Wells Fargo believes this morning’s FDA approval of Medtronic's (MDT) self-expanding CoreValve Evolut R transcatheter aortic valve replacement system will keep the company competitive in the U.S. with Edwards Lifesciences' (EW) Sapien 3 valve. Wells expects both Evolut R and Sapien 3 to serve as potential catalysts in the U.S. transcatheter aortic valve market as they provide better outcomes and feature more advanced delivery systems. The firm keeps an Outperform rating on Medtronic.

Sees Q2 revenue $1.62B-$1.7B, consensus $1.64B.

Reports Q1 revenue $1.6B, consensus $1.57B. "Edwards is positioned to extend our leadership and deliver sustainable growth as a result of the strategic investments we have made across our transcatheter platforms to address the large and growing needs of patients impacted by aortic, mitral and tricuspid disease. We are pleased with our total company performance with first quarter sales growth of 10% as more patients were treated with our innovative therapies," said Bernard Zovighian, CEO. "This encouraging start to the year supports our increased 2024 sales guidance. Looking beyond 2024, we remain confident in Edwards' innovation-driven strategy, led by new indications, differentiated technologies and strategic adjacencies for addressing the significant unmet needs of structural heart disease patients."

Pre-earnings options volume in Edwards Lifesciences is 5.5x normal with puts leading calls 10:7. Implied volatility suggests the market is anticipating a move near 4.8%, or $4.27, after results are released. Median move over the past eight quarters is 6.3%.