Edwards Lifesciences (NYSE:EW) shares tumbled over 8% in after-hours trading after the company's latest earnings and guidance announcement disappointed investors and analysts alike.
After Wednesday's close, the company reported Q3 earnings of $0.59 per share, in line with the analyst estimate of $0.59. Revenue for the quarter was also in line, coming in at $1.48 billion, although that was a 12% increase from the same period last year.
"We are pleased with our strong third quarter performance, which included multiple new therapy approvals for the treatment of patients globally and important achievements on clinical milestones, as well as another quarter of double-digit sales growth," said Bernard Zovighian, Edwards Lifesciences CEO.
He added that the increasing demand for the company's advanced technologies, coupled with the execution of its innovation strategy, gives the firm confidence in the "tremendous opportunity to address unmet patient needs and drive differentiated long-term value."
Looking ahead, Edwards Lifesciences said it sees Q4 2023 revenue of $1.45B to $1.53B, below the consensus of $1.54B.
Following the release, analysts at TD Cowen, BofA, JPMorgan, Jefferies, Piper Sandler, Mizuho, Baird, Wells Fargo, RBC Capital, Canaccord, Truist, Stifel and Citi all lowered their price targets for EW shares.
Analysts at Citi lowered their firm's price target for the stock to $85 from $94, stating the company's Q4 guide will likely drive pressure post-earnings.
"With the 4Q23 guide and limited 2024 commentary, we anticipate investors’ focus to shift to the deliverability of 2024 consensus," added the analysts, who maintained a Buy rating on the stock but noted the firm's 90-day Negative Catalyst Watch, which it initiated with its 3Q23 EW preview.