Edwards Lifesciences Corporation (NYSE:EW) Q4 2022 Earnings Call Transcript

Michael Mussallem: That’s right. I mean if we just look at what’s happened here in the recent past, whether it’s the U.S. or Europe or Japan, our three biggest regions, they’ve been lower than what they should be based on the struggles that they’ve had with the aftermath of COVID, and we expect that to improve throughout 2023.

Richard Newitter: Okay. I guess — but it’s not like you have better visibility into the two factors. The COVID surge impacts in your challenge areas in Germany and Japan, better visibility there versus hospital staffing. It feels like you’re saying you expect all of them to move more or less together?

Michael Mussallem: Yes. I would say we have similar visibility on all of them. We’re very close to our customers, very close to our centers. and we feel like we know what’s happening on a center-by-center basis. And we just feel that the environment has and will continue to improve.

Richard Newitter: Okay. And just following up to BJ’s question. are half of your centers still doing double-digit growth in the U.S. I know it’s variant, but do you still see that level of growth from at least a cohort or half of your centers?

Scott Ullem: Yes. I don’t know if I could pin it down exactly to a percentage. But certainly, we see a large portion or a large section of our centers that are still doing double-digit growth. And again, I think it’s not so much COVID, but it’s the COVID restrictions that happen. And I think the parts of the country where those restrictions have been release sooner. I think we see those centers doing better. But we expect the rest to come along. I mean if you look broadly, those restrictions are easing really across the globe, and I think that’s what is one of the things that helps us in 2023.

Michael Mussallem: Yes. And Larry, you might add that you saw some weeks during Q4 where there was some significant volume, though and made us feel good about the fact that there must be some capacity out there, right?

Larry Wood: Yes. We had some of the biggest weeks that we’ve had in our history in Q4. So a week doesn’t make a year, but the fact that they were able to do it for several weeks indicates that staffing is getting better and capacity is coming back into the system, and it’s one of the things that gives us confidence in our guidance for 2023.

Operator: And that concludes our question-and-answer session for today. I’ll turn the floor back to management for closing remarks. Thank you.

Michael Mussallem: Okay. Well, thanks all for your continued interest in Edwards. Scott, Mark and I welcome any additional questions by telephone. And with that, thanks for participating.

Operator: Thank you. That concludes today’s conference. All parties may disconnect. Have a great day.