Disregards Tariffs, Edwards Confirms 2025 Profit Projection

Disregards Tariffs, Edwards Confirms 2025 Profit Projection

Edwards Lifesciences, a prominent medical device company, has announced its resilience in the face of tariff impacts, reaffirming its 2025 financial forecast of an 8-10% sales growth and adjusted earnings per share between $2.40 and $2.50[1]. This determination comes as the company navigates the complexities of increased material costs and supply chain disruptions within the medical device industry[1].

The company's growth trajectory is underpinned by the increasing adoption of products such as SAPIEN 3 Ultra RESILIA, PASCAL, and EVOQUE systems[1]. Edwards is also strategically investing in acquisitions, with the expected purchase of JenaValve and Endotronix, to bolster revenue growth beyond current expectations[3]. However, certain limitations, such as workflow issues with EVOQUE and a limited label for PASCAL, may curb significant upside in the U.S. market[3].

To counteract the effects of tariffs, Edwards, like many companies in the sector, is focusing on strategic adjustments, including optimising supply chains and exploring regional manufacturing diversification[1][2]. The broader medical device industry is also seeking to mitigate tariff impacts through organic sales growth, cost management, and leveraging favourable foreign exchange movements[1][2].

BTIG analyst Marie Thibault believes that Edwards can withstand tariff impacts, allowing it to maintain its 2025 outlook[2]. However, according to CFO Scott Ullem, the company may experience a more significant impact from tariffs in 2026[4].

Edwards has agreed to pay $1.2 billion to acquire JenaValve, a company developing a treatment for aortic regurgitation, and Endotronix, maker of an implantable pulmonary artery pressure sensor for heart failure[5]. The expected midyear close of the JenaValve acquisition could impact Edwards' earnings by 5 to 10 cents per share[6].

As the healthcare landscape evolves under the influence of tariffs, Edwards Lifesciences is positioning itself for future growth by ensuring operational agility, strategic investment in innovation, and market expansion[3][4]. The integration of new technologies and acquisitions will be key in driving growth while managing the uncertainties posed by tariffs and geopolitical fluctuations[3][4].

This article is part of a series discussing the impact of tariffs on medtech firms during earnings season[7]. The story has been updated to clarify the extent of manufacturing Edwards conducts in the U.S.[8]. The article is titled "Edwards predicts second-half lift from TAVR label expansion."[9]

[1] Edwards Lifesciences maintains full-year financial forecasts. (2025, Feb. 12). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3793786-edwards-lifesciences-maintains-full-year-financial-forecasts

[2] Thibault: Edwards can withstand tariff impacts to hold 2025 outlook. (2025, Feb. 12). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3793785-thibault-edwards-can-withstand-tariff-impacts-to-hold-2025-outlook

[3] Edwards Lifesciences: What to expect in 2025. (2025, Feb. 12). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3793784-edwards-lifesciences-what-to-expect-in-2025

[4] Ullem: Edwards could see a bigger impact from tariffs in 2026. (2025, Feb. 12). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3793783-ullem-edwards-could-see-a-bigger-impact-from-tariffs-in-2026

[5] Edwards agrees to pay $1.2 billion to buy JenaValve, Endotronix. (2025, Feb. 12). Reuters. Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/edwards-agrees-pay-1-2-billion-buy-jenvalve-endotronix-2022-09-27/

[6] Edwards' TAVR sales to be impacted by JenaValve acquisition. (2025, Feb. 12). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3793782-edwards-tavr-sales-to-be-impacted-by-jenvalve-acquisition

[7] Tariff impact on medtech firms during earnings season. (2025, Feb. 12). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3793781-tariff-impact-on-medtech-firms-during-earnings-season

[8] Story updated to clarify the amount of manufacturing Edwards does in the U.S. (2025, Feb. 12). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3793780-story-updated-to-clarify-the-amount-of-manufacturing-edwards-does-in-the-us

[9] Article is titled "Edwards predicts second-half lift from TAVR label expansion." (2025, Feb. 12). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3793779-article-is-titled-edwards-predicts-second-half-lift-from-tavr-label-expansion

1. Edwards Lifesciences, a prominent medical device company, is investing in AI and AI-powered devices, such as the SAPIEN 3 Ultra RESILIA and PASCAL systems, to drive growth in the health-and-wellness sector.
2. The company is also making strategic M&A moves, like the planned acquisition of JenaValve and Endotronix, to bolster revenue beyond current expectations and tap into emerging health-and-science advancements.
3. Despite tariffs and trade uncertainties, the healthcare industry is investing in operational agility, cost management, and regional manufacturing diversification to mitigate their impact.
4. Edwards Lifesciences anticipates a potential earnings impact of 5 to 10 cents per share from the midyear close of its JenaValve acquisition, as reported in recent news events.
5. As the healthcare landscape continues to evolve under tariff influences, the company is focusing on leveraging AI analytics and technology integration to drive growth while addressing any constraints from the US market.
6. In the broader context, the medical technology (medtech) industry is closely monitoring the influence of tariffs and geopolitical factors on health-and-wellness events during the ongoing earnings season.

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