Edwards Lifesciences stock surged Wednesday — and retook both its key moving averages — after beating fourth-quarter forecasts for its heart-valve replacements.
The company is known for its transcatheter aortic heart-valve replacements, or TAVR. This is a means of replacing a faulty heart valve without resorting to open-heart surgery. During the fourth quarter, TAVR procedures generated $1.04 billion in sales, growing 6% year over year, or 5% in constant currency. That beat forecasts for $1.01 billion, according to FactSet.
TAVR is used in patients with high, moderate or low risk of complications from surgery. The company is working to expand its use to patients who don't have symptoms of their disease, William Blair analyst Margaret Kaczor Andrew said in a client note.
"While we acknowledge there is more to prove on TAVR growth accelerating toward the high end of 2025 guidance beyond the first quarter, cath lab workflow inefficiencies should be transient and do not take away from the long-term growth opportunities, particularly with asymptomatic indication expansion in the near term and moderate risk over the next two years," she said.
Edwards Lifesciences stock climbed 4.9% to 75.82. Shares closed narrowly above their 200-day line and solidly retook their 50-day moving average, according to MarketSurge.
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Across all products, Edwards earned an adjusted 59 cents per share on $1.39 billion in sales. On a strict, as-reported basis, sales rose more than 9%. Both metrics topped forecasts for 55 cents and $1.36 billion, respectively.
The biggest beat came from the mitral and tricuspid therapies business, where sales topped forecasts by $10 million, William Blair's Andrew said. These products replace other parts of the heart that can become diseased. Sales came in at $105 million, ahead of the FactSet-polled analysts' call for $94 million.
"The continued strength in TMTT is encouraging for the company's longer-term share position and market growth, with data and new product catalysts on the horizon," she said.
Andrew kept her outperform rating on Edwards Lifesciences stock.
The surgical segment generated $244 million, up 6% — or 5% excluding exchange rates — and narrowly topped the Street's call for $243 million.
For the year, the company guided to earnings of $2.40 to $2.50 per share and 8% to 10% sales growth, excluding the impact of exchange rates. Analysts forecast earnings of $2.44 per share and $5.84 billion in sales.
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