July 25, 2024 - $Edwards Lifesciences (EW.US)$shares slumped 21.39% to $68.35 in pre-market trading on Thursday. The company has reported its financial results for the quarter ended June 30, 2024 after market close on Wednesday.

Highlights and Outlook

• Q2 sales grew 7%; constant currency sales grew 8%.

• Q2 TAVR sales grew 5%; constant currency sales grew 6%.

• Q2 TMTT sales grew 75%; increasing contribution to Edwards' growth.

• Q2 EPS of $0.61; adjusted EPS of $0.70.

• Significant TAVR and TMTT clinical evidence to be presented at TCT in October 2024.

• Positive EVOQUE introduction with excellent patient outcomes; NCD process on track.

• Critical Care sale expected to close late Q3 2024.

• Expect full-year 2024 Edwards sales growth of 8 to 10%; lowering TAVR guidance to 5 to 7% from 8 to 10%; increasing TMTT guidance to the higher end of $320 to $340 million.

“Second quarter total company sales growth of 8 percent reflected strong contributions from our rapidly growing TMTT product group, offset by lower-than-expected growth in TAVR," said Bernard Zovighian, CEO. “Edwards is well-positioned to deliver sustainable TAVR growth in 2025 and beyond, driven by advancements in our leading SAPIEN platform, indication expansions to much larger populations of patients, and improving patient access to this important therapy. Our vision for TMTT is becoming a reality, and our strategic commitment has developed into a growth portfolio of differentiated technologies. We are confident in Edwards' strategy in structural heart supported by the broadening TAVR opportunity, accelerating contributions of our TMTT therapies, and our expanding portfolio of structural heart innovations that addresses the unmet needs of millions of patients around the world."

Outlook

Based on current trends, the company anticipates second half TAVR sales growth similar to the first half year-over-year growth rate, or 5 to 7% full-year growth versus previous guidance of 8 to 10%. For TMTT, based on first half momentum, the company is increasing full-year sales guidance to the higher end of the previous $320 to $340 million range. The company remains confident in full-year Surgical sales growth of 6 to 8%.

The company expects Q3 sales of $1.56 to $1.64 billion, assuming Critical Care is included for the entire third quarter. The company expects EPS in Q3 of $0.67 to $0.71, assuming the inclusion of Critical Care and no impact from previously announced acquisitions. The company will provide pro forma information for Q4 2024 when third quarter results are reported, reflecting the sale of Critical Care and the acquisitions announced this month.

About Edwards Lifesciences

Edwards Lifesciences is the global leader of patient-focused innovations for structural heart disease and critical care monitoring. We are driven by a passion for patients, dedicated to improving and enhancing lives through partnerships with clinicians and stakeholders across the global healthcare landscape.