Edwards Earnings: Impressive US Growth for Pascal Thanks to Steady Increase in New Centers

Narrow-moat Edwards Lifesciences kicked off the year with solid results, and the slight adjustments we’ve made to incorporate stronger growth in the transcatheter mitral and tricuspid business (TMTT) weren’t enough to shift our fair value estimate. While quarterly Sapien sales grew 8% in constant currency and adjusted for billing days, the TMTT business displayed unexpected strength by growing at 75%, albeit off a much smaller base. Nonetheless, this fast start in 2024 led management to raise its outlook for that product segment and indicate revenue for the year would be at the higher end of guidance. Our full-year estimates were already on the high side and remain bounded by management’s range.