U.S. Markets closed
  • S&P 500

    3,669.01
    +6.56 (+0.18%)
     
  • Dow 30

    29,883.79
    +59.87 (+0.20%)
     
  • Nasdaq

    12,349.37
    -5.74 (-0.05%)
     
  • Russell 2000

    1,838.03
    +1.98 (+0.11%)
     
  • Crude Oil

    44.78
    -0.50 (-1.10%)
     
  • Gold

    1,833.00
    +2.80 (+0.15%)
     
  • Silver

    24.16
    +0.14 (+0.56%)
     
  • EUR/USD

    1.2118
    +0.0040 (+0.3272%)
     
  • 10-Yr Bond

    0.9480
    +0.0140 (+1.50%)
     
  • Vix

    21.17
    +0.40 (+1.93%)
     
  • GBP/USD

    1.3374
    -0.0049 (-0.3678%)
     
  • USD/JPY

    104.4580
    +0.1420 (+0.1361%)
     
  • BTC-USD

    19,164.64
    +170.74 (+0.90%)
     
  • CMC Crypto 200

    376.17
    +11.25 (+3.08%)
     
  • FTSE 100

    6,463.39
    +78.66 (+1.23%)
     
  • Nikkei 225

    26,800.98
    +13.44 (+0.05%)
     

ABIOMED (ABMD) Earnings and Revenues Beat Estimates in Q2

Zacks Equity Research
·4 min read

ABIOMED, Inc. ABMD reported second-quarter fiscal 2021 adjusted earnings per share (EPS) of $1.01, which beat the Zacks Consensus Estimate of 87 cents by 16.1%. However, the figure fell1.9% year over year.

Revenues in Detail

Revenues of $209.8 million beat the Zacks Consensus Estimate of $201.4 million by 4.2%. The metric also rose 2.4% from the prior-year quarter.

Q2 in Detail

U.S. Impella product revenues totaled $163.2 million, reflecting a fall of 1% year over year. Per management, U.S. patient usage of the Impella heart pumps fell 4% in the quarter, mainly due to the coronavirus pandemic.

Outside the United States, Impella product revenues totaled $36.5 million, highlighting an increase of 13% year over year. Japan Impella product revenues improved 5%, while European Impella product revenues grew 16% year over year.

Margin Trend

In the quarter under review, gross profit totaled $171 million, up 0.5% year over year. Gross margin in the quarter was 81.5% of net revenues, highlighting a contraction of 146 basis points (bps) year over year.

Total operating costs came in at $109.7 million, down 0.2% from the prior-year quarter.

Operating profit totaled $61.3 million, up 1.9% on a year-over-year basis. Operating margin was 29.2%, down 12 bps.

ABIOMED, Inc. Price, Consensus and EPS Surprise

 

ABIOMED, Inc. Price, Consensus and EPS Surprise
ABIOMED, Inc. Price, Consensus and EPS Surprise

ABIOMED, Inc. price-consensus-eps-surprise-chart | ABIOMED, Inc. Quote

Financial Condition

The company exited the second quarter of fiscal 2021 with $202.2 million of cash and cash equivalents compared with $214.8 million at the end of the fiscal first quarter. Cash flow from operating activities came in at $77.2 million in the fiscal second quarter.

The balance sheet was also debt free as of Sep 30, 2020.

Guidance

For the fiscal third quarter, revenues are projected in the range of $221 million to $230 million, indicating flat to 4% growth compared to third-quarter fiscal 2020.The Zacks Consensus Estimate for the same is pegged at $229.7 million.

Summing Up

ABIOMED exited the second quarter fiscal 2021 on a strong note. Impella revenues in Europe and Japan improved in the quarter under review. Product launches and regulatory approvals continue to buoy optimism. The recent FDA 510(k) clearance for the company’s Breethe OXY-1 cardiopulmonary bypass support system instills optimism. Also, the company’s balance sheet is debt-free.

However, the company’s flagship Impella saw decline in revenues within the United States. Contraction in both the margins is also worrying.

Zacks Rank

ABIOMED currently carries a Zacks Rank #3 (Hold).

Earnings of MedTech Majors at a Glance

Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. TMO, Align Technology, Inc. ALGN and AngioDynamics, Inc. ANGO, each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.

Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.

AngioDynamics reported first-quarter fiscal 2021 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot stocks we're targeting >>


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
 
AngioDynamics, Inc. (ANGO) : Free Stock Analysis Report
 
ABIOMED, Inc. (ABMD) : Free Stock Analysis Report
 
Align Technology, Inc. (ALGN) : Free Stock Analysis Report
 
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research