NYSE$EW

Edwards Lifesciences Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong second-quarter double-digit sales growth and made meaningful progress on innovations to improve patient care globally.

Edwards Lifesciences reported an 11% increase in sales to $1.53 billion in Q2 2023, with all product groups achieving double-digit constant currency sales growth. Adjusted EPS was $0.66. The company has increased its full-year outlook due to strong first-half performance and improved healthcare staffing.

  • Q2 sales grew 11 percent to $1.53 billion; constant currency sales grew 12 percent.
  • All product groups achieved double digit constant currency sales growth in Q2.
  • Q2 TAVR sales grew 9 percent; constant currency sales grew 10 percent.
  • Q2 EPS of $0.50 (includes charge from previous IP agreement); adjusted EPS of $0.66.

Headline financials

Total Revenue

$1.53B

Previous: $1.37B+11.4%
EPS (adj)

$0.66

Previous: $0.63+4.8%
Gross Profit Margin

77.7%

Previous: 80.4%-3.4%
SG&A Expenses

469000000.0%

Previous: 409000000.0%+14.7%
R&D Expenses

270000000.0%

Previous: 250800000.0%+7.7%
Capital Expenditures

-$109M

Previous: -$116M+5.5%
Free Cash Flow

$198M

Previous: $291M-32.0%
Net Income

$307M

Previous: $406M-24.4%
Operating Income

$327M

Previous: $460M-28.8%
Gross Profit

$1.19B

Previous: $1.1B+7.5%
Cash & Equivalents

$1.04B

Previous: $1.2B-13.0%
Total Assets

$9B

Previous: $8.43B+6.9%
Stock-Based Comp

$37.4M

Previous: $36.2M+3.3%

Revenue & EPS history

Edwards Lifesciences · Revenue · Quarterly

$1.53B

Q2 2023+11.4%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Edwards Lifesciences · $1.3B total across 3 segments · Q2 2023

  • Transcatheter Aortic Valve Replacement
    $992M+9.3%
  • Surgical Structural Heart
    $256M+12.2%
  • Transcatheter Mitral & Tricuspid
    $47.6M+70.6%

Forward guidance

Edwards Lifesciences expects full year 2023 sales to be in the $5.9 to $6.1 billion range and adjusted earnings per share to be $2.50 to $2.60. For the third quarter of 2023, the company projects total sales to be between $1.44 and $1.52 billion, and adjusted EPS of $0.55 to $0.61.

Tailwinds

  • Full year 2023 sales to be in the $5.9 to $6.1 billion range.
  • Full-year total company and TAVR sales growth to be in the 10 to 13 percent range on a constant currency basis.
  • TAVR sales of $3.85 to $4.0 billion.
  • TMTT sales of $180 to $200 million.
  • Surgical Structural Heart sales of $960 million to $1.02 billion.

Headwinds

  • For the third quarter of 2023, the company projects total sales to be between $1.44 and $1.52 billion.
  • Adjusted EPS of $0.55 to $0.61 for the third quarter of 2023.
  • The company's forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement.
  • Forward-looking statements involve risks and uncertainties that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements.
  • Factors that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements include risk and uncertainties associated with the COVID pandemic, clinical trial or commercial results or new product approvals and therapy adoption.

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 2023

Historical avgQ2 2023

-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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