Healthcare stock to watch: Edwards Lifesciences Corp (NYSE: EW)

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Edwards Lifesciences Corp (NYSE: EW) stock rose over 0.5% on 24th April, 2020 (as of 11:06 am GMT-4; Source: Google finance) after the company posted mixed results for the first quarter of FY 20. The company reported first-quarter profit of $310.6 million. The company projects that the impact of COVID-19 on sales will be most severe in the second quarter, after which there will be a gradual recovery in the third quarter, and a fourth quarter that better resembles its original expectations for sales.

But, globally, the average selling prices were stable. In the U.S., the TAVR sales rose by approximately 30% on a year-over-year basis in the first quarter. The U.S. TAVR sales growth through early March was consistent with the company’s strong fourth quarter growth rate, on the back of a step up in TAVR treatments as new patients entered the system independent of their surgical risk. Outside the U.S., in the first quarter, TAVR sales posted growth in the mid-teens year-over-year on an underlying basis. Further, the rollout of SAPIEN 3 Ultra was very positive in the first quarter, and clinician feedback and improved paravalvular leak performance remains outstanding. Ultra-accounted for over 30% of the U.S. and European TAVR volumes, exiting the first quarter.

EW in the first quarter of FY 20 has reported the adjusted earnings per share of $1.51, beating the analysts’ estimates for the adjusted earnings per share of $1.32, according to FactSet. The company had reported the adjusted revenue growth of 14 percent to $1.13 billion in the first quarter of FY 20, beating the analysts’ estimates for revenue of $1.08 billion. In Transcatheter Aortic Valve Replacement or TAVR, the first quarter global sales were up 25% to $742 million on an underlying basis. The global TAVR sales growth through early March was consistent with the strong fourth quarter global growth rate. This got dramatically affected in the last few weeks of the quarter as procedures fell due to the COVID-19 disruptions.

For the second quarter ending in July, Edwards Lifesciences expects revenue to be in the range of $700 million to $900 million.

EW now expects full-year sales to be in the range of $4 billion to $4.5 billion, after previously guiding for 2020 revenue of $4.6 billion to $5 billion. Earnings are now expected to be in the range of $4.75 to $5.25 a share, down from previous guidance of $6.15 to $6.40 a share.

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