Edwards(EW) - 2024 Q4 - Annual Results

Sales Performance - Q4 sales increased by 9% to $1.39 billion, exceeding expectations, with growth across all product groups [4]. - TAVR sales in Q4 reached$1.04 billion, growing 6% year-over-year, with full-year 2024 sales of $4.1 billion also up 6$105 million, contributing significantly to overall growth, with full-year sales of $352 million, a 78$1,385.8 million for Q4 2024, representing a 9.4% increase from $1,266.4 million in Q4 2023 [41]. - Total net sales for the twelve months ended December 31, 2024, were$5,439.5 million, representing an increase of 8.6% compared to $5,010.0 million in 2023 [42]. - Sales in the United States for Q4 2024 were$812.9 million, reflecting a growth rate of 9.2% from $744.3 million in Q4 2023 [43]. - Total sales for the year 2024 in Europe were$1,321.7 million, an increase of 12.0% from $1,180.2 million in 2023 [43]. Financial Metrics - Adjusted EPS for Q4 was$0.59, driven by strong top-line performance, with guidance for 2025 adjusted EPS between $2.40 and$2.50 [4][16]. - Gross profit margin for Q4 was 78.9%, with an expected adjusted gross profit margin of 78% to 79% for full-year 2025 [13]. - Non-GAAP adjusted net income for Q4 2024 was $349.4 million, with diluted EPS of$0.59, compared to $335.6 million and$0.55 in Q4 2023 [41]. - The effective tax rate for Q4 2024 was 13.3%, an increase from 11.1% in Q4 2023 [41]. - Gross profit margin for 2024 was 79.5%, slightly down from 80.5% in 2023 [42]. - Operating income for 2024 was $1,378.7 million, with an operating profit margin of 25.3$1,308.9 million and 26.1% in 2023 [42]. - Adjusted net income for 2024 was $1,455.2 million, resulting in an adjusted EPS of$2.43, up from $1,354.5 million and$2.22 in 2023 [42]. Future Outlook - The company anticipates 2025 constant currency sales growth of 8% to 10% [4]. - The company projects Q1 2025 total sales between $1.35 billion and$1.43 billion, with adjusted EPS of $0.58 to$0.64 [18]. - Edwards expects mid-year approval for asymptomatic TAVR indication in the U.S., which is anticipated to drive future growth [4][7]. - The company anticipates continued growth in its product lines, particularly in the Transcatheter Mitral and Tricuspid Therapies segment, which has shown strong performance [43]. Expenses and Charges - Research and development expenses rose 12% to $271 million in Q4, representing 19.6$8.9 million in Q1 2024, compared to $6.5 million in Q1 2023, with total litigation expenses for 2024 reaching$40.8 million [32]. - Restructuring expenses in Q3 2024 amounted to $32.9 million, primarily related to severance expenses due to a global workforce realignment [34]. - The company recorded a$30.0 million charge in Q3 2024 for a charitable contribution to the Edwards Lifesciences Foundation [34]. Cash Position - Cash and cash equivalents stood at approximately $3.0 billion as of December 31, 2024, with total debt around$600 million [17].