Edwards Lifesciences Set to Report Q1 Earnings Amid Market Challenges
Edwards Lifesciences Corporation (EW), a $39.4 billion medical technology company headquartered in Irvine, California, focuses on innovative solutions for structural heart disease and critical care monitoring. The firm’s diverse product range includes tissue heart valves, valve repair systems, hemodynamic monitoring devices, angioscopy tools, oxygenators, and related pharmaceuticals. Analysts are anticipating that the company will report its fiscal first-quarter earnings for FY2025 on Thursday, April 24.
Preceding this report, experts expect EW to announce a profit of $0.60 per share on a diluted basis. This figure reflects a decrease of 9.1% compared to the $0.66 per share reported in the same quarter last year. Notably, the company has either matched or exceeded Wall Street’s EPS forecasts in each of its last four quarterly reports.
Strong Recent Performance and Future Projections
In its previous quarter, Edwards Lifesciences posted an EPS of $0.59, surpassing consensus estimates by 7.3%. This success was attributed to robust demand for its transcatheter heart valve therapies, ongoing strength in its critical care segment, and effective cost management strategies.
Looking ahead, analysts project EW will report an EPS of $2.45 for the current year, a slight rise from the $2.43 reported in fiscal 2024. They also anticipate a 12.2% year-over-year increase, bringing the EPS to $2.75 in fiscal 2026.
Market Performance and Analyst Sentiment
Despite its positive performance metrics, EW shares have underperformed the broader market over the past year, declining 24.9% compared to the S&P 500’s ($SPX) 4.7% gain. The stock also lagged behind the Health Care Select Sector SPDR Fund’s (XLV) 3.2% drop during the same time frame.
Following its Q4 earnings announcement on February 12, the company experienced a significant surge in share prices, rising by 6.9%. In that report, Edwards Lifesciences revealed a 9% increase in sales to $1.4 billion, exceeding analyst expectations. Notably, the Transcatheter Aortic Valve Replacement (TAVR) segment generated $1.04 billion in sales, marking a 6% increase compared to the previous year. Additionally, the Transcatheter Mitral and Tricuspid Therapies (TMTT) segment saw remarkable growth, with sales jumping by 88% to $105 million. The Surgical segment also performed well, achieving global sales of $244 million, a 6% increase from last year.
Analyst Ratings and Price Targets
Consensus opinions about EW stock among analysts are moderately optimistic, resulting in a “Moderate Buy” rating overall. Among 28 analysts tracking the stock, 11 recommend a “Strong Buy,” one a “Moderate Buy,” 15 suggest a “Hold,” and one analyst advises a “Strong Sell.”
The average price target set by analysts for EW stands at $79.11, signaling a potential upside of 13.2% from current prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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