Edwards Lifesciences (NYSE:EW) has been red-hot in 2019, breaking record highs on a routine basis. The company's transcatheter heart valve therapies (THVTs) continue to gain momentum in the marketplace. 

But Edwards' sizzling streak was on the line when the company announced its third-quarter results after the market closed on Wednesday. But any uncertainty was only temporary. Edwards Lifesciences once again gave investors a lot to like. Here's what you'll want to know about the medical-device maker's Q3 results.

Physician with arm stretched out holding a 3D model of a heart in his hand

Image Source: Getty Images

By the numbers

Edwards Lifesciences announced Q3 revenue of $1.1 billion, a 21% increase from the $906.6 million reported in the same quarter of the previous year. The company's revenue was also higher than the average analysts' revenue estimate of $1.04 billion.

The company reported net income in the third quarter of $274.7 million, or $1.30 per diluted share, based on generally accepted accounting principles (GAAP). This was a significant improvement over Edwards Lifesciences' net income of $225.9 million, or $1.06 per diluted share, in the prior-year period.

Edwards Lifesciences posted adjusted net income of $1.41 per share, up from adjusted earnings per share (EPS) of $1.07 in the same period in 2018. This handily beat the average analysts' earnings estimate of $1.22 per share.

Behind the numbers

It's no surprise that transcatheter aortic valve replacement (TAVR) sales largely fueled Edwards' impressive revenue growth. TAVR sales jumped 25.7% year over year to $700 million. This growth was boosted by FDA approval of additional indications for the company's Sapien 3 and Sapien 3 Ultra devices.

Edwards' new Pascal transcatheter mitral system continued to build momentum in Europe. In the prior-year period, sales of the company's transcatheter mitral and tricuspid therapies (TMTT) totaled only $0.7 million. The company reported TMTT revenue of $9.7 million in the third quarter of 2019.

The company's other products also delivered solid growth. Edwards announced Q3 surgical structural heart sales of $204.1 million, up 10.5% year over year on the heels of increased adoption of the Inspiris Resilia aortic valve. Critical care sales rose 9.7% to $180.2 million, with growth across all product lines.

Edwards Lifesciences' strong revenue growth trickled down to its bottom line as well. It helped that the company's adjusted gross profit margin increased from 75.5% in the prior-year period to 75.9% in Q3 of 2019, boosted by a positive impact from currency fluctuations and a more profitable product mix.

Looking ahead

The company projects that revenue for full-year 2019 will be near the upper end of its previous guidance of revenue between $4 billion and $4.3 billion. The company also now anticipates full-year non-GAAP EPS will come in between $5.50 and $5.65, up from its previous guidance of between $5.20 and $5.40. 

CEO Michael Mussallem said that Edwards Lifesciences should "return to low double-digit global TAVR procedure growth next year, consistent with our estimate of a $7 billion opportunity in 2024." The company also still expects to begin a pivotal study of its Sapien M3 system in the U.S. later this year.

Growth stocks like Edwards Lifesciences are vulnerable to volatility and can fall quickly if there are any bumps in the road. But such bumps have been few and far between in 2019 so far. With TAVR gaining popularity with patients and physicians, Edwards' long-term prospects continue to look very good.