Edwards Lifesciences Reports First Quarter Results
Recent Highlights
-
Q1 sales grew
6.2% to$1.41 billion 7.9% adjusted1 -
Q1 TAVR sales grew
3.8% ; constant currency1 sales grew5.4% , better than expected -
Q1 TMTT sales grew
58% to$115 million -
Q1 EPS of
$0.62 $0.64 - SAPIEN M3 CE Mark approval uniquely positions Edwards with a comprehensive TMTT portfolio
- NCD finalized for transcatheter tricuspid valve replacement, expanding patient access to EVOQUE
- Multiple TAVR studies presented at ACC confirm the need for urgent patient referral to Heart Team
- Data from Heart Valve Society meeting confirm long-term durability of Edwards’ RESILIA tissue
2025 Outlook
-
Raising TMTT sales guidance range to
$530 million $550 million - Reiterating TAVR and Surgical sales growth guidance
-
Reiterating 8
-10% Edwards sales growth guidance; increasing sales guidance to$5.7 $6.1 billion -
Reaffirming adjusted EPS of
$2.40 $2.50
“The many milestones achieved this quarter are the result of our structural heart-focused strategy and our decades of unwavering dedication to driving breakthrough innovation in pioneering and leading categories. Collectively, these milestones mark the significant progress we have made to unlock this large and growing opportunity to transform care for millions of structural heart patients around the world,” said Bernard Zovighian, CEO. “We are pleased with our strong start to the year and have confidence in our 2025 outlook. Looking to the future, we will build on the many impactful catalysts for our company, which position us for distinguished growth in the years ahead.”
Transcatheter Aortic Valve Replacement (TAVR)
In the first quarter, the company reported TAVR sales of
In the
Outside of the
Transcatheter Mitral and Tricuspid Therapies (TMTT)
Edwards’ unique and increasingly differentiated TMTT portfolio drove another quarter of impressive growth, with a meaningful contribution to overall company performance. First quarter sales were
PASCAL continues to demonstrate its value for patient care. Its differentiated features are driving distinguished clinical outcomes, and adoption is increasing at both new and existing sites around the world. The EVOQUE commercial launch is progressing well in the
With EVOQUE, SAPIEN M3 and PASCAL, Edwards is uniquely positioned to meet the broad and diverse needs of patients with tricuspid and mitral valve diseases.
Surgical
In Surgical, first quarter global sales of
Also in the first quarter, Edwards made progress advancing important innovations around the world. MITRIS launched in
Additional Financial Results
For the quarter, the gross profit margin was
Selling, general and administrative expenses in the first quarter were
Research and development expense of
Operating profit margin in the first quarter of
Cash and cash equivalents were approximately
Outlook
Edwards is raising its 2025 TMTT sales guidance range to
About Edwards Lifesciences
Edwards Lifesciences is the leading global structural heart innovation company, driven by a passion to improve patient lives. Through breakthrough technologies, world-class evidence and partnerships with clinicians and healthcare stakeholders, our employees are inspired by our patient-focused culture to deliver life-changing innovations to those who need them most. Discover more at www.edwards.com and follow us on LinkedIn, Facebook, Instagram and YouTube.
Conference Call and Webcast Information
The company will be hosting a conference call today at 2:00 p.m. PT to discuss its first quarter results. To participate in the conference call, dial (877) 704-2848 or (201) 389-0893. The call will also be available live and archived on the “Investor Relations” section of the Edwards website at ir.edwards.com or www.edwards.com.
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can sometimes be identified by the use of words such as “may,” “will,” “should,” “anticipate,” “believe,” “plan,” “project,” “estimate,” “forecast,” “potential,” “predict,” "early clinician feedback," “expect,” “intend,” “guidance,” “outlook,” “optimistic,” “aspire,” “confident” or other forms of these words or similar expressions and include, but are not limited to, statements made by Mr. Zovighian, second quarter and fiscal year 2025 financial guidance, our expected growth and accelerating growth due to, among other things, asymptomatic TAVR approval; durability of our RESILIA tissue; global adoption of, and differentiated features of, our devices; scaling of hospitals to accommodate procedure growth; expansion of evidence, approvals, clinical trial outcomes and impacts; patient outcomes; expectations for R&D and SG&A spending; effects of the JenaValve transaction; the highlights in the Guidance and Outlook section and the information in the Outlook section. No inferences or assumptions should be made from statements of past performance, efforts, or results which may not be indicative of future performance or results. Forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though they are inherently uncertain, difficult to predict, and may be outside of the company’s control. The company's forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement. If the company does update or correct one or more of these statements, investors and others should not conclude that the company will make additional updates or corrections.
