Earnings Review and Free Research Report: Edwards Lifesciences’ Sales Grew 11.1%; Adjusted EPS Surged 23.5%

Research Desk Line-up: Align Technology Post Earnings Coverage

LONDON, UK / ACCESSWIRE / October 31, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Edwards Lifesciences Corp. (NYSE: EW), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=EW, following the Company’s posting of its third quarter fiscal 2017 operating results on October 24, 2017. The medical device maker’s sales and earnings numbers came in below market expectations, while it re-affirmed its FY17 guidance. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Medical Appliances & Equipment industry. Pro-TD has currently selected Align Technology, Inc. (NASDAQ: ALGN) for due-diligence and potential coverage as the Company reported on October 26, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Align Technology when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on EW; also brushing on ALGN. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

Edwards Lifesciences’ sales for the quarter ended September 30, 2017, were $821.5 million, up 11.1% compared to sales of $739.4 million in Q3 2016. The Company’s sales fell short of analysts’ estimates of $834 million.

According to Edwards Lifesciences, including the consumption of $17.0 million of stocking inventory in Germany, adjusted sales were $838.5 million for the reported quarter, up 12.9% on a y-o-y basis.

For Q3 2017, Edwards Lifesciences’ gross profit margin was 74.0% compared to 72.8% in Q3 2016, the improvement primarily reflecting the benefit of a more profitable business mix, led by growing sales of TAVR, as well as a favorable comparison of supply chain expenses. The Company’s selling, general, and administrative (SG&A) expenses increased 6.5% to $244.6 million on a y-o-y basis for the reported quarter, driven by personnel and sales related expenses primarily in support of the transcatheter heart valve therapy (THVT) product-line.

During Q3 2017, Edwards Lifesciences’ research and development (R&D) investments increased 26.5% to $142.9 million on a y-o-y basis, primarily attributed to the continued investments in mitral and aortic transcatheter valve programs.

Edwards Lifesciences’ net income was $170.1 million, or $0.79 per share, for Q3 2017 compared to earnings of $141.4 million, or $0.65 per diluted share, in Q3 2016. The Company’s adjusted earnings surged 23.5% to $0.84 per share. Edwards Lifesciences’ earnings lagged behind Wall Street’s expectations of $0.86 per share.

Edwards Lifesciences’ Segment Results

During Q3 2017, Edwards Lifesciences recorded THVT’s sales of $481.2 million, representing 17.3% growth over Q3 2016 net sales of $410.1 million. For the reported quarter, adjusted THVT sales were $498.2 million, up 20.5% on an underlying basis. THVT’s sales growth was strong both inside and outside the US driven by continued therapy adoption and was consistent with the Company’s expectations of a $5-plus-billion-opportunity by 2021. For Q3 2017, THVT ‘s sales in the US rose 20.1% to $311.6 million on a y-o-y basis.

For Q3 2017, Surgical Heart Valve Therapy sales totaled $195.6 million, up 2.4% compared to sales of $190.9 million in Q3 2016. The segment’s growth was driven by strong performance of the INTUITY Elite valve system and solid growth in core products outside the US.

During Q3 2017, the Company’s Critical Care sales were $144.7 million, representing an increase of 4.5% versus Q3 2016 sales of $138.4 million, or 5.2% on an underlying basis. The segment performance was attributed to solid growth of core products and the Enhanced Surgical Recovery program, particularly in the US and Asia/ Pacific.

Cash Matters

During Q3 2017, Edwards Lifesciences’ cash flow from operating activities was $310.8 million. After capital spending of $42.3 million, the Company’s free cash flow was $268.5 million for the reported quarter. As of September 30, 2017, Edwards Lifesciences’ cash, cash equivalents, and short-term investments totaled $1.4 billion; while the Company’s total debt was $1.0 billion.

Outlook

For the full year 2017, Edwards Lifesciences reaffirmed its sales estimate at the high-end of its $3.2 billion to $3.4 billion guidance and its forecast for 2017 adjusted earnings per share of $3.65 to $3.85.

For Q4 2017, at current foreign exchange rates, the Company is projecting adjusted sales to be between $855 and $895 million, and adjusted EPS to be between $0.84 and $0.94.

Stock Performance

On Monday, October 30, 2017, the stock closed the trading session at $101.63, marginally down 0.28% from its previous closing price of $101.92. A total volume of 1.95 million shares have exchanged hands, which was higher than the 3-month average volume of 1.42 million shares. Edwards Lifesciences’ stock price rallied 5.69% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 8.46%. The stock is trading at a PE ratio of 29.54. At Monday’s closing price, the stock’s net capitalization stands at $21.77 billion.

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