NYSE$EW

Edwards Lifesciences Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Edwards Lifesciences reported flat sales with 5% underlying growth and EPS of $0.65 for Q2 2022.

Edwards Lifesciences reported flat sales of $1.37 billion in the second quarter of 2022, but underlying sales grew by 5%. EPS was $0.65, and adjusted EPS was $0.63. The company lowered its second-half underlying sales growth outlook to approximately 10% but expects strong double-digit adjusted EPS growth in the second half.

  • Q2 sales of $1.37 billion were flat versus an elevated prior year; underlying sales grew 5 percent
  • Q2 TAVR sales grew 1 percent; underlying 5 percent
  • Q2 EPS was $0.65; adjusted EPS was $0.63
  • Lowered second half underlying sales growth outlook to approximately 10 percent

Headline financials

Total Revenue

$1.37B

Previous: $1.38B-0.2%
EPS (adj)

$0.63

Previous: $0.64-1.6%
Gross Profit Margin

80.4%

Previous: 75.9%+5.9%
SG&A Expenses

409000000.0%

Previous: 374000000.0%+9.4%
R&D Expenses

250800000.0%

Previous: 225000000.0%+11.5%
Capital Expenditures

-$116M

Previous: -$175M+33.9%
Free Cash Flow

$291M

Previous: $314M-7.5%
Net Income

$406M

Previous: $490M-17.0%
Operating Income

$460M

Previous: $542M-15.2%
Gross Profit

$1.1B

Previous: $1.04B+6.0%
Cash & Equivalents

$1.2B

Previous: $1.31B-8.7%
Total Assets

$8.43B

Previous: $7.66B+10.0%
Stock-Based Comp

$36.2M

Previous: $30.3M+19.5%

Revenue & EPS history

Edwards Lifesciences · Revenue · Quarterly

$1.37B

Q2 2022-0.2%vs Q2 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Edwards Lifesciences · $1.16B total across 3 segments · Q2 2022

  • Transcatheter Aortic Valve Replacement
    $907M+0.5%
  • Surgical Structural Heart
    $229M-3.6%
  • Transcatheter Mitral & Tricuspid
    $27.9M+26.8%

Forward guidance

The company expects approximately 10 percent underlying sales growth in the second half of the year. For total Edwards, the company now expects full year 2022 sales of $5.35 to $5.55 billion. The company now expects full year adjusted EPS guidance at the bottom end of its original guidance range of $2.50 to $2.65, representing double-digit growth over 2021. For the third quarter of 2022, the company projects total sales to be between $1.30 and $1.37 billion, and adjusted EPS of $0.58 to $0.66.

Tailwinds

  • Expects approximately 10 percent underlying sales growth in the second half of the year.
  • Full year 2022 sales of $5.35 to $5.55 billion.
  • TAVR sales of $3.5 to $3.7 billion.
  • TMTT sales of $110 to $140 million.
  • Full year adjusted EPS guidance at the bottom end of its original guidance range of $2.50 to $2.65, representing double-digit growth over 2021.

Headwinds

  • More pronounced FX headwinds.
  • Slower than expected improvement in COVID-related hospital staffing.
  • Projects total sales to be between $1.30 and $1.37 billion for Q3 2022.
  • Projects adjusted EPS of $0.58 to $0.66 for Q3 2022.
  • Lowered guidance to more accurately reflect challenges.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-1.3%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-1.5%

Avg return

30 days after

50%

35 / 70 earnings

Positive

+11.6%

Q1 2017

Best reaction

-31.4%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.1%+1.9%+7.7%
Q4 2025+3.0%-1.5%+6.2%
Q3 2025-0.8%-0.8%+3.8%
Q2 2025+0.1%+4.1%-0.8%
Q1 2025+6.6%+8.3%+6.4%
Q4 2024+6.9%+7.4%-2.3%
Q3 2024-1.7%-1.8%-0.2%
Q2 2024-31.4%-26.8%-18.6%
Q1 2024-2.5%-4.4%-0.7%
Q4 2023+0.6%-1.2%+9.0%
Q3 2023-10.9%-11.5%-3.7%
Q2 2023-9.8%-10.5%-16.9%
Q1 2023-1.2%-0.3%-6.6%
Q4 2022+7.1%+8.0%+5.5%
Q3 2022-18.3%-16.3%-12.0%
Q2 2022-4.8%-3.2%-13.6%
Q1 2022-8.3%-11.7%-17.7%
Q4 2021-6.9%-0.3%+3.2%
Q3 2021-0.4%-1.2%-6.4%
Q2 2021+2.0%+4.2%+5.8%
Q1 2021+7.5%+10.0%+4.8%
Q4 2020-3.7%-5.3%-4.0%
Q3 2020-6.0%-7.5%+0.1%
Q2 2020+0.3%-0.6%+1.0%
Q1 2020+3.2%-1.6%+1.1%
Q4 2019-5.5%-2.7%-12.0%
Q3 2019+3.0%+6.8%+8.4%
Q2 2019+10.8%+9.7%+11.7%
Q1 2019-0.3%-1.2%-4.7%
Q4 2018-0.0%+0.8%+2.9%
Q3 2018-6.0%-6.1%-0.7%
Q2 2018-8.5%-8.2%-8.6%
Q1 2018-5.6%-5.8%+0.3%
Q4 2017+4.1%+0.4%+6.3%
Q3 2017-9.4%-10.7%-4.6%
Q2 2017+0.4%-0.6%-3.5%
Q1 2017+11.6%+12.0%+16.5%
Q4 2016-6.8%-6.6%-3.9%
Q3 2016-19.5%-17.8%-25.8%
Q2 2016+7.4%+7.5%+7.7%
Q1 2016+0.9%
Q4 2015+5.7%
Q3 2015+0.7%
Q2 2015+0.7%
Q1 2015-1.8%
Q4 2014+7.5%
Q3 2014+10.9%
Q2 2014+9.4%
Q1 2014+0.7%
Q4 2013+1.0%
Q3 2013-9.3%
Q2 2013+2.3%
Q1 2013-22.8%
Q4 2012-7.1%
Q3 2012-0.3%
Q2 2012+4.5%
Q4 2011-1.6%
Q1 2012+11.6%
Q3 2011-5.9%
Q2 2011-3.5%
Q4 2010+0.5%
Q1 2010+0.5%
Q1 2011-2.1%
Q4 2008-1.7%
Q1 2009-1.7%
Q3 2010+1.3%
Q3 2009+1.3%
Q2 2009+1.3%
Q2 2010+1.3%
Q4 2009+1.3%

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