Edwards’ guidance reflects the Company’s current estimates of the impact from tariffs that are in effect or have been announced as of the time of this press release and assumes such tariffs remain in place for the remainder of 2025. Any modification to such tariffs, or any new tariffs, could have a material impact on the Company’s future financial results and guidance.
Forward-looking statements involve risks and uncertainties that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements. Factors that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements include risk and uncertainties associated with the risks detailed in the company's filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2024, and its other filings with the SEC. These filings, along with important safety information about our products, may be found at edwards.com.
Edwards, Edwards Lifesciences, the stylized E logo, EARLY TAVR, EVOQUE, INSPIRIS, KONECT, MITRIS, PARTNER, PARTNER 3, PASCAL, RESILIA, SAPIEN, SAPIEN M3, SAPIEN 3, and SAPIEN 3 Ultra are trademarks of Edwards Lifesciences Corporation or its affiliates. All other trademarks are the property of their respective owners.
__________________ |
[1] |
The company uses the terms “adjusted” and "constant currency” when referring to non-GAAP sales from continuing operations and sales growth information, respectively, which excludes currency rate fluctuations and newly acquired products. Adjusted earnings per share from continuing operations is a non-GAAP item computed on a diluted basis and in this press release also excludes certain litigation expenses, amortization of intangible assets, and separation costs. See “Non-GAAP Financial Information” and reconciliation tables below. |
||||
[2] |
Reported sales and diluted EPS are from continuing operations. |
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EDWARDS LIFESCIENCES CORPORATION Unaudited Consolidated Statements of Operations (in millions, except per share data) |
|||||||
|
Three Months Ended March 31, |
||||||
|
2025 |
|
2024 |
||||
Net sales |
$ |
1,412.7 |
|
|
$ |
1,329.9 |
|
Cost of sales |
|
301.6 |
|
|
|
286.9 |
|
Gross profit |
|
1,111.1 |
|
|
|
1,043.0 |
|
Selling, general, and administrative expenses |
|
465.7 |
|
|
|
428.4 |
|
Research and development expenses |
|
254.6 |
|
|
|
256.7 |
|
Intellectual property agreement and certain litigation expenses |
|
10.9 |
|
|
|
8.9 |
|
Separation costs |
|
4.2 |
|
|
|
— |
|
Other operating income, net |
|
(19.1 |
) |
|
|
— |
|
Operating income, net |
|
394.8 |
|
|
|
349.0 |
|
Interest income, net |
|
(36.5 |
) |
|
|
(16.5 |
) |
Other non-operating income, net |
|
(2.6 |
) |
|
|
(5.7 |
) |
Income from continuing operations before provision for income taxes |
|
433.9 |
|
|
|
371.2 |
|
Provision for income taxes |
|
70.3 |
|
|
|
46.3 |
|
Net income from continuing operations |
$ |
363.6 |
|
|
$ |
324.9 |
|
(Loss) income from discontinued operations, net of tax |
|
(7.2 |
) |
|
|
26.1 |
|
Net income |
|
356.4 |
|
|
|
351.0 |
|
Net loss attributable to noncontrolling interest |
|
(1.6 |
) |
|
|
(0.9 |
) |
Net income attributable to Edwards Lifesciences Corporation |
$ |
358.0 |
|
|
$ |
351.9 |
|
|
|
|
|
||||
Earnings (loss) per share: |
|
|
|
||||
Basic: |
|
|
|
||||
Continuing operations |
$ |
0.62 |
|
|
$ |
0.54 |
|
Discontinued operations |
$ |
(0.01 |
) |
|
$ |
0.04 |
|
Basic earnings per share |
$ |
0.61 |
|
|
$ |
0.58 |
|
Diluted: |
|
|
|
||||
Continuing operations |
$ |
0.62 |
|
|
$ |
0.54 |
|
Discontinued operations |
$ |
(0.01 |
) |
|
$ |
0.04 |
|
Diluted earnings per share |
$ |
0.61 |
|
|
$ |
0.58 |
|
|
|
|
|
||||
Weighted-average common shares outstanding: |
|
|
|
||||
Basic |
|
586.9 |
|
|
|
601.6 |
|
Diluted |
|
587.8 |
|
|
|
604.1 |
|
|
|
|
|
||||
Operating statistics from continuing operations |
|
|
|
||||
As a percentage of net sales: |
|
|
|
||||
Gross profit |
|
78.7 |
% |
|
|
78.4 |
% |
Selling, general, and administrative expenses |
|
33.0 |
% |
|
|
32.2 |
% |
Research and development expenses |
|
18.0 |
% |
|
|
19.3 |
% |
Operating income |
|
27.9 |
% |
|
|
26.2 |
% |
Income before provision for income taxes |
|
30.7 |
% |
|
|
27.9 |
% |
Net income from continuing operations |
