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Jun 30, 2022

Edwards Lifesciences Q2 2022 Earnings Report

Edwards Lifesciences reported flat sales with 5% underlying growth and EPS of $0.65 for Q2 2022.

Key Takeaways

Edwards Lifesciences reported flat sales of $1.37 billion in the second quarter of 2022, but underlying sales grew by 5%. EPS was $0.65, and adjusted EPS was $0.63. The company lowered its second-half underlying sales growth outlook to approximately 10% but expects strong double-digit adjusted EPS growth in the second half.

Q2 sales of $1.37 billion were flat versus an elevated prior year; underlying sales grew 5 percent

Q2 TAVR sales grew 1 percent; underlying 5 percent

Q2 EPS was $0.65; adjusted EPS was $0.63

Lowered second half underlying sales growth outlook to approximately 10 percent

Total Revenue
$1.37B
Previous year: $1.38B
-0.1%
EPS
$0.63
Previous year: $0.64
-1.6%
Gross Profit Margin
80.4%
Previous year: 75.9%
+5.9%
SG&A Expenses
$409M
Previous year: $374M
+9.4%
R&D Expenses
$251M
Previous year: $225M
+11.5%
Gross Profit
$1.1B
Previous year: $1.04B
+6.0%
Cash and Equivalents
$1.2B
Previous year: $1.31B
-8.7%
Free Cash Flow
$289M
Previous year: $457M
-36.8%
Total Assets
$8.43B
Previous year: $7.66B
+10.0%

Edwards Lifesciences

Edwards Lifesciences

Edwards Lifesciences Revenue by Segment

Edwards Lifesciences Revenue by Geographic Location

Forward Guidance

The company expects approximately 10 percent underlying sales growth in the second half of the year. For total Edwards, the company now expects full year 2022 sales of $5.35 to $5.55 billion. The company now expects full year adjusted EPS guidance at the bottom end of its original guidance range of $2.50 to $2.65, representing double-digit growth over 2021. For the third quarter of 2022, the company projects total sales to be between $1.30 and $1.37 billion, and adjusted EPS of $0.58 to $0.66.

Positive Outlook

  • Expects approximately 10 percent underlying sales growth in the second half of the year.
  • Full year 2022 sales of $5.35 to $5.55 billion.
  • TAVR sales of $3.5 to $3.7 billion.
  • TMTT sales of $110 to $140 million.
  • Full year adjusted EPS guidance at the bottom end of its original guidance range of $2.50 to $2.65, representing double-digit growth over 2021.

Challenges Ahead

  • More pronounced FX headwinds.
  • Slower than expected improvement in COVID-related hospital staffing.
  • Projects total sales to be between $1.30 and $1.37 billion for Q3 2022.
  • Projects adjusted EPS of $0.58 to $0.66 for Q3 2022.
  • Lowered guidance to more accurately reflect challenges.

Revenue & Expenses

Visualization of income flow from segment revenue to net income