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Edwards Lifesciences (EW) Q4 Earnings Fall Shy of Estimates

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Edwards Lifesciences Corporation’s EW fourth-quarter 2021 adjusted earnings per share (EPS) of 51 cents lagged the Zacks Consensus Estimate by 7.3%. However, the figure improved 2% year over year.

Full-year adjusted EPS was $2.22, up 19.4% from the year-ago number. The metric lagged the Zacks Consensus Estimate by 1.8%.

GAAP EPS was 53 cents in the quarter compared with the year-ago EPS of 49 cents, reflecting an improvement of 8.2%.

Full-year GAAP EPS was $2.38, reflecting an 83.1% rise from the year-earlier $1.30.

Sales Details

Fourth-quarter net sales were $1.33 billion, up 11.6% year over year on a reported basis. On an underlying basis, growth was 13%. However, the metric lagged the Zacks Consensus Estimate by 0.9%.

Full-year revenues were $5.23 billion, reflecting a 19.3% increase from the year-ago period (up 18% on an underlying basis). However, revenues missed the Zacks Consensus Estimate by 0.4%.

Segmental Details

In the fourth quarter, global sales in the Transcatheter Aortic Valve Replacement (TAVR) product group amounted to $871.5 million, up 12.3% from the prior-year figure on a reported basis. On an underlying basis, growth was 13.2%. Average selling prices were stable worldwide. Outside the United States, total TAVR sales increased 20% on a year-over-year basis.

Transcatheter Mitral and Tricuspid Therapies sales totaled $25.3 million, up 92.6% from the prior-year figure on a reported basis. On an underlying basis, the improvement was 96.4%. The company continued to register strong momentum on increased adoption of the PASCAL platform in Europe.

Surgical Structural Heart sales in the quarter totaled $221.3 million, up 8.4% from the year-ago quarter on a reported basis and 9.3% on an underlying basis. Revenue growth was lifted by increased adoption of the premium RESILIA technologies worldwide.

Edwards Lifesciences Corporation Price, Consensus and EPS Surprise

Edwards Lifesciences Corporation Price, Consensus and EPS Surprise
Edwards Lifesciences Corporation Price, Consensus and EPS Surprise

Edwards Lifesciences Corporation price-consensus-eps-surprise-chart | Edwards Lifesciences Corporation Quote

Critical Care sales totaled $211.6 million in the fourth quarter, up 6.8% from the year-ago quarter on a reported basis and 8.1% on an underlying basis. The revenue uptick resulted from balanced contributions from all product lines, led by strong HemoSphere sales in the United States.

Margins

In the fourth quarter, gross profit was $1.02 billion, up 13.9%. Gross margin expanded 159 basis points (bps) to 76.7%.

The company-provided adjusted gross margin was 76.8%, reflecting a year-over-year expansion of 150 bps. This increase was primarily driven by favorable impact from foreign exchange.