|
25.7 |
% |
|
|
24.4 |
% |
|
|
|
|
||||
Effective tax rate |
|
16.2 |
% |
|
|
12.5 |
% |
____________________ |
Note: Numbers may not calculate due to rounding.
EDWARDS LIFESCIENCES CORPORATION
Non-GAAP Financial Information
To supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principles (“GAAP”), the Company uses non-GAAP historical financial measures. Management makes adjustments to the GAAP measures for items (both charges and gains) that (a) do not reflect the core operational activities of the Company, (b) are commonly adjusted within the Company’s industry to enhance comparability of the Company’s financial results with those of its peer group, or (c) are inconsistent in amount or frequency between periods (albeit such items are monitored and controlled with equal diligence relative to core operations). The Company uses the terms "adjusted" and “constant currency" when referring to non-GAAP sales from continuing operations and sales growth information, respectively, which excludes currency exchange rate fluctuations and newly acquired products. The Company uses the term “adjusted” to also exclude certain litigation expenses, amortization of intangible assets, and separation costs.
Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results, and evaluating current performance. These non-GAAP financial measures are used in addition to, and in conjunction with, results presented in accordance with GAAP and reflect an additional way of viewing aspects of the Company's operations by investors that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting the Company's business and facilitate comparability to historical periods.
Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. A reconciliation of non-GAAP historical financial measures to the most comparable GAAP measure is provided in the tables below.
Fluctuations in currency exchange rates impact the comparative results and sales growth rates of the Company's underlying business. Management believes that excluding the impact of currency exchange rate fluctuations from its sales growth provides investors a more useful comparison to historical financial results. The impact of the fluctuations has been detailed in the "Reconciliation of Sales by Product Group and Region."
Guidance for sales and sales growth rates is provided on a "constant currency basis," and projections for diluted earnings per share, net income and growth, gross profit margin, taxes, and free cash flow are also provided on a non-GAAP basis, as adjusted, for the items identified above due to the inherent difficulty in forecasting such items without unreasonable efforts. The Company is not able to provide a reconciliation of the non-GAAP guidance to comparable GAAP measures due to the unknown effect, timing, and potential significance of special charges or gains, and management's inability to forecast charges associated with future transactions and initiatives.
Management considers free cash flow to be a liquidity measure which provides useful information to management and investors about the amount of cash generated by business operations, after deducting payments for capital expenditures, which can then be used for strategic opportunities or other business purposes including, among others, investing in the Company's business, making strategic acquisitions, strengthening the balance sheet, and repurchasing stock.
The items described below are adjustments to the GAAP financial results in the reconciliations that follow:
Certain Litigation Expenses - The Company incurred certain litigation expenses of
Amortization of Intangible Assets - The Company recorded amortization expense related to developed technology and patents in the amount of
Separation Costs - The Company recorded expenses of
Provision for Income Taxes - The income tax impacts of the expenses and gains discussed above are based upon the items' forecasted effect upon the Company's full year effective tax rate. Adjustments to forecasted items unrelated to the expenses and gains above, as well as impacts related to interim reporting, will have an effect on the income tax impact of these items in subsequent periods.
