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Edwards Lifesciences Corporation (EW), headquartered in Irvine, California, provides products and technologies for structural heart disease and critical care monitoring. Valued at $39.3 billion by market cap, the company offers products such as tissue replacement heart valves, heart valve repair, hemodynamic monitoring devices, angioscopy equipment, oxygenators, and pharmaceuticals. The leading global structural heart innovation company is expected to announce its fiscal third-quarter earnings for 2024 on Wednesday, Oct. 23.
Ahead of the event, analysts expect EW to report a profit of $0.68 per share on a diluted basis, up 15.3% from $0.59 per share in the year-ago quarter. The company beat or matched the consensus estimates in each of the last four quarters.
For the full year, analysts expect EW to report EPS of $2.71, up 8% from $2.51 in fiscal 2023. Its EPS is expected to rise 4.4% year over year to $2.83 in fiscal 2025.
EW stock has underperformed the S&P 500’s ($SPX) 34.8% gains over the past 52 weeks, with shares down 6.1% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV)18.9% gains over the same time frame.
EW has faced challenges in its performance due to slower growth in the transcatheter aortic valve replacement (TAVR) segment and margin pressure caused by currency fluctuations. Additionally, investor confidence has been affected by the sale of its Critical Care unit, as well as high warranty costs have impacted the results.
On Sep. 18, EW shares fell nearly 1% after Jeffries downgraded the stock to “Hold” from “Buy.”
On Jul. 24, EW reported its Q2 results, and its shares fell more than 31% in the following trading session. Its adjusted EPS of $0.70 met Wall Street expectations. The company’s revenue was $1.4 billion, missing Wall Street forecasts of $1.7 billion. For Q3, EW expects revenue to be between $1.56 billion and $1.64 billion.
Analysts’ consensus opinion on EW stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 26 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, 15 give a “Hold” rating, and one recommends a “Strong Sell.” EW’s average analyst price target is $76.26, indicating a potential upside of 16.7% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
