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Edwards Lifesciences
🇺🇸 NYSE:EW
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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.

Total Revenue
$1.13B
Previous year: $993M
+13.7%
EPS
$0.5
Previous year: $0.44
+13.6%
Gross Profit Margin
76.5%
Previous year: 76.7%
-0.3%
SG&A Expenses
$308M
R&D Expenses
$187M
Gross Profit
$864M
Previous year: $761M
+13.5%
Cash and Equivalents
$663M
Previous year: $709M
-6.5%
Free Cash Flow
$125M
Previous year: -$40.7M
-407.1%
Total Assets
$6.08B
Previous year: $5.47B
+11.1%

Edwards Lifesciences

Edwards Lifesciences

Edwards Lifesciences Revenue by Segment

Edwards Lifesciences Revenue by Geographic Location

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

Company Overview

Full financial data and analysis

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