EDWARDS LIFESCIENCES CORPORATION Unaudited Reconciliation of GAAP to Non-GAAP Financial Information (in millions, except per share and percentage data) |
|||||||||||||||||||||
|
|
Three Months Ended March 31, 2025 |
|||||||||||||||||||
|
|
Net Sales |
|
Gross Profit Margin |
|
Operating Income, net |
|
Operating Profit Margin |
|
Net Income |
|
Diluted EPS |
|
Effective Tax Rate |
|||||||
GAAP - Continuing Operations |
|
$ |
1,412.7 |
|
78.7 |
% |
|
$ |
394.8 |
|
27.9 |
% |
|
$ |
363.6 |
|
$ |
0.62 |
|
16.2 |
% |
Net loss attributable to noncontrolling interests |
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
1.6 |
|
|
— |
|
— |
|
Total attributable to Edwards Lifesciences Corporation |
|
|
1,412.7 |
|
78.7 |
% |
|
|
394.8 |
|
27.9 |
% |
|
|
365.2 |
|
|
0.62 |
|
16.2 |
% |
Non-GAAP adjustments: (A) (B) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Certain litigation expenses |
|
|
— |
|
— |
|
|
|
10.9 |
|
0.8 |
|
|
|
8.8 |
|
|
0.01 |
|
0.1 |
|
Amortization of intangible assets |
|
|
— |
|
— |
|
|
|
1.4 |
|
0.1 |
|
|
|
1.2 |
|
|
— |
|
— |
|
Separation costs |
|
|
— |
|
— |
|
|
|
4.2 |
|
0.3 |
|
|
|
3.4 |
|
|
0.01 |
|
— |
|
Adjusted |
|
$ |
1,412.7 |
|
78.7 |
% |
|
$ |
411.3 |
|
29.1 |
% |
|
$ |
378.6 |
|
$ |
0.64 |
|
16.3 |
% |
|
|
Three Months Ended March 31, 2024 |
|||||||||||||||||||
|
|
Net Sales |
|
Gross Profit Margin |
|
Operating Income, net |
|
Operating Profit Margin |
|
Net Income |
|
Diluted EPS |
|
Effective Tax Rate |
|||||||
GAAP - Continuing Operations |
|
$ |
1,329.9 |
|
78.4 |
% |
|
$ |
349.0 |
|
26.2 |
% |
|
$ |
324.9 |
|
$ |
0.54 |
|
12.5 |
% |
Net loss attributable to noncontrolling interests |
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
0.9 |
|
|
— |
|
— |
|
Total attributable to Edwards Lifesciences Corporation |
|
|
1,329.9 |
|
78.4 |
% |
|
|
349.0 |
|
26.2 |
% |
|
|
325.8 |
|
|
0.54 |
|
12.5 |
% |
Non-GAAP adjustments: (A) (B) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Certain litigation expenses |
|
|
— |
|
— |
|
|
|
8.9 |
|
0.7 |
|
|
|
7.4 |
|
|
0.01 |
|
0.1 |
|
Amortization of intangible assets |
|
|
— |
|
0.1 |
|
|
|
0.5 |
|
— |
|
|
|
0.4 |
|
|
— |
|
— |
|
Adjusted |
|
$ |
1,329.9 |
|
78.5 |
% |
|
$ |
358.4 |
|
26.9 |
% |
|
$ |
333.6 |
|
$ |
0.55 |
|
12.6 |
% |
| ____________________ |
| (A) | See description of non-GAAP adjustments under "Non-GAAP Financial Information." |
|
(B) |
The tax effect on non-GAAP adjustments is calculated based upon the impact of the relevant tax jurisdictions’ statutory tax rates on the Company’s estimated annual effective tax rate, or discrete rate in the quarter, as applicable. The impact on the effective tax rate is reflected on each individual non-GAAP adjustment line item. |
