EW - Embedded Expectations Analysis - 2020 01 08
Edwards Lifesciences Corporation (EW:USA) trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 39.3x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management appears concerned about growth, CLASP study enrollment, and pricing pressuresSpecifically, management may lack confidence in their ability to sustain growth in TAVR therapy, PASCAL market penetration, and international sales, specifically in Europe. Moreover, they may be concerned about sales seasonality, margin headwinds, and the progress of their CLASP study enrollment. Furthermore, they may be exaggerating the growth opportunities for TAVR centers and their ability to increase the number of patients treated. Finally, they may lack confidence in their ability to execute a premium pricing strategy for PASCAL, meet mitral sales guidance, and combat TAVR pricing pressures
Edwards Lifesciences is engaged in patient-focused medical for structural heart disease, as well as critical care and surgical monitoring. The company is a manufacturer of heart valve systems and repair products used to replace or repair a patient's diseased or defective heart valve. The company is also engaged in hemodynamic and noninvasive brain and tissue oxygenation monitoring systems used to measure a patient's cardiovascular function in the hospital setting. The company's products and technologies are categorized into four main areas: Transcatheter Aortic Valve Replacement, Transcatheter Mitral and Tricuspid Therapies, Surgical Structural Heart, and Critical Care.
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