Analysts’ revenue estimates
On October 24, 2017, Edwards Lifesciences (EW) is expected to announce its fiscal 3Q17 earnings results for the quarter ended April 28, 2017. According to Wall Street analysts’ estimates for 3Q17, the company is expected to have revenues of $8.3 billion, a YoY (year-over-year) sales growth of 12.5%. Its revenues were $7.4 billion in 3Q16. If we compare the 3Q17 estimates with its 2Q17 results, we see that the revenue estimates are lower than revenues of $8.4 billion in the previous quarter. According to seasonal trends, 3Q17 is the company’s lowest performance quarter.
A comparison of Edwards Lifesciences’ actual quarterly results and analysts’ estimates is shown in the above graph. In fiscal 2Q17, the company reported results that were higher than analysts’ expectations, driven by strong growth across the company’s business segments and strong procedure growth.
Major growth drivers
Edwards Lifesciences operates in three main areas of products and technologies: THV (Transcatheter Heart Valves), SHV (Surgical Heart Valve) therapy, and Critical Care. TAVR (transcatheter aortic valve replacement), which is part of THV, is the company’s major growth driver and continues to witness increasing demand around the world. The business is expected to contribute significantly to the company’s growth in the future. For more on this, be sure to read Transcatheter Heart Valve Therapy: Growth Driver for Edwards Lifesciences.
Medtronic (MDT), Boston Scientific (BSX), and Abbott Laboratories (ABT) are major competitors of Edwards Lifesciences in the TAVR space. These companies are expected to register revenues of ~$6.9 billion, $2.2 billion, and $6.7 billion, respectively, in their most recent quarters.
Edwards Lifesciences’ SHV therapy also continues to register strong sales, driven by the company’s market-leading product portfolio. For more on its performance, read Edwards Lifesciences and Surgical Heart Valve Segment Revenues.
Investors can gain exposure to Edwards Lifesciences by investing in the Vanguard Mid-Cap Growth ETF (VOT), which holds ~1.4% of its total holdings in EW stock.
Next, let’s take a look at Edwards Lifesciences’ 3Q17 earnings estimates.