Edwards Lifesciences (NYSE:EW) shares are down after hours on second-quarter results that missed the consensus forecast on Wall Street, with the cardio device company reducing 2022 guidance amid foreign exchange headwinds and hospital staffing challenges.
The Irvine, California–based company earned $406.4 million, or 65¢ per share, off $1.37 billion for the three months ended June 30, 2022, for a slide of 17% on the bottom line and 0.1% on the top line.
Adjusted to exclude one-time items, EPS were 63¢, a penny behind The Street, where analysts on average expected EPS of 64¢ on $1.4 billion in sales.
“Although hospital staffing remains uncertain, we continue to have confidence in our longer-term outlook,” Edwards Lifesciences CEO Michael A. Mussallem said in a news release. “We remain aggressive investors in research and development and clinical research, and we look forward to sharing new, groundbreaking clinical trial results later this year.”
TAVR sales in Q2 were only up 1%, which equates to 5% on an underlying basis, year-over-year. In the transcatheter mitral and tricuspid therapies space, Edwards expects FDA approval of the Pascal Precision platform late this year.
The reduced guidance for 2022 included full-year 2022 sales of $5.35–5.55 billion ($3.5–3.7 billion for TAVR) — and full-year adjusted EPS at the bottom end of the original $2.50–2.65, still representing double-digit growth over 2021. The Street has been projecting an adjusted EPS of $2.56 for the year.
Mussallem said company leadership remains optimistic about long-term growth opportunities.
Investors reacted by sending EW shares down more than 4% to $101.95 in after-hours trading.