Edwards Lifesciences 2025 Q1 Earnings Net Income Growth of 1.5%

Edwards Lifesciences (EW) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company delivered solid results this quarter, meeting expectations with a 6.2% increase in revenue to $1.41 billion compared to 2024 Q1. Edwards Lifesciences raised guidance for 2025, projecting total company sales between $5.7 billion and $6.1 billion, and adjusted EPS guidance of $2.40 to $2.50, taking into account dilution from the JenaValve acquisition and tariff impacts. This reflects confidence in achieving an 8% to 10% sales growth target for the year, with Q2 sales expected between $1.45 billion and $1.53 billion.

Revenue

Edwards Lifesciences experienced a notable increase in revenue for Q1 2025, reaching $1.41 billion, which represents a 6.2% growth from the previous year. Transcatheter Heart Valve Therapy was a key contributor with $1.16 billion, including Transcatheter Aortic Valve Replacement at $1.05 billion. The Transcatheter Mitral and Tricuspid Therapies segment showed remarkable growth, contributing $115.20 million. Surgical Structural Heart added $250.90 million to the total.

Earnings/Net Income

Edwards Lifesciences saw an EPS rise to $0.61 in Q1 2025 from $0.58 in Q1 2024, indicating continued earnings growth. Net income improved to $356.40 million, slightly up from $351 million last year. The EPS increase reflects positive financial performance.

Price Action

The stock price of Edwards Lifesciences has edged up 0.69% during the latest trading day, has edged down 1.78% during the most recent full trading week, and has edged up 2.66% month-to-date.

Post-Earnings Price Action Review

Over the past five years, a strategy of purchasing Edwards Lifesciences shares following a quarterly revenue drop and holding for 30 days yielded a mere 0.93% return, significantly lagging behind the benchmark's impressive 83.12% return. This approach demonstrated a compound annual growth rate (CAGR) of just 0.19%, with a maximum drawdown of -13.83%, and a Sharpe ratio of 0.03. These statistics reveal that the strategy carried substantial risk with minimal reward compared to the overall market, highlighting the challenges and limited effectiveness of such an investment tactic.

CEO Commentary

“In Q1 2025, we achieved significant milestones through our structural heart-focused strategy and our commitment to innovation, resulting in a strong start to the year,” said Bernard Zovighian, CEO of Edwards Lifesciences. The company recorded $1.41 billion in revenue, driven by a 3.8% growth in TAVR sales and a remarkable 58% increase in TMTT sales. While we face challenges, including tariff impacts and the JenaValve acquisition, our confidence in our growth outlook remains strong as we build on these catalysts for distinguished growth in the years ahead.

Guidance

Edwards Lifesciences expects total company sales for 2025 to range between $5.7 billion and $6.1 billion, with a sales growth target of 8% to 10%. The adjusted EPS guidance is set at $2.40 to $2.50, taking into account the anticipated dilution from the JenaValve acquisition and tariff impacts. For Q2 2025, the company projects sales between $1.45 billion and $1.53 billion, with adjusted EPS expected to be in the range of $0.59 to $0.65.

Additional News

Edwards Lifesciences announced the CE Mark approval for its SAPIEN M3 mitral valve replacement system, marking a significant advancement in treating mitral regurgitation. This system is the world's first transcatheter valve replacement therapy utilizing a transfemoral approach for patients unsuitable for surgery or TEER therapy. Additionally, the company confirmed its participation in the BofA Securities 2025 Health Care Conference, where CEO Bernard Zovighian and CFO Scott Ullem will engage in a fireside chat. Investors can access a live webcast of the discussion, showcasing Edwards' commitment to transparent communication with stakeholders.