Edwards Lifesciences Corporation EW reported first-quarter 2025 adjusted earnings per share (EPS) of 64 cents, which surpassed the Zacks Consensus Estimate by 6.7%. The figure increased 16.4% from the year-ago quarter’s level. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).

The quarter’s one-time adjustments primarily include certain litigation expenses and amortization of intangible assets.

GAAP EPS from continuing operations was 62 cents compared with 54 cents in the first quarter of 2024.

Edwards’ Q1 Sales Details

In the first quarter, sales totaled $1.41 billion, up 6.2% year over year. The metric surpassed the Zacks Consensus Estimate by 0.7%.

Following the earnings announcement, EW stock rose 2.9% in aftermarket trading yesterday.

EW Q1 Sales by Segments

Transcatheter Aortic Valve Replacement (“TAVR”)

Global sales in the product group amounted to $1.05 billion, up 3.8% year over year or 5.4% in constant currency (CER). This compares with our model’s projection of $1.02 billion for the first quarter of 2025.

In the United States, the company’s leading SAPIEN 3 Ultra RESILIA platform continues to demonstrate strong performance. Sales growth in Europe was also supported by the continued expansion of the platform. In Japan, Edwards remains dedicated to addressing the significant undertreatment of aortic stenosis among the substantial elderly population.

Transcatheter Mitral and Tricuspid Therapies (“TMTT”)

In the first quarter, the segment’s sales totaled $115 million, up 58% from the prior-year figure on a reported basis (more than 60% at CER). This compares with our model’s projection of $120 million for the first quarter of 2025.

This performance was driven by increased adoption and balanced contribution from PASCAL and EVOQUE in the United States, Europe and globally.

Surgical Structural Heart

The segment delivered $251 million in sales in the first quarter, up 1% from the year-ago level on a reported basis and 3% at CER. This compares with our model’s projection of $251.4 million for the first quarter of 2025.

This growth was driven by the strong global adoption of Edwards Lifesciences’ premium RESILIA portfolio, specifically the INSPIRIS, MITRIS and KONECT devices.

Edwards’ Q1 Margin Performance

The gross profit was $1.11 billion, up 6.5% year over year. The gross margin expanded 22 basis points (bps) to 78.7% despite a 5.1% increase in cost of sales.

SG&A expenses rose 8.7% year over year to $465.7 million. R&D expenditures amounted to $254.6 million, down 0.8% year over year.

The operating income increased 9.2% year over year to $390.8 million. The operating margin expanded 75 bps to 27.7%.

EW’s Cash Position

Edwards Lifesciences exited the first quarter with cash and cash equivalents of $3.1 billion, almost similar to the figure at the end of 2024. Total debt also remained sequentially consistent at approximately $600 million.

Edwards’ 2025 & Q2 Guidance

The company reiterated its 2025 sales growth forecast of 8%-10% but raised the sales dollar guidance range by $100 million, reaching $5.7 to $6.1 billion. The revision was made to account for the recent movement in foreign exchange rates. The Zacks Consensus Estimate for the metric is pegged at $5.81 billion.

Meanwhile, Edwards continues to expect 2025 adjusted EPS to be in the range of $2.40-$2.50. The Zacks Consensus Estimate for the same is pegged at $2.45.

For the second quarter of 2025, the company projects total sales to be between $1.45 and $1.53 billion and adjusted EPS of 59-65 cents. The Zacks Consensus Estimate for the metrics currently stands at $1.46 billion and 61 cents, respectively.

Our Take

Edwards Lifesciences delivered both earnings and revenue beat in the first quarter of 2025.  TAVR growth came out better than the company’s expectations, with clinicians increasingly adopting the SAPIEN technology. Within TMTT, PASCAL’s distinct features are driving distinguished clinical outcomes, along with higher adoption at both new and existing sites around the world. In Surgical, Edwards made progress advancing important innovations globally in the quarter, such as the launch of MITRIS in China with positive surgeon feedback.

The company’s commitment to drive breakthrough innovations in pioneering and leading categories bodes well for the stock. Expansion of both margins in the quarter is highly promising as well. Given the strong start to the year, Edwards is confident of its 2025 outlook.

EW’s Zacks Rank and Key Picks

Edwards Lifesciences currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Veeva Systems VEEV and Masimo MASI.

AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 70.9%.

Veeva Systems, sporting a Zacks Rank #1 at present, posted fourth-quarter fiscal 2025 adjusted EPS of $1.75, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $720.9 million surpassed the Zacks Consensus Estimate by 3.2%.

VEEV has an estimated long-term earnings growth rate of 26.6% compared with the industry’s 20.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.9%.

Masimo, currently sporting a Zacks Rank #1, reported a fourth-quarter 2024 adjusted EPS of $1.80, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $600.7 million topped the Zacks Consensus Estimate by 0.8%.

MASI has an estimated earnings yield of 3.5% for fiscal 2025 compared with the industry’s 3.6% yield. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 14.4%.

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