Summary
Edwards Lifesciences Corporation (EW) reported strong first-quarter 2019 results, with total net sales increasing by 11.0% year-over-year to $993.0 million. This growth was primarily driven by a robust performance in the Transcatheter Aortic Valve Replacement (TAVR) segment, which saw an 8.4% increase in sales, largely attributed to the successful adoption of the Edwards SAPIEN 3 valve and the launch of the Ultra System. The Surgical Structural Heart segment also demonstrated significant strength, with a 19.6% increase in net sales, notably in the United States and Japan. Net income for the quarter rose to $249.7 million, or $1.18 per diluted share, compared to $206.6 million, or $0.96 per diluted share, in the prior year. This improved profitability was supported by a higher gross profit margin, partly due to favorable foreign currency movements and an improved product mix, along with a lower effective tax rate. The company also recently completed the acquisition of CAS Medical Systems, Inc. for approximately $100 million, aimed at enhancing its hemodynamic monitoring platform, signaling continued strategic investment in its growth areas.
Financial Highlights
51 data points| Revenue | $993.00M |
| Cost of Revenue | $231.80M |
| Gross Profit | $761.20M |
| R&D Expenses | $171.40M |
| SG&A Expenses | $280.30M |
| Operating Income | $274.20M |
| Net Income | $249.70M |
| EPS (Basic) | $0.40 |
| EPS (Diluted) | $0.39 |
| Shares Outstanding (Basic) | 623.70M |
| Shares Outstanding (Diluted) | 636.60M |
Key Highlights
- 1Total net sales grew 11.0% to $993.0 million in Q1 2019 compared to Q1 2018.
- 2Transcatheter Aortic Valve Replacement (TAVR) sales increased 8.4% to $597.7 million, driven by strong SAPIEN 3 valve adoption.
- 3Surgical Structural Heart sales surged 19.6% to $214.7 million, supported by the INSPIRIS RESILIA aortic valve.
- 4Net income increased by 20.8% to $249.7 million, with diluted EPS rising to $1.18 from $0.96.
- 5Gross profit margin improved due to favorable foreign currency rates, product mix, and prior year inventory adjustments.
- 6The company completed the acquisition of CAS Medical Systems, Inc. for approximately $100 million to bolster its critical care offerings.
- 7R&D expenses increased by 19.4% to $171.4 million, reflecting continued investment in transcatheter structural heart programs.