Like nearly every stock, Edwards Lifesciences (NYSE:EW) tanked during the coronavirus-driven stock market sell-off in late February and March. But its shares have bounced back more robustly than most stocks. 

The healthcare company announced its first-quarter results after the market closed on Thursday. Here are the highlights from Edwards' Q1 update.

Physician's hand holding a 3D image heart

Image source: Getty Images.

By the numbers

Edwards Lifesciences reported revenue in the first quarter of $1.1 billion, a 14% year-over-year increase. This result topped the average analyst estimate of $1.08 billion.

The company announced Q1 net income of $310.6 million, or $1.47 per share, based on generally accepted accounting principles (GAAP). In the prior-year period, Edwards posted GAAP net income of $249.7 million, or $1.18 per share.

Edwards' adjusted net income for the first quarter came in at $1.51 per share. This reflected a 14% jump from the prior-year period and easily beat the consensus Wall Street adjusted earnings estimate of $1.33 per share.

Behind the numbers

Although Edwards Lifesciences beat both top- and bottom-line estimates, the company said that its sales slipped significantly in the last few weeks of the first quarter because of the impact of the COVID-19 outbreak. This effect occurred across the board with the company's transcatheter aortic valve replacement (TAVR) devices, its transcatheter mitral and tricuspid therapies (TMTT), and its surgical structural heart and critical-care products.

Still, Edwards enjoyed solid growth on several fronts. TAVR sales in Q1 jumped 24% year over year to $742 million. The company reported TMTT sales of $10 million, with tremendous momentum for its PASCAL mitral valve system in Europe. 

The main bad news for Edwards (other than the impact of COVID-19) came from its surgical structural heart business. Sales for the unit dropped 10% year over year to $193 million. However, one key factor behind this decline was the increased adoption of TAVR devices.

One area of Edwards' business actually benefited from the COVID-19 pandemic. Sales of critical-care products rose 4% from the prior-year period. Intensive-care units (ICUs) in hospitals stocked up on the company's disposable pressure-monitoring devices for use in managing the care of COVID-19 patients. 

Looking ahead

With the writing on the wall at the end of the first quarter, it's not surprising that Edwards Lifesciences lowered its full-year 2020 guidance. The company now projects sales will be between $4 billion and $5 billion. The lower end of this range reflects a downward revision from the previous outlook of $4.6 billion. Edwards also expects full-year non-GAAP earnings per share (EPS) will be between $4.75 and $5.25, down from its previous guidance of $6.15 to $6.40. 

It's likely that the worst could be felt in the second quarter. Edwards anticipates Q2 sales of between $700 million and $900 million, well below its first-quarter result. However, the company hopes to have a gradual recovery in the third and fourth quarters.