Edwards Lifesciences Corporation (NYSE:EW) is scheduled to report Q3 earnings results after markets close for trading on October 21, 2020.
The company is expected to report earnings of $0.44/share on revenue of $1.08 billion. The consensus earnings per share (EPS) of $0.44/share is based on a poll of 21 analysts and represents a decline in eps of −5.7% over the same quarter last year, when the company reported earnings of $0.47/share.
The revenue forecast of $1.08 billion based on a poll of 20 analysts implies a year-over-year (YoY) decline in revenue of −1.3%. Last year the company reported $1.094 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, missed 1 quarters, and met expectations 1 quarters.
What are your expectations from Edwards Lifesciences Corporation for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price did not react much to the update.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|July 23, 2020||$77.91||$78.13||0.3%||Increase|
|April 23, 2020||$72.17||$74.49||3.2%||Increase|
|January 30, 2020||$77.58||$73.29||−5.5%||Decline|
|October 23, 2019||$74.03||$76.29||3.0%||Increase|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.92, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.92 implies a 0.2% chance of earnings manipulation.
Fundamentals And Technical Analysis
Edwards Lifesciences Corporation is currently trading at $85.15/share, down −0.2% for the day. The company is trading at approximately 98.5% of its 52-week high of $87.79/share. The company’s stock price is up 9.0% since the last earnings report and up 0.2% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 58.65 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 71.77 and a forward P/E multiple of 46.00.
Edwards Lifesciences Corporation’s current share price also implies a price-to-book (P/B) multiple of 13.90. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$85.15|
|P/E Ratio (Fwd)||46.0x|
|Total Debt / Total Capital||1.3%|
|Levered Free Cash Flow||$936.8 million|
|EV / EBITDA||38.9x|
Edwards Lifesciences Corporation is a large-cap stock with a market capitalization of $53.053 billion and a total enterprise value of $52.574 billion. The company operates in the Healthcare sector and the Healthcare Equipment & Supplies industry.
Edwards Lifesciences Corporation provides products and technologies for structural heart disease, and critical care and surgical monitoring in the United States and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of heart valves; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases. The company also provides surgical heart valve therapy products, such as pericardial valves for aortic and mitral surgical valve replacement; aortic heart valves; annuloplasty rings; cardiac cannula devices; beating heart mitral valve repair system for the treatment of degenerative mitral valve diseases, as well as various procedure-enabling platforms to advance minimally invasive surgery. In addition, it offers critical care products, such as hemodynamic monitoring systems to measure a patient’s heart function and fluid status in surgical and intensive care settings; pulmonary artery catheters; arterial pressure monitoring products oximetry central venous catheters, as well as monitoring platforms that display a patient’s physiological information; and Acumen Hypotension Prediction Index, which alerts clinicians in advance of a patient developing low blood pressure. The company distributes its products through direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.