The 10-second takeaway
For the quarter ended June 30 (Q2), Edwards Lifesciences missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins increased across the board.
Edwards Lifesciences logged revenue of $482.0 million. The 19 analysts polled by S&P Capital IQ foresaw revenue of $489.6 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $431.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.67. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.65 per share. GAAP EPS of $0.57 for Q2 were 19% higher than the prior-year quarter's $0.48 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 73.1%, 270 basis points better than the prior-year quarter. Operating margin was 19.9%, 240 basis points better than the prior-year quarter. Net margin was 14.1%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $483.4 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $1.95 billion. The average EPS estimate is $2.66.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 142 members out of 197 rating the stock outperform, and 55 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Edwards Lifesciences a green thumbs-up, and 22 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Edwards Lifesciences is outperform, with an average price target of $97.11.
- Add Edwards Lifesciences to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.