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Mar 31, 2020
Edwards Lifesciences Q1 2020 Earnings Report
Edwards Lifesciences' first quarter results were reported with sales growth of nearly 14% despite being significantly impacted by COVID-19.
Key Takeaways
Edwards Lifesciences reported a 14% increase in sales to $1.1 billion for the first quarter of 2020. Diluted EPS was $1.47, and adjusted EPS grew 14% to $1.51. The company's sales were significantly impacted by COVID-19 in the last few weeks of the quarter, leading to a substantial reduction in 2020 sales and EPS guidance.
Sales grew nearly 14% to $1.1 billion.
TAVR sales grew 24%; underlying sales grew 25%.
EPS was $1.47; adjusted EPS grew 14% to $1.51.
Sales were significantly impacted by the effects of COVID-19 the last few weeks of Q1.
Edwards Lifesciences
Edwards Lifesciences
Edwards Lifesciences Revenue by Segment
Edwards Lifesciences Revenue by Geographic Location
Revenue by Segment
TAVR Revenue
CapyFin.comTMTT Revenue
CapyFin.comSurgical Revenue
CapyFin.comRevenue by Geographic Location
U.S. Revenue
CapyFin.comEurope Revenue
CapyFin.comJapan Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
Edwards Lifesciences expects the impact of COVID-19 on sales will be most severe in the second quarter, followed by a gradual recovery in the third quarter, and a fourth quarter that better resembles its original expectations for sales. 2020 sales are expected to be $4.0 to $4.5 billion, and adjusted earnings per share are expected to be $4.75 to $5.25. For the second quarter of 2020, total sales are projected to be between $700 and $900 million.
Positive Outlook
- Company assumes the impact of COVID-19 on sales will be most severe in the second quarter
- Company expects a gradual recovery in the third quarter
- Company expects a fourth quarter that better resembles its original expectations for sales
- Overall, 2020 sales guidance for Edwards is now expected to be $4.0 to $4.5 billion
- Company now expects full year 2020 adjusted earnings per share of $4.75 to $5.25
Challenges Ahead
- Difficult to accurately predict the progression of COVID-19
- Difficult to predict the extent of the disruption to hospital procedures
- Wide range of potential outcomes for sales and earnings for 2020
- Second quarter total sales are projected to be between $700 and $900 million
- This is a very difficult time for structural heart patients
Revenue & Expenses
Visualization of income flow from segment revenue to net income