/Edwards%20Lifesciences%20Corp%20Irvine%2C%20Ca%20campus-by%20Steve%20Cukrov%20via%20Shutterstock.jpg)
Edwards Lifesciences Corporation (EW), headquartered in Irvine, California, is a company that specializes in innovative products and technologies for structural heart disease and critical care monitoring. Valued at $43.4 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 fourth-quarter earnings for 2024 on Tuesday, Feb. 4.
Ahead of the event, analysts expect EW to report a profit of $0.55 per share on a diluted basis, down 14.1% from $0.64 per share in the year-ago quarter. The company beat or matched Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect EW to report EPS of $2.56, up 2% from $2.51 in fiscal 2023. However, its EPS is expected to decline 4.3% year over year to $2.45 in fiscal 2025.
EW stock has underperformed the S&P 500’s ($SPX) 24.2% gains over the past 52 weeks, with shares down 2% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) marginal gains over the same time frame.
EW’s underperformance can be attributed to its decision to divest its critical care unit.
On Oct. 24, EW shares closed down marginally after reporting its Q3 results. Its adjusted EPS of $0.67, met Wall Street expectations. The company’s revenue stood at $1.4 billion, up 8.9% year over year. For Q4, EW expects its revenue to be between $1.3 billion and $1.4 billion.
Analysts’ consensus opinion on EW stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 28 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and 17 give a “Hold.” EW's average analyst price target is $78.32, indicating a potential upside of 5.6% from the current levels.
