Robust TMTT Growth to Drive Edwards Lifesciences' Q2 Earnings
In the last reported quarter, the company's adjusted earnings per share of 64 cents beat the Zacks Consensus Estimate by 6.67%. Its earnings beat estimates in two of the trailing four quarters and matched on the other two occasions, the average surprise being 3.49%.
Q2 Estimates
The Zacks Consensus Estimate for revenues is pegged at $1.49 billion, suggesting an 8.9% decline from the year-ago reported figure.
The Zacks Consensus Estimate for net earnings of 62 cents per share indicates an 11.4% decline from the year-ago reported figure.
Estimate Revision Trend Ahead of Edwards' Q2 Earnings
Estimates for earnings have remained unchanged at 62 cents per share in the past 60 days.
Here's a brief overview of the company's progress ahead of this announcement.
Factors at Play
In the second quarter of 2025, the Transcatheter Aortic Valve Replacement ('TAVR') arm is likely to have delivered a strong performance in the United States, thanks to its market-leading SAPIEN 3 Ultra RESILIA platform. The continued expansion of SAPIEN3 Ultra RESILIA in Europe is expected to have supported the international performance. The platform has demonstrated remarkable patient outcomes, and the momentum is expected to have continued with more centers adopting it. Although we expect the company to have endured a weak procedure growth environment and competitive pressure in Japan, it remained dedicated to addressing significant undertreatment of aortic stenosis among the country's substantial elderly population.
On its previous earnings call, Edwards stated that it experienced a few instances of regional variability despite holding a strong competitive position and stable global pricing. The trend is likely to have continued in the second quarter, restricting the segment's full potential. Our model assumes TAVR sales to be $1.09 billion, implying a 5.2% year-over-year increase.
In the Transcatheter Mitral and Tricuspid Therapies ('TMTT') segment, strength in the portfolio of repair and replacement technologies for both Mitral and Tricuspid valves is likely to have supported Edwards' performance in second-quarter 2025. The PASCAL repair system is expected to have gained traction in the United States, Europe and globally, thanks to its differentiated features, leading to increased adoption of the technology at both existing and new centers.
Additionally, the commercial launch of the EVOQUE tricuspid replacement system might have continued to progress in the United States and Europe. As of March, it gained Medicare coverage under the finalized NCD for transcatheter tricuspid valve replacement, expanding access.
Edwards Lifesciences Corporation Price and EPS Surprise
Edwards Lifesciences Corporation price-eps-surprise | Edwards Lifesciences Corporation Quote
Edwards has raised its 2025 sales guidance for this segment to $530-$550 million (earlier $500 million), and we expect the company to have progressed meaningfully in the to-be-reported quarter. Our model estimates the TMTT business to report revenues of $130.4 million, implying a 57.1% improvement from the year-ago period's level.
Lastly, Edwards' Surgical Structural Heart might have delivered a strong performance in the to-be-reported quarter, driven by global adoption of its premium RESILIA portfolio, including MITRIS, INSPIRIS and KONECT. The company likely saw positive procedural growth globally for the many patients best treated surgically, including complex and concomitant procedures. Furthermore, MITRIS' launch in China with positive surgeon feedback might have contributed to the second-quarter top line.
Our model estimates the segment's revenues to be $263.1 million, suggesting a modest 6.2% rise from the year-ago quarter's reported figure.
Earnings Whispers for Edwards
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is not the case here, as you can see below:
Earnings ESP: Edwards has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Top MedTech Picks
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle:
CVS Health CVS has an Earnings ESP of +2.06% and a Zacks Rank #1 at present. The company is slated to release second-quarter 2025 results on July 31. You can see the complete list of today's Zacks #1 Rank stocks here.
CVS' earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.08%. The Zacks Consensus Estimate for second-quarter EPS implies a year-over-year decline of 19.7%.
Cencora COR has an Earnings ESP of +1.49% and a Zacks Rank #2 at present. The company is slated to release third-quarter fiscal 2025 results on Aug. 6.
The company's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.00%. The Zacks Consensus Estimate for fiscal third-quarter EPS implies a year-over-year increase of 13.2%.
Cardinal Health CAH has an Earnings ESP of +0.68% and a Zacks Rank #2 at present. The company is expected to release fiscal fourth-quarter 2025 results on Aug. 12.
CAH's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.30%. The Zacks Consensus Estimate for fiscal fourth-quarter EPS suggests a year-over-year improvement of 1.3%.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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Cardinal Health, Inc. (CAH): Free Stock Analysis Report
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