Two local medical device companies reported better-than-expected third-quarter results with mixed market reactions.
For Aliso Viejo-based Glaukos Corp., shares went up nearly 14% after the company reported record net sales of $133.5 million, up 38% year over year. The figure surpassed analysts’ expectations of $122 million.
Based on the results, Glaukos raised its guidance to $490 million to $495 million, compared to the previous range of $480 million to $486 million.
Chief Executive Thomas Burns cited the growing global adoption and utilization of iDose TR, the company’s recently launched implantable glaucoma therapy, as well as its other interventional glaucoma products.
“Teams continue to make great progress in the execution of our detailed launch plans for iDoseTR, and we are encouraged with the continuing growing momentum,” Burns said during the Oct. 29 earnings call.
Last month, Glaukos received FDA approval for Epioxa, an eye therapy made to stop the progression of a rare, sight-threatening disease called keratoconus. This makes the treatment the first and only FDA-approved topical drug therapy that doesn’t require removal of the outermost layer of the front of the eye, according to the company.
Glaukos expects Epioxa to be commercially available in 2026.
With the approval, Glaukos said it will discontinue its first-generation treatment, Photrexa, to prioritize Epioxa as the primary treatment option for keratoconus.
Edwards Lifesciences
Irvine-based Edwards Lifesciences Corp. saw third-quarter revenue grow 15% to $1.55 billion and adjusted earnings per share of 67 cents, surpassing the Zacks Consensus Estimate of $1.5 billion and 59 cents.
The company’s largest unit, Transcatheter Aortic Valve Replacement (TAVR), saw a 12% increase in sales to $1.2 billion.
TAVR growth was better than expected as “clinicians demonstrated a renewed focus on prioritizing treatment for patients suffering from aortic stenosis,” according to the company.
Meanwhile, the Transcatheter Mitral and Tricuspid Therapies (TMTT) business, the company’s fastest-growing unit, grew 59% to $145.2 million.
Edwards previously raised full-year sales growth guidance from 8% to 10% to the high end of 9% to 10%. Additionally, the company is increasing its full-year EPS guidance from the high end of $2.45 to $2.55 to $2.56 to $2.62.
“Our focus on structural heart has positioned us to execute our growth strategy with agility this year and also give us confidence in 2026 and beyond,” Chief Executive Bernard Zovighian told analysts on Oct. 30.
Despite the better-than-expected growth, shares fell 1.2% to $82.45 in the trading session following the earnings announcement.
Analyst firm Raymond James said it believes TAVR growth has recovered since the second quarter of 2024, when Edwards unexpectedly cut guidance for the unit, which sent shares tumbling 31% with its market value falling $16.5 billion in one day.
“We have been neutral on EW since early 2023 primarily on concerns around TAVR growth and the lack of growth drivers elsewhere in the business,” Jayson Bedford wrote in an Nov. 3 note to investors.
“While this dynamic was evident in 2024/1H25, we feel this is no longer the case.”
The firm upgraded Edwards from a Market Perform rating to an Outperform rating and issued a price target of $96.
CFO Leaving
In a separate announcement, Edwards revealed that CFO Scott Ullem plans to step down by midyear 2026.
He will continue in an advisory role following the transition, according to the company.
Ullem has been CFO of Edwards since 2014 and is credited with being responsible for the company’s information technology, information security and risk management, among others. He also led the creation of Edwards’ Social Impact Investment Fund to expand access to capital in underserved communities.
Prior to joining Edwards, Ullem served as CFO of Bemis Company Inc., an S&P 500 supplier of packaging and pressure-sensitive materials used in leading food, consumer and healthcare products, and was an investment banker for 17 years at Goldman Sachs and Bank of America.
