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Edwards Lifesciences (EW) to Post Q3 Earnings: What's in Store?

Edwards Lifesciences Corporation EW is expected to report third-quarter 2021 results on Oct 20, after market close.

In the last reported quarter, the company’s adjusted earnings per share of 54 cents surpassed the Zacks Consensus Estimate by 16.4%. The company beat earnings estimates in three of the trailing four quarters and missed once, the average surprise being 9.73%.

Let's see how things have shaped up prior to this announcement.

Factors at Play

Critical Care

Like the last-reported quarter, Edwards Lifesciences is likely to have witnessed a rebound in its business in the third quarter, banking on reopening of the economy and an increase in non-COVID hospital visits.

During the second quarter, Edwards Lifesciences registered strong growth in HemoSphere orders as hospital spending in the United States continued to rise. We believe this to have continued in the fiscal third quarter of 2021 due to market recovery, thus adding to the top line.

The products used in high-risk surgeries witnessed high demand in the second quarter along with recovery in ClearSight non-invasive finger cuff demand. This, too, is expected to have continued through the fiscal third quarter on increasing elective procedure demand.

In June 2021, the company received FDA clearance for the software algorithm that powers the Hypotension Prediction Index (HPI) on HemoSphere and the Acumen IQ cuff. This is likely to have registered strong market adoption, thus adding significantly to third-quarter revenues.

The Zacks Consensus Estimate for the segment’s third-quarter revenues is pegged at $205 million, implying a rise of 13.3% from the last quarter’s reported figure.

Surgical Structural Heart

Edwards Lifesciences is optimistic about robust global adoption of its premium RESILIA tissue valves within the Surgical Structural Heart Group, including the INSPIRIS aortic surgical valve and the KONECT aortic valve conduit. The INSPIRIS valve utilization, similar to the previous quarter, is expected to have continued with strong sales momentum in the third quarter, banking on the rebound in surgical aortic treatment rates and improvement in global surgical procedure volumes.

Similar to the last-report quarter, Edwards Lifesciences is likely to have registered strong adoption of Edwards RESILIA tissue valves bolstered by the four-year mitral data from the COMMENCE clinical trial presented at the meeting of the American Association of Thoracic Surgery as well as the growing body of RESILIA clinical evidence, which demonstrates excellent durability of this tissue technology, even in the high pressure mitral position. This is expected to have contributed to third-quarter revenues.

The Zacks Consensus Estimate for the segment’s third-quarter revenues is pegged at $225 million, implying a rise of 10.8% from the last-reported quarter’s reported figure.

Other Factors at Play

Within the Transcatheter Aortic Valve Replacement arm, the company is expected to have continued to record increased global sales in the third quarter on robust adoption of the SAPIEN valve platform led by its low complication rates and easy-to-use design. The company received approval to begin treating patients at low surgical risk in Japan with SAPIEN 3 valves in April 2021. The development is expected to have contributed significantly to the company’s third-quarter revenue growth.

The Zacks Consensus Estimate for the segment’s third-quarter revenues is pegged at $873 million, implying a surge of 17.2% from the last quarter’s reported figure.

Edwards Lifesciences Corporation Price and EPS Surprise

Edwards Lifesciences Corporation Price and EPS Surprise

Edwards Lifesciences Corporation price-eps-surprise | Edwards Lifesciences Corporation Quote

The company’s Transcatheter Mitral and Tricuspid Therapies segment’s PASCAL transcatheter valve repair system and the newly-introduced PASCAL Ace are likely to have continued their strong momentum in the third quarter. Further, sales proceeds from the progress of both transfemoral EVOQUE and SAPIEN M3 platforms are likely to have contributed to the third-quarter top line.

The Zacks Consensus Estimate for the segment’s third-quarter revenues is pegged at $23.8 million, implying an uptick of 96.6% from the year-earlier quarter’s reported figure.

The Estimate Picture

The Zacks Consensus Estimate for third-quarter 2021 revenues is pegged at $1.33 billion, suggesting an improvement of 16.4% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for third-quarter 2021 earnings is pegged at 53 cents, indicating a rise of 3.9% from the year-ago quarter’s reported figure.

What Our Model Suggests

Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has higher chances of beating estimates. However, this is not the case here as you can see:

Earnings ESP: Edwards Lifesciences has an Earnings ESP of 0.00%. 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

Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.

UnitedHealth Group Incorporated UNH has an Earnings ESP of +1.95% and currently carries a Zacks Rank of 2. The company is slated to release third-quarter 2021 results on Oct 14. You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher Scientific Inc. TMO has an Earnings ESP of +0.79% and currently holds a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct 20.

West Pharmaceutical Services, Inc. WST has an Earnings ESP of +1.93% and is a Zacks #2 Ranked stock. The company will announce third-quarter figures on Oct 28.


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Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

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UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report

Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report

Edwards Lifesciences Corporation (EW): Free Stock Analysis Report

West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report

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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.

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