Summary
Edwards Lifesciences Corporation (EW) reported its third-quarter 2022 financial results, showcasing modest top-line growth amidst a challenging macroeconomic environment. Net sales increased slightly year-over-year, primarily driven by the performance of Transcatheter Aortic Valve Replacement (TAVR) products, especially the Edwards SAPIEN platform. The company experienced some headwinds from foreign currency fluctuations, particularly impacting sales outside the United States. Operationally, the company recorded a significant special charge related to the exit of its HARPOON surgical mitral repair system program. Despite this, profitability remained robust, though diluted earnings per share saw a slight decrease compared to the prior year, influenced by factors like changes in contingent consideration liabilities and increased R&D and SG&A expenses. The company maintained a strong liquidity position and continued its share repurchase program, demonstrating confidence in its financial health and future prospects.
Financial Highlights
50 data points| Revenue | $1.32B |
| Cost of Revenue | $253.80M |
| Gross Profit | $1.07B |
| R&D Expenses | $233.60M |
| SG&A Expenses | $377.30M |
| Operating Income | $402.40M |
| Net Income | $343.50M |
| EPS (Basic) | $0.55 |
| EPS (Diluted) | $0.55 |
| Shares Outstanding (Basic) | 619.80M |
| Shares Outstanding (Diluted) | 624.50M |
Key Highlights
- 1Net sales for the nine months ended September 30, 2022, increased by 3.4% to $4.0 billion, driven primarily by TAVR products.
- 2A special charge of $66.8 million was recorded in the third quarter of 2022 due to the decision to exit the HARPOON surgical mitral repair system program.
- 3Gross profit increased for both the three and nine-month periods, benefiting from sales growth and a favorable foreign currency hedging program.
- 4Diluted earnings per share for the nine months ended September 30, 2022, decreased to $1.79 from $1.85 in the prior year, impacted by contingent consideration changes and increased operating expenses.
- 5The company reported strong cash flow from operating activities of $935.4 million for the nine months ended September 30, 2022.
- 6A new Five-Year Credit Agreement for $750.0 million was established in July 2022, with no amounts outstanding as of September 30, 2022, indicating a strong liquidity position.
- 7The company continued its share repurchase program, buying back shares worth $844.9 million in the first nine months of 2022.