Edwards Lifesciences Earnings: Progress in Penetrating Pew Patient Pools Anticipated in 2024

Narrow-moat Edwards Lifesciences finished 2023 with strong performance that slightly exceeded our expectations on the top line but met them on the bottom line. Our modeling adjustments were immaterial and we’re leaving our fair value estimate unchanged at $86. Quarterly revenue rose 13% in constant currency, with broad strength across all product categories. Consistent with recent quarters, transcatheter aortic valve replacement sales grew in the low-double digits. With data from the Early TAVR trial expected in the fall, we think favorable data among the asymptomatic severe aortic stenosis patients could shore up demand through our explicit forecast period, which could ease underlying market concerns that the pool of aortic stenosis patients has been exhausted.