Piper Sandler has adjusted its price target for Edwards Lifesciences (EW, Financial) from $80 to $83, maintaining an Overweight rating on the stock. The firm is optimistic about future developments involving the Transcatheter Aortic Valve Replacement (TAVR) National Coverage Determination (NCD), though the precise timing of these changes remains uncertain. The recent FDA approval for treating asymptomatic aortic stenosis (AS) patients is seen as a prompt for revisiting the NCD documentation, which could ease reimbursement processes for this group.
Piper Sandler suggests that modifying the NCD to include asymptomatic AS patients could accelerate the adoption of TAVR procedures by simplifying payment protocols. Additionally, revisiting the NCD may allow the Centers for Medicare & Medicaid Services (CMS) to reconsider and potentially eliminate volume prerequisites for new TAVR initiatives. This would likely increase the number of centers offering the procedure, thus addressing capacity issues and potentially boosting procedure volumes.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 27 analysts, the average target price for Edwards Lifesciences Corp (EW, Financial) is $80.39 with a high estimate of $90.00 and a low estimate of $61.00. The average target implies an upside of 7.47% from the current price of $74.80. More detailed estimate data can be found on the Edwards Lifesciences Corp (EW) Forecast page.
Based on the consensus recommendation from 33 brokerage firms, Edwards Lifesciences Corp's (EW, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Edwards Lifesciences Corp (EW, Financial) in one year is $104.25, suggesting a upside of 39.37% from the current price of $74.8. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Edwards Lifesciences Corp (EW) Summary page.
EW Key Business Developments
Release Date: April 23, 2025
- Total Company Sales: $1.41 billion, an 8% increase in Q1 2025.
- TAVR Sales: $1.05 billion, a 5.4% increase over the prior year.
- TMTT Sales: $115 million, representing about 60% growth.
- Surgical Sales: $251 million, a 3% increase over the prior year.
- Adjusted EPS: $0.64 for the quarter.
- GAAP EPS: $0.62 for the quarter.
- Adjusted Gross Profit Margin: 78.7% in Q1 2025.
- SG&A Expenses: $466 million, 33% of sales.
- R&D Expenses: $255 million, 18% of sales.
- Adjusted Operating Profit Margin: 29.1% for the quarter.
- Cash and Cash Equivalents: Approximately $3 billion at the end of the quarter.
- Share Repurchase: $300 million repurchased in Q1 2025.
- Full Year Sales Guidance: Increased to $5.7 billion to $6.1 billion.
- Full Year EPS Guidance: $2.40 to $2.50.
- Q2 2025 Sales Guidance: $1.45 billion to $1.53 billion.
- Q2 2025 EPS Guidance: $0.59 to $0.65.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Edwards Lifesciences Corp (EW, Financial) reported an 8% increase in total company sales, reaching $1.41 billion in the first quarter of 2025.
- The company raised its 2025 TMTT sales guidance range to $530 million to $550 million, reflecting strong momentum in its transcatheter mitral and tricuspid therapies.
- Edwards Lifesciences Corp (EW) achieved significant milestones, including the approval of Sapien M3 in Europe, the world's first transcatheter mitral valve replacement system.
- The company maintained its full-year total company sales growth guidance of 8% to 10%, demonstrating confidence in its strategic plans.
- Edwards Lifesciences Corp (EW) has a strong balance sheet with approximately $3 billion in cash and cash equivalents, providing financial flexibility for future investments.
Negative Points
- The company faces potential impacts from tariffs and the JenaValve acquisition, which could affect future financial results.
- Edwards Lifesciences Corp (EW) experienced weaker procedure growth and competitive pressure in Japan, impacting sales performance in the region.
- The company anticipates pressure on its operating margin due to the weakening dollar and announced tariffs.
- There is uncertainty regarding the timing of the national coverage decision (NCD) for TAVR, which could impact the expansion of treatment centers.
- The launch of the Sapien M3 mitral valve replacement system in Europe is expected to be gradual, with a focus on creating a new category and achieving excellent patient outcomes.
