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ABIOMED (ABMD) Earnings and Revenues Beat Estimates in Q3

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Zacks Equity Research
·4 min read
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ABIOMED, Inc. ABMD reported third-quarter fiscal 2021 earnings per share (EPS) of $1.17, which beat the Zacks Consensus Estimate by 1.7%. Also, the figure improved 5.4% year over year.

Revenues in Detail

Revenues of $231.7 million beat the Zacks Consensus Estimate by 2.9%. The metric also rose 4.6% from the prior-year quarter.

Q3 in Detail

U.S. Impella product revenues totaled $179.6 million, reflecting a rise of 1% year over year. However, per management, U.S. patient usage of the Impella heart pumps fell 2% in the quarter, mainly due to the coronavirus pandemic.

Outside the United States, Impella product revenues totaled $41.2 million, highlighting an increase of 17% year over year. Japan Impella product revenues and service improved 38% while European Impella product revenues grew 11% year over year.

Margin Trend

In the quarter under review, gross profit totaled $190.6 million, up 4.9% year over year. Gross margin in the quarter was 82.3% of net revenues, highlighting an expansion of 31 basis points (bps) year over year.

Total operating costs came in at $119.2 million, up 7.1% from the prior-year quarter.

Operating profit totaled $71.4 million, up 1.6% on a year-over-year basis. Operating margin was 30.8%, down 91 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 third quarter of fiscal 2021 with $181 million of cash and cash equivalents compared with $202.2 million at the end of the fiscal second quarter.

Cash flow from operating activities came in at $79.1 million in the fiscal third quarter.

The balance sheet was also debt free as of Dec 31, 2020.

Guidance

For the fiscal fourth quarter, global revenues are projected in the range of $225-$235 million, indicating 9-14% growth from the figure reported in fourth-quarter fiscal 2020.The Zacks Consensus Estimate for the same is pegged at $229.6 million.

Summing Up

ABIOMED exited the third quarter of 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. Also, the company saw a rise in U.S. Impella revenues.

The recent FDA 510(k) clearance for the company’s Breethe OXY-1 cardiopulmonary bypass support system is a positive. Notably, the company witnessed a deleveraged balance sheet in the quarter under review. During the fiscal third quarter, the Impella ECP heart pump completed the first phase of its FDA early feasibility study (EFS). The company also attained an FDA 510(k) clearance for its Expandable and Recoilable (XR) Sheath with regard to the Impella 2.5.

However, the company’s flagship Impella saw lower patient usage within the United States. Contraction in the operating margin is also worrying.

Zacks Rank

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

Key Picks

Some better-ranked stocks, which are expected to report earnings soon, include Hologic, Inc. HOLX, IDEXX Laboratories, Inc. IDXX and Align Technology, Inc. ALGN.

The Zacks Consensus Estimate for Hologic's first-quarter fiscal 2021 adjusted EPS is pegged at $2.14, indicating a whopping increase of 250.8% from the year-ago quarter’s reported number. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IDEXX currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for fourth-quarter 2020 adjusted EPS currently stands at $1.43, indicating growth of 37.5% from the prior-year quarter’s reported figure. The consensus estimate for fourth-quarter revenues is pegged at $677.5 million, reflecting a 12.2% increase from the year-ago period’s reported figure.

The Zacks Consensus Estimate for Align Technology’s fourth-quarter 2020 revenues is pegged at $781.9 million, implying a 20.3% increase from the year-earlier period’s reported figure. The same for EPS stands at $2.13, indicating growth of 39.2% from the year-ago quarter’s reported number. The company currently carries a Zacks Rank of 2.

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