Edwards Lifesciences Corporation’s EW second-quarter 2018 adjusted earnings per share (EPS) came in at $1.24. Reported EPS was $1.32.Adjusted EPS beat the Zacks Consensus Estimate of $1.13 by 9.7%. Moreover, adjusted earnings improved 14.8% year over year, primarily driven by strong sales growth at the transcatheter heart valves business.Sales DetailsSecond-quarter sales improved 12.1% to $943.7 million but fell short of the Zacks Consensus Estimate of $964.7 million by 2.2%. Underlying sales increased 10% (including the impact of Germany stocking sales as customers in the nation chose to purchase additional inventory of the SAPIEN 3 valve in anticipation of a potential supply interruption resulting from recent intellectual property litigation).Revenues were primarily driven by considerable growth in transcatheter heart valve sales as well as strong performance by the Critical Care product line.Edwards Lifesciences Corporation Price, Consensus and EPS Surprise Edwards Lifesciences Corporation Price, Consensus and EPS Surprise | Edwards Lifesciences Corporation QuoteSegmental DetailsIn the second quarter, the company reported Transcatheter Heart Valve Therapy (THVT) sales of $584.9 million, reflecting 20% growth over the prior-year quarter. In the United States, THVT procedures grew in mid-teens year over year. Growth was driven by excellent clinical performance by SAPIEN 3 as well as continued strong therapy implementation across all regions.Surgical Heart Valve Therapy sales in the quarter totaled $190.3 million, down 8.1% from the prior-year quarter. This includes a sales return reserve for conversion to a consignment inventory model. However, Edwards Lifesciences continued to see solid uptake of the EDWARDS INTUITY Elite valve system along with strong demand for the latest INSPIRIS RESILIA aortic valve in the United States. Further, the company’s latest products drove underlying sales growth at a rate which surpassed the total procedure growth rate. Critical Care sales totaled $168.5 million in the reported quarter, representing an increase of 14.5% from second-quarter 2017. The upside can be attributed to solid growth across all product categories, largely led by HemoSphere advanced monitoring platform supported by new group purchasing organization contracts in the United States.MarginsIn the second quarter, gross margin contracted 100 basis points (bps) to 73.9% owing to adverse currency movements and continued operational investments. However, this was partially offset by a more profitable product mix led by growing sales of transcatheter valves.SG&A expenses rose 12.8% year over year to $274.9 million on account of sales and personnel-related expenses as well as strengthening of euro in comparison with the dollar. R&D expenditures increased 14.7% year over year to $154.1 million owing to continued investments in the transcatheter aortic valve and mitral valve program along with expenditures on clinical trials. Accordingly, adjusted operating margin in the quarter contracted 150 bps to 28.5%.Cash PositionEdwards Lifesciences exited the second quarter with cash and cash equivalents and short-term investments of $1.40 billion compared with $1.50 billion at the end of first quarter of 2018. Long-term debt in the reported quarter totaled $593.9 million versus $456 million at the end of the preceding quarter.Cash flow from operating activities were $140 million in the second quarter. Excluding capital spending of $53 million, free cash flow was $87 million. During the quarter, average diluted shares outstanding totaled 214 million.2018 Guidance RaisedEdwards Lifesciences raised its 2018 adjusted EPS expectations to $4.60-$4.75 from the previous $4.50-$4.70. The Zacks Consensus Estimate for full-year adjusted EPS was $4.63, within the company’s guided range.However, the company continues to maintain sales expectations at the high end of the previously projected range of $3.5-$3.9 billion. The Zacks Consensus Estimate for full-year revenues is pinned at $3.83 billion, within the guided range.For the third quarter of 2018, the company projects sales between $900 million and $950 million. The Zacks Consensus Estimate for revenues is pegged at $932.2 million, within the company’s estimated range. The company forecasts adjusted EPS between 93 cents and $1.03. Meanwhile, the Zacks Consensus Estimate for adjusted EPS is at $1.08, which is above the company‘s projected range.Our TakeEdwards Lifesciences exited the second quarter on a mixed note. Strong transcatheter valve sales in the domestic market as well as overseas is a major positive. The raised 2018 EPS guidance buoys optimism.Management expects to gain traction in the ever-expanding TAVR market based on increasing preference for transcatheter aortic valve replacement as well as compelling clinical evidence, leading to strong adoption of THV therapy. Further, management seems to be upbeat about Centers for Medicare and Medicaid Services (CMS) opening a National Coverage Analysis to reconsider the National Coverage Determination released in 2012 for transcatheter aortic valve replacement However, tough competition in the cardiac devices market and reimbursement issues continue to raise concern.Zacks Rank & Key PicksEdwards Lifesciences has a Zacks Rank #3 (Hold).A few better-ranked stocks in the broader medical sector which reported solid results this season are Intuitive Surgical ISRG, Abbott ABT and Align Technology, Inc. ALGN. While Intuitive Surgical and Align Technology sport a Zacks Rank #1 (Strong Buy), Abbott carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Intuitive Surgical reported second-quarter 2018 adjusted EPS of $2.76, which beat the Zacks Consensus Estimate of $2.48. Revenues totaled $909.3 million, also surpassing the consensus estimate of $870 million.Align Technology posted second-quarter 2018 adjusted EPS of $1.30, steering past the Zacks Consensus Estimate of $1.09. Revenues came in at $490.3 million, beating the consensus mark of $462.9 million.Abbott posted second-quarter 2018 adjusted EPS of 73 cents, which beat the Zacks Consensus Estimate of 71 cents. Revenues of $7.77 billion also edged past the consensus estimate of $7.73 billion.5 Medical Stocks to Buy NowZacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.Click here to see the 5 stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report Edwards Lifesciences Corporation (EW): Free Stock Analysis Report Align Technology, Inc. (ALGN): Free Stock Analysis Report To read this article on Zacks.com click here.