NEW YORK - Edwards Lifesciences Corporation (NYSE: NYSE:EW), a leader in structural heart innovations with a market capitalization of $41.4 billion, outlined its strategy for robust growth and updated its technology pipeline during its annual investor conference today. According to InvestingPro analysis, the company currently trades at an attractive valuation relative to its near-term earnings growth potential. The company, now exclusively focused on structural heart disease, anticipates a promising future with growth drivers in its Transcatheter Aortic Valve Replacement (TAVR) and Transcatheter Mitral and Tricuspid Therapies (TMTT) segments.
The company reaffirmed its 2024 guidance, projecting constant currency sales growth of 8% to 10%. For 2025, Edwards expects to maintain this momentum with similar sales growth rates, alongside an adjusted earnings per share (EPS) of $2.40 to $2.50. The company's financial health receives a "GREAT" rating from InvestingPro, supported by an impressive 76.6% gross profit margin and strong balance sheet metrics. For deeper insights into Edwards' financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. In particular, TAVR sales are estimated to be between $4.1 billion and $4.4 billion, representing a 5% to 7% growth, while TMTT is forecasted to reach $500 million to $530 million, surging by 50% to 60%.
Edwards' CEO, Bernard Zovighian, emphasized the company's commitment to advancing structural heart therapies and the significant opportunities to expand TAVR. The company's vision for TMTT involves a growth portfolio of differentiated technologies. Edwards continues to support the global adoption of its premium RESILIA technologies in the surgical space.
The company also highlighted its investment in Structural Heart Failure and Aortic Regurgitation (AR) therapies, anticipating these areas to contribute to its growth in the coming years. Edwards aims for an average annual total company sales growth of 10% and double-digit EPS growth beyond 2026.
The investor conference included discussions on the SAPIEN platform's leadership in TAVR and the upcoming milestones such as the adoption of the SAPIEN 3 Ultra RESILIA system and the EARLY TAVR pivotal trial. In the TMTT space, the company is advancing with the commercialization of EVOQUE and the PASCAL Precision system, along with the anticipated CE Mark for the SAPIEN M3 system.
Edwards also plans to continue expanding its surgical innovations and has recently received U.S. approval for the Cordella system, an implantable heart failure management device.
This information is based on a press release statement from Edwards Lifesciences. The company's forward-looking statements involve risks and uncertainties, and actual results may differ materially from the projections. The company does not undertake any obligation to update these statements following the date of the press release. For a complete analysis of Edwards Lifesciences' financial position, valuation metrics, and growth potential, InvestingPro subscribers have access to over 30 additional financial metrics and exclusive ProTips that provide deeper insights into the company's performance and prospects.
In other recent news, Edwards Lifesciences reported a 10% increase in third-quarter sales, reaching $1.35 billion, largely driven by their Transcatheter Aortic Valve Replacement (TAVR) and Transcatheter Mitral and Tricuspid Therapies (TMTT) sales. Their EVOQUE transcatheter tricuspid valve replacement system showed promising results in the TRISCEND II trial. Piper Sandler reaffirmed a Neutral rating on shares of Edwards Lifesciences, anticipating the company's fiscal year 2024 expectations and initial guidance for fiscal year 2025 during its annual investor day. Goldman Sachs maintained a Buy rating on Edwards Lifesciences with a price target of $80, while BofA Securities maintained its Neutral rating and a $75.00 price target. Citi removed Edwards Lifesciences from its 90-Day Upside Catalyst Watch List following the presentation of the EARLY TAVR and TRISCEND II data. These are recent developments in Edwards Lifesciences' business operations and market performance.
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