a potential increase of 5.6% from current levels.
On the date of publication,
Neha Panjwani
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
