Financial performance in 3Q17
In 3Q17, Edwards Lifesciences (EW) reported adjusted sales of ~$838 million, which is an underlying growth of ~13% on a year-over-year (or YoY) basis. This performance was driven by double-digit organic growth, partially offset by the seasonal slowdown in the quarter. It witnessed a robust rise in transcatheter aortic valve replacement (or TAVR) procedures n the quarter. The company is projecting revenues of ~$5 billion from the sale of its transcatheter therapies by 2021.
In 3Q17, Edwards Lifesciences also faced the negative impact of natural disasters in the United States and the Caribbean. Puerto Rico and the Dominican Republic are key manufacturing locations for the company’s critical care products. The hurricanes in Houston and Florida also led to patients and physicians delaying their TAVR procedures. Since then, a significant number of patients have been treated. These events affected the company’s top line by ~$2 million in 3Q17.
Edwards Lifesciences reported sales of $498 million in 3Q17 for its Transcatheter Heart Valve Therapy portfolio. That’s a ~20% underlying revenue growth on a YoY basis. It includes ~$17 million in sales attributed to the destocking of inventory in Germany.
Edwards Lifesciences accounts for ~1.3% of the Vanguard Mid-Cap Growth ETF’s (VOT) total portfolio holdings.
Analyst recommendations for Edwards Lifesciences and its peers
Of the 21 analysts covering Edwards Lifesciences in November 2017, seven have rated the stock a “strong buy,” nine have rated it a “buy,” four have rated it a “hold,” and one has rated it a “strong sell.”
Of the 23 analysts covering Medtronic (MDT) in November 2017, ~47.8% of them have rated the company a “buy.” About 80% of the ten analysts covering Abiomed (ABMD) have given it a “buy” recommendation, while ~65% of the 20 analysts tracking Abbott Laboratories (ABT) have rated it a “buy.”
In the next part of this series, we’ll take a look at revenue growth projections for Edwards Lifesciences for 2017.