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Bull of the Day: Edwards Lifesciences (EW)

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Edwards Lifesciences Corp. (EW - Free Report) remains one of the top healthcare stocks on the Street. This Zacks Rank #1 (Strong Buy) is expected to grow earnings and revenue by the double digits in 2019.

Edwards Lifesciences makes devices that are focused on structural heart disease and critical care monitoring.

A Big Beat in the Third Quarter

On Oct 23, Edwards Lifesciences reported its third quarter results. It easily beat the Zacks Consensus by 19 cents, reporting $1.41 versus the consensus of $1.22.

It was the third earnings beat in a row.

Sales were up 21% to $1.1 billion with Transcatheter Aortic Valve Replacement (TAVR) sales up 26% year-over-year to $700 million, or up 27% on an underlying basis. Global average selling prices remained stable.

It is modeling a return to low double-digit global TAVR procedure growth in 2020.

It is also running trials on its portfolio of technologies for the Transcatheter Mitral and Tricuspid Therapies (TMTT).

Surgical Structural Heart sales jumped 11% to $204 million, or were up 3% on an underlying basis.

Critical Care sales gained 10% to $180 million, or were up 7% on an underlying basis. All product categories and geographies contributed in the quarter.

The FDA also approved SAPIEN 3 and SAPIEN 3 Ultra systems indication expansion.

Raised Full Year Guidance

Edwards was bullish on the rest of the year.

It now expects full year sales to be at the top of its previous range of $4 billion to $4.3 billion. Analysts expect sales to be up 15.3% in 2019.

It also raised full year 2019 EPS guidance to $5.50 to $5.65 from its prior guidance to $5.20 to $5.40.

11 analysts raised their estimates after the report to get inline with guidance. The Zacks Consensus Estimate jumped to $5.60 from $5.33 during that time.

That is earnings growth of 19.2% as it made just $4.70 in 2018.

Analysts are also bullish on 2020 as 10 estimates were revised higher as well.

The 2020 Zacks Consensus Estimate rose to $6.15 from $5.97 over the last month. That's further earnings growth of 9.9%.

Shares Soar in 2019

With business humming along, so are the shares as they've soared 63% year-to-date to all-time highs.



The company now has a market cap of $50 billion.

It's not a cheap stock. It is trading with a forward P/E of 43.

But for investors looking for a hot growth stock in the medical device industry, Edwards Lifesciences is one to keep on the short list.

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