Edwards Lifesciences
(NYSE: EW)
shares fell after hours today despite second-quarter results that beat the consensus forecast.
Shares of EW dipped 6.3% to $85.85 apiece after the market closed today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — closed the day up 0.6%.
The Irvine, California-based company posted profits of $307.1 million. That equals 50¢ per share on sales of $1.53 billion for the three months ended June 30, 2023.
Edwards recorded a 24.4% bottom-line slide on sales growth of 11.4%.
Adjusted to exclude one-time items, earnings per share came in at 66¢. That snuck in 1¢ ahead of expectations on Wall Street, where analysts projected sales of $1.5 billion.
“We are pleased to report strong second quarter double-digit sales growth while also making meaningful progress on our innovations to improve patient care globally,” said Bernard Zovighian, Edwards CEO. “This positive first-half performance and improved healthcare staffing gives us increased confidence in our full-year outlook. Looking beyond 2023, we remain confident that our foundation of innovative therapies along with a differentiated technology pipeline positions us well for continued longer-term success.”
What drove growth for Edwards in Q2?
Edwards reported transcatheter aortic valve replacement (TAVR) sales of $992 million, good for 9% growth year-over-year. The company said U.S. and outside the U.S. sales were comparable and, globally, the average selling prices were stable.
In the U.S., improved hospital staffing levels aided TAVR sales, as did the launch of the Sapien 3 Ultra Resilia. Edwards said that remains on track to represent the majority of its U.S. TAVR sales by the end of 2023. Edwards launched the Sapien 3 valve with Reslia in September 2022.
Edwards also reported $48 million in revenue for its transcatheter mitral and tricuspid therapies. Overall transcatheter edge-to-edge repair (TEER) procedure growth, plus the Pascal Precision launch, drove this. Edwards said it remains on track for European approval of its Evoque tricuspid valve by the end of the year.
Additionally, structural heart sales ($256 million) grew by 12%, boosted by the adoption of the Resilia products. Critical care sales totaled $235 million, growing 11% thanks to Edwards’ smart recovery technology portfolio and Acumen IQ sensor adoption.
Edwards increased its full-year sales guidance from between $5.6 billion and $6 billion to between $5.9 billion and $6.1 billion. That’ll be helped by a 1% increase at both ends of the guidance range for TAVR sales, which is now set at 10% to 13%. Edwards expects TAVR sales between $3.85 billion and $4 billion.
The company also upped the low end of its adjusted EPS guidance, previously set for $2.48 to $2.60. It now projects adjusted EPS between $2.50 and $2.60 in 2023.