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Dec 31, 2020

Edwards Lifesciences Q4 2020 Earnings Report

Edwards Lifesciences reported fourth quarter results with sales increasing 1 percent and adjusted EPS growing 2 percent.

Key Takeaways

Edwards Lifesciences reported Q4 sales increased 1 percent to $1.2 billion, with underlying sales flat. The company's Q4 EPS was $0.49, and adjusted EPS grew 2 percent to $0.50. The company reiterated its 2021 guidance with sales growth expected in the mid-teens.

Q4 sales increased 1 percent to $1.2 billion; underlying sales flat

Q4 TAVR sales grew 2 percent; underlying sales flat

Q4 EPS was $0.49; adjusted EPS grew 2 percent to $0.50

December investor conference highlighted 2021 and long-term outlook

Total Revenue
$1.19B
Previous year: $1.17B
+1.5%
EPS
$0.5
Previous year: $0.49
+2.0%
Gross Profit Margin
75.1%
Previous year: 75.6%
-0.7%
SG&A Expenses
$339M
Previous year: $347M
-2.5%
R&D Expenses
$196M
Previous year: $194M
+0.9%
Gross Profit
$895M
Previous year: $888M
+0.8%
Cash and Equivalents
$1.18B
Previous year: $1.52B
-22.0%
Free Cash Flow
$287M
Previous year: $328M
-12.5%
Total Assets
$7.24B
Previous year: $6.49B
+11.5%

Edwards Lifesciences

Edwards Lifesciences

Edwards Lifesciences Revenue by Segment

Edwards Lifesciences Revenue by Geographic Location

Forward Guidance

Overall, full year 2021 sales guidance for Edwards remains $4.9 to $5.3 billion. Additionally, the company continues to expect full year 2021 adjusted earnings per share of $2.00 to $2.20. For the first quarter of 2021, the company projects total sales to be between $1.1 and $1.2 billion, and adjusted EPS of $0.43 to $0.50.

Positive Outlook

  • Full year 2021 sales guidance remains $4.9 to $5.3 billion.
  • Full year 2021 adjusted earnings per share expected to be $2.00 to $2.20.
  • First quarter of 2021 total sales projected to be between $1.1 and $1.2 billion.
  • First quarter 2021 adjusted EPS projected to be $0.43 to $0.50.
  • Continuing to invest in innovations to enhance patients’ lives.

Challenges Ahead

  • Expect a COVID impact on sales in the start of the year.
  • Uncertain impact and timeframe for recovery from the global challenge.
  • COVID had a more pronounced impact on the company’s U.S. sales, which declined mid-single digits
  • Surgical valve procedures were limited as hospitals experienced an influx of COVID patients
  • HemoSphere orders in the U.S. declined as hospitals limited their capital spending

Revenue & Expenses

Visualization of income flow from segment revenue to net income