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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.
Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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