Shares of Edwards Lifesciences, Corp. (EW) have declined 14.6% so far this year amid global macro uncertainty and the company’s weaker-than-expected fourth-quarter performance. EW provides products and technologies for structural heart disease and critical care monitoring.
Revenue increased 11.6% year-over-year to $1.33 billion but fell short of estimates by $24.3 million. Earnings per share at $0.51 too, lagged expectations by $0.04. Notably, in Q4, sales of Transcatheter Aortic Valve Replacement (TAVR) jumped 12% year-over-year.
The company estimates the global opportunity from TAVR will double to $10 billion by 2028. Additionally, EW also witnessed single-digit growth in surgical structural heart sales and critical care sales during this period.
Looking ahead, for 2022, EW anticipates sales to be in the range of $5.5 billion and $6 billion. Earnings per share are expected to land between $2.50 and $2.65.
With these developments in mind, let us take a look at the changes in EW’s key risk factors that investors should know.
According to the TipRanks Risk Factors tool, Edwards Lifesciences’ top risk category is Legal & Regulatory, contributing 6 of the total 21 risks identified for the stock, compared to a sector average of 11 risk factors under the same category.
In itss recent report, the company has added one key risk factor under the Legal & Regulatory risk category.
EW highlighted that natural disasters and extreme weather conditions stemming from climate change could impact the company’s future operations. Additionally, climate change concerns could lead to new legal or regulatory requirements that may mean higher compliance costs and an adverse impact on EW’s raw material sourcing, manufacturing, and product distribution.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have decreased holdings in Edwards Lifesciences by 615.8 thousand shares in the last quarter, indicating a negative hedge fund confidence signal in the stock based on activities of 14 hedge funds. Notably, Ray Dalio’s Bridgewater Associates has a holding worth $104.5 million in EW.
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