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Jun 30, 2020
Edwards Lifesciences Q2 2020 Earnings Report
Edwards Lifesciences experienced a decline in sales and EPS due to the impact of COVID-19, but showed signs of recovery towards the end of the quarter.
Key Takeaways
Edwards Lifesciences reported a 15% decrease in sales to $925 million, with TAVR sales declining by 12%. EPS was negative $0.20, while adjusted EPS decreased 26% to $0.34. The company reiterated its 2020 sales guidance of $4.0 billion to $4.5 billion and increased its adjusted EPS guidance to $1.75 to $1.95.
Sales decreased by 15% to $925 million, with underlying sales down 14%.
TAVR sales declined by 12%, with underlying sales down 11%.
An intellectual property settlement resulted in a $368 million charge.
The company received FDA approval to initiate the EVOQUE tricuspid replacement pivotal trial.
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 expects sales in the third quarter to return to 2019 levels, and for sales to start growing again in the fourth quarter. Overall, 2020 sales guidance for Edwards continues to be $4.0 to $4.5 billion. The company now expects full-year 2020 adjusted earnings per share of $1.75 to $1.95.
Positive Outlook
- Progressive recovery is likely during the second half of the year.
- Sales in the third quarter are expected to return to 2019 levels.
- Sales are expected to start growing again in the fourth quarter.
- 2020 sales guidance remains at $4.0 to $4.5 billion.
- Full-year 2020 adjusted earnings per share are expected to be $1.75 to $1.95.
Challenges Ahead
- Unpredictability of COVID-19, including additional waves and isolated flare ups.
- Associated impact on the healthcare system.
- Preparing to deal with the ups and downs of this pandemic for the foreseeable future.
- Year-over-year comparisons will remain challenging due to strong sales growth in the second half of 2019.
- Hospitals continue to limit their capital spending as a result of COVID-19.
Revenue & Expenses
Visualization of income flow from segment revenue to net income