NYSE$EW

Edwards Lifesciences Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Edwards Lifesciences reported better-than-expected results, driven by strong TAVR sales and progress in TMTT clinical trials.

Edwards Lifesciences reported a 4% increase in sales to $1.1 billion for the third quarter of 2020. Diluted earnings per share were $0.52, and adjusted earnings per share grew 9% to $0.51. The company is raising the bottom end of full-year 2020 adjusted earnings per share guidance to $1.85 to $1.95.

  • Sales of $1.1 billion grew 4%; similar underlying growth expected in the fourth quarter
  • TAVR global sales grew 6%
  • EPS was $0.52; adjusted EPS grew 9% to $0.51
  • 2020 adjusted EPS guidance increased to $1.85 to $1.95 from $1.75 to $1.95

Headline financials

Total Revenue

$1.14B

Previous: $1.09B+4.3%
EPS (adj)

$0.51

Previous: $0.47+8.5%
Gross Profit Margin

75.5%

Previous: 75.9%-0.5%
SG&A Expenses

307000000.0%

No prior period
R&D Expenses

196000000.0%

No prior period
Capital Expenditures

-$294M

Previous: -$183M-60.6%
Free Cash Flow

$31.4M

Previous: $91.8M-65.8%
Net Income

$325M

Previous: $275M+18.4%
Operating Income

$358M

Previous: $294M+21.6%
Gross Profit

$860M

Previous: $802M+7.3%
Cash & Equivalents

$1.02B

Previous: $1.19B-13.7%
Total Assets

$6.8B

Previous: $5.97B+14.0%
Stock-Based Comp

$23M

Previous: $19.8M+16.2%

Revenue & EPS history

Edwards Lifesciences · Revenue · Quarterly

$1.14B

Q3 2020+4.3%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Edwards Lifesciences · $960M total across 3 segments · Q3 2020

  • Transcatheter Aortic Valve Replacement
    $745M+6.4%
  • Surgical Structural Heart
    $203M-0.4%
  • Transcatheter Mitral & Tricuspid
    $12.1M+24.7%

Forward guidance

The company anticipates year-over-year underlying sales growth similar to the third quarter. The company is raising the bottom end of full-year 2020 adjusted earnings per share guidance to $1.85 to $1.95, versus previous guidance of $1.75 to $1.95. Looking ahead to 2021, the company anticipates a return to double-digit TAVR growth and aspires to double 2020 TMTT sales.

Tailwinds

  • Year-over-year underlying sales growth similar to the third quarter in Q4 2020
  • Raising the bottom end of full-year 2020 adjusted earnings per share guidance to $1.85 to $1.95
  • Anticipates a return to double-digit TAVR growth in 2021
  • Aspiration to double 2020 TMTT sales
  • Optimistic about continuing to deliver innovations to patients around the world

Headwinds

  • Ongoing COVID pandemic challenges
  • Negative impact from foreign currency fluctuations
  • Incremental costs associated with responding to COVID
  • Potential delay in initial pivotal clinical trial results by a couple of quarters
  • Impact of delayed elective procedures

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 Q3 2020

Historical avgQ3 2020

-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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