According to the Wisdom Financial app, Edwards Lifesciences Corporation (EW.US) announced its financial report after the post-market trading on July 24th (Wednesday). In the performance outlook section, the company expects that the sales growth rate of the TAVR series treatment products for transcatheter aortic valve replacement (TAVR) in 2024 will be lower than the previously announced expectations, and then the company's stock price suffered a sharp decline, with pessimistic expectations causing investors to sell the stock collectively. On Thursday, the stock price of Edwards Lifesciences Corporation plummeted by more than 31% in a single day to $59.70. After a new financial report was released, Wall Street financial giants JPMorgan and Truist both downgraded their ratings on the company and its target stock price within 12 months.

Edwards Lifesciences' total sales in the second quarter only increased by 8% year-on-year, far from market expectations. The company's TAVR sales forecast range was unexpectedly lowered from the previous expected 8% to 10% to 5% to 7%. In terms of wider third-quarter performance expectations, the company expects total sales to be in the range of $1.56 billion to $1.64 billion, and the EPS range to be $0.67 to $0.71, both of which assume intensive care, and are basically in line with market expectations.

According to public information, Edwards Lifesciences Corporation is a global leading edge medical device company headquartered in Irvine, California, USA. The company focuses on the development of innovative products and technologies for the treatment of heart valve disease and intensive care monitoring. Edwards Lifesciences is a pioneer in the innovative breakthrough technology of transcatheter aortic valve replacement (TAVR). TAVR is a precise minimally invasive surgery that is suitable for severe aortic valve stenosis patients who are unable to tolerate traditional open-chest surgery. The new heart valve is delivered to the heart through a catheter and replaces the damaged valve, greatly reducing the risk and recovery time of the surgery. Its main series of products based on TAVR treatment include the SAPIEN series of transcatheter heart valves.

After Edwards Lifesciences announced its performance, JPMorgan, a Wall Street financial giant, downgraded its rating on the stock from "outperform" to "neutral", while Truist downgraded its rating on Edwards Lifesciences from "buy" to "hold".

According to Robbie Marcus, an analyst at JPMorgan, in the research report, due to this crucial performance outlook and Edwards Lifesciences' mixed overall performance in the second quarter, we believe that the sales growth rate of Edwards Lifesciences may not exceed 10% in 2025 and 2026 and accordingly lowered our expected AVR and the company's overall sales and EPS outlook. JPMorgan also significantly lowered Edwards Lifesciences' target stock price within 12 months from $105 to $72. In the latest research report, Richard Newitter, an analyst from Truist, pointed out that "we still see optimistic prospects for the long-term transcatheter mitral and tricuspid valve treatment market and the expanded indications for TAVR. However, the accelerated growth path of 2024-2025 business performance has unexpectedly entered a downward trajectory in our view." Truist significantly lowered Edwards Lifesciences' target stock price within 12 months from $110 to $82.

"We still see optimistic prospects for the long-term transcatheter mitral and tricuspid valve treatment market and the expanded indications for TAVR. However, the accelerated growth path of 2024-2025 business performance has unexpectedly entered a downward trajectory in our view," said Richard Newitter, an analyst from Truist, in the latest research report. Truist significantly lowered Edwards Lifesciences' target stock price within 12 months from $110 to $82.