:max_bytes(150000):strip_icc()/INV_EdwardsLifesciencesLogo_GettyImages-1231903064-80ed8a8cd7cf4c86862d6bde5f2d2cb4.jpg "Edwards Lifesciences Stock Plummeted Today. Here’s Why")
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Key Takeaways
- Edwards Lifesciences cut sales-growth estimates for its biggest source of revenue, a heart valve replacement treatment.
- The heart disease and critical care monitoring company also missed expectations with its second-quarter earnings.
- Edwards Lifesciences stock lost almost a third of its value on Thursday, the worst performer in the S&P 500.
Edwards Lifesciences (EW) shares swooned Thursday, dropping after the company damped expectations for heart valve replacement sales growth on Wednesday.
The company said it expects full-year sales growth of 5% to 7% for its transcatheter aortic valve replacement (TAVR) treatment, down from the 8% to 10% forecast earlier. TAVR involves replacing a diseased heart valve using a catheter rather than through open-heart surgery.
Full-year sales of transcatheter mitral and tricuspid therapies (TMTT) are expected to come in on the higher end of Edwards’ previously issued range of $320 million to $340 million. The company reiterated its surgical sales growth projection of 6% to 8%.
Shares of Edwards plunged 31% to finish at $59.76 Thursday, leaving them down about 22% this year. The stock was the day’s worst performer in the S&P 500.
In the second quarter, Edwards posted earnings per share (EPS) of 61 cents, falling short of the 74 cents expected by analysts, according to Visible Alpha. Revenue was $1.39 billion, below expectations. TAVR revenue rose 5% year-over-year to $1 billion.