Edwards forecast fourth-quarter sales below expectations on soft demand for heart devices

Edwards Lifesciences

24/10/2024 21:21

Oct 24 (Reuters) - Edwards Lifesciences  EW.N  on
Thursday forecast fourth-quarter sales below Wall Street
estimates, hurt by softer demand and fierce competition for its
artificial heart valves.
        Investor expectations for medical device makers have
risen in recent quarters as demand for surgical procedures,
especially among older adults, remains high.
  
        The company's third-quarter sales of $1.35 billion also
fell short of analysts' average estimates of $1.52 billion,
according to data compiled by LSEG.
  
    Edwards' lead product is the transcatheter aortic valve
replacement (TAVR) device, which enables minimally invasive
heart surgeries. 
    Sales from the TAVR unit increased 6.5% to $1.02 billion in
the quarter ended Sept. 30 in line with analysts' estimates.
    In July, the company acquired heart device makers JenaValve
Technology and Endotronix in deals valued at $1.2 billion as it
looks to cement its position as a pure-play structural heart
company. 
    However, its TAVR devices face fierce competition from
Abbott  ABT.N , Boston Scientific  BSX.N , and Medtronic
 MDT.N .
    These results contrast with larger peer Boston Scientific,
raised its annual profit forecast and exceeded Wall Street's
estimates for third-quarter profit on Wednesday, driven by
robust demand for its heart devices.
    California-based Edwards reaffirmed its full-year sales
growth guidance of 8% to 10%.
    The medical device maker anticipates fourth-quarter sales to
be between $1.33 to $1.39 billion, lower than analysts' average
estimates of $1.44 billion. It expects profit of 53 to 57 cents
per share.
    On an adjusted basis, Edwards earned 67 cents per share for
the quarter ended Sept. 30, beating analysts' expectations by 3
cents. 
   

 (Reporting by Sneha S K; Editing by Tasim Zahid)
 ((Sneha.SK@thomsonreuters.com;))