Edwards Lifesciences Faces Stock Plunge After Cut in Revenue Estimates
Investors in Edwards Lifesciences were left reeling after the company announced a reduction in sales-growth estimates for its TAVR (transcatheter aortic valve replacement) treatment, its largest revenue source.
The heart disease and critical care monitoring company also fell short of expectations with its second-quarter earnings, compounding the disappointment for shareholders.
This news sent Edwards Lifesciences stock plummeting by almost a third on Thursday, making it the worst performer in the S&P 500 index.
TAVR involves replacing a diseased heart valve using a catheter, rather than open-heart surgery. The company now expects full-year sales growth for TAVR to be between 5% and 7%, down from the previous estimate of 8% to 10%. However, sales for transcatheter mitral and tricuspid therapies (TMTT) are anticipated to fall within the higher end of the $320 million to $340 million range, while surgical sales growth projections remain unchanged at 6% to 8%.
Edwards Lifesciences shares closed at $59.76 on Thursday, marking a 31% decrease and contributing to a year-to-date decline of approximately 22%. The underperformance in the stock market was further exacerbated by the company’s second-quarter earnings report, which revealed earnings per share of 61 cents, falling short of analysts’ expectations of 74 cents. Additionally, revenue came in at $1.39 billion, lower than anticipated, although TAVR revenue increased by 5% year-over-year to $1 billion.
This turn of events serves as a cautionary tale for investors, highlighting the importance of closely monitoring company forecasts and developments to make informed investment decisions. Stay tuned to Extreme Investor Network for more updates and insights on the latest developments in the finance and investment world.