Bearish: Analysts Just Cut Their Edwards Lifesciences Corporation (NYSE:EW) Revenue and EPS estimates

The latest analyst coverage could presage a bad day for Edwards Lifesciences Corporation (NYSE:EW), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After the downgrade, the consensus from Edwards Lifesciences' 17 analysts is for revenues of US$5.8b in 2024, which would reflect a noticeable 6.5% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to fall 10% to US$2.29 in the same period. Before this latest update, the analysts had been forecasting revenues of US$6.5b and earnings per share (EPS) of US$2.59 in 2024. Indeed, we can see that the analysts are a lot more bearish about Edwards Lifesciences' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Edwards Lifesciences

Despite the cuts to forecast earnings, there was no real change to the US$79.82 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 13% by the end of 2024. This indicates a significant reduction from annual growth of 8.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Edwards Lifesciences is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Edwards Lifesciences' revenues are expected to grow slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Edwards Lifesciences.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Edwards Lifesciences going out to 2026, and you can see them free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.