On Tuesday, Edwards Lifesciences (NYSE:EW) reported fourth-quarter sales of $1.39 billion, beating the consensus of $1.36 billion. This represents a 9% year-over-year growth, supported by gains in all product groups.

Adjusted earnings per share came in at 59 cents, compared to analysts’ estimate of 55 cents.

Transcatheter Aortic Valve Replacement (TAVR) global sales grew 5.3% year-over-year to $1.04 billion in the fourth quarter.

Transcatheter Mitral and Tricuspid Therapies (TMTT) sales reached $105 million for the quarter, supported by the strong adoption of the PASCAL repair system and EVOQUE replacement system. Full-year TMTT sales of $352 million marked a 77% year-over-year increase.

The Surgical segment reported sales of $244 million, up 6% year-over-year (+5% on constant currency), driven by robust adoption of RESILIA-based products.

The gross profit margin was 78.9%, or 79.0% adjusted, compared to 80.2% in the same period last year. 

The fourth-quarter operating profit margin of 22.6%, or 25.6% adjusted, was in line with the company’s expectations.

“We exited the year in a strong position with three important growth drivers: TAVR, Mitral and Tricuspid, and two emerging opportunities in Structural Heart Failure and Aortic Regurgitation,” said Bernard Zovighian, Edwards’ CEO. “In 2025, we expect to build on many catalysts across our businesses that will contribute to growth,” said Bernard Zovighian, Edwards’ CEO.

Guidance: Edwards Lifesciences expects first quarter 2025 adjusted EPS of 58-64 cents versus the consensus of 59 cents and revenue of $1.35 billion—$1.43 billion versus the consensus of $1.412 billion.

Edwards’ guidance for 2025 adjusted operating margins is 27%-28%, with annual operating profit margin expansion thereafter.

William Blair analyst Margaret Kaczor acknowledges that while Edwards Lifesciences’ TAVR growth has potential, more evidence is needed to confirm it will reach the high end of 2025 guidance beyond Q1.

The analyst expects inefficiencies in catheter lab workflows to be temporary and believes long-term growth remains strong, particularly with the expansion of asymptomatic and moderate-risk indications over the next two years.

Meanwhile, continued strength in TMTT supports Edwards’ market position and growth, with upcoming data and new product launches as potential catalysts.

Kaczor sees Edwards as a company with high-single- to low-double-digit sales growth, driven by increasing adoption in underpenetrated markets, structural heart expansion, and patient activation efforts to improve treatment access.

William Blair reiterates the Outperform rating.

Price Action: EW stock is up 6.19% at $75.30 at last check Wednesday.

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