RECONCILIATION OF SALES BY PRODUCT GROUP AND REGION
|
|
|
|
|
|
|
|
|
|
2025 Adjusted |
|
2024 Adjusted |
|
|
|||||||||||||||
Sales by Product Group (QTD) - Continuing Operations |
|
1Q 2025 |
|
1Q 2024 |
|
Change |
|
GAAP Growth Rate* |
|
Implantable Heart Failure Management |
|
1Q 2025 Adjusted Sales |
|
FX Impact |
|
1Q 2024 Adjusted Sales |
|
Constant Currency Growth Rate * |
|||||||||||
Transcatheter Aortic Valve Replacement |
|
$ |
1,046.6 |
|
$ |
1,007.9 |
|
$ |
38.7 |
|
3.8 |
% |
|
$ |
— |
|
|
$ |
1,046.6 |
|
$ |
(15.1 |
) |
|
$ |
992.8 |
|
5.4 |
% |
Transcatheter Mitral and Tricuspid Therapies |
|
|
115.2 |
|
|
72.9 |
|
|
42.3 |
|
58.1 |
% |
|
|
(0.4 |
) |
|
|
114.8 |
|
|
(1.8 |
) |
|
|
71.1 |
|
61.4 |
% |
Surgical Structural Heart |
|
|
250.9 |
|
|
249.1 |
|
|
1.8 |
|
0.7 |
% |
|
|
— |
|
|
|
250.9 |
|
|
(4.6 |
) |
|
|
244.5 |
|
2.6 |
% |
Total |
|
$ |
1,412.7 |
|
$ |
1,329.9 |
|
$ |
82.8 |
|
6.2 |
% |
|
$ |
(0.4 |
) |
|
$ |
1,412.3 |
|
$ |
(21.5 |
) |
|
$ |
1,308.4 |
|
7.9 |
% |
|
|
|
|
|
|
|
|
|
2025 Adjusted |
|
2024 Adjusted |
|
|
|||||||||||||||||
Sales by Region (QTD) - Continuing Operations |
|
1Q 2025 |
|
1Q 2024 |
|
Change |
|
GAAP Growth Rate* |
|
Implantable Heart Failure Management |
|
1Q 2025 Adjusted Sales |
|
FX Impact |
|
1Q 2024 Adjusted Sales |
|
Constant Currency Growth Rate * |
||||||||||||
|
|
$ |
838.9 |
|
$ |
782.1 |
|
$ |
56.8 |
|
|
7.3 |
% |
|
$ |
(0.4 |
) |
|
$ |
838.5 |
|
$ |
— |
|
|
$ |
782.1 |
|
7.2 |
% |
|
|
|
341.8 |
|
|
326.0 |
|
|
15.8 |
|
|
4.9 |
% |
|
|
— |
|
|
|
341.8 |
|
|
(11.9 |
) |
|
|
314.1 |
|
8.8 |
% |
|
|
|
81.8 |
|
|
86.0 |
|
|
(4.2 |
) |
|
(4.9 |
)% |
|
|
— |
|
|
|
81.8 |
|
|
(3.4 |
) |
|
|
82.6 |
|
(1.0 |
)% |
Rest of World |
|
|
150.2 |
|
|
135.8 |
|
|
14.4 |
|
|
10.6 |
% |
|
|
— |
|
|
|
150.2 |
|
|
(6.2 |
) |
|
|
129.6 |
|
15.9 |
% |
Outside of |
|
|
573.8 |
|
|
547.8 |
|
|
26.0 |
|
|
4.8 |
% |
|
|
— |
|
|
|
573.8 |
|
|
(21.5 |
) |
|
|
526.3 |
|
9.0 |
% |
Total |
|
$ |
1,412.7 |
|
$ |
1,329.9 |
|
$ |
82.8 |
|
|
6.2 |
% |
|
$ |
(0.4 |
) |
|
$ |
1,412.3 |
|
$ |
(21.5 |
) |
|
$ |
1,308.4 |
|
7.9 |
% |
| ____________________ |
* Numbers may not calculate due to rounding.
|
|
|
|
Three Months Ended March 31, |
|
|
2025 |
|
TAVR constant currency growth rate |
5.4 |
% |
Impact of billing days |
1.1 |
% |
TAVR billing days adjusted growth rate |
6.5 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250423533284/en/
Media Contact: Amy Meshulam, 949-250-4009
Investor Contact: Mark Wilterding, 949-250-6826
Source: Edwards Lifesciences Corporation
