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Abiomed (ABMD) Q2 Earnings Lag Estimates, Revenues Beat

Zacks Equity Research

Abiomed Inc. ABMD reported second-quarter of fiscal 2017 earnings of 20 cents per share, which missed the Zacks Consensus Estimate by 4 cents and rose 3 cents from the year-ago quarter.

Revenues increased 35% year over year to almost $103 million, outpacing the Zacks Consensus Estimate of $102 million. The year-over-year upside was supported by the robust performance of the Impella heart pump product line.

Quarter Details

Globally, Impella revenues grew a strong 37% to $97.9 million in the quarter. U.S. Impella revenues improved 34% to $89.3 million while outside the U.S., revenues shot up 73% at cc to $8.6 million. Gross margin was 83.2% compared with 84.1% in the year-ago quarter.

In the U.S., Impella patient usage soared 35% driven by the growing adoption of protected PCI and emergent support. Germany accounted for the majority of the international revenues and grew 126% on a year-over-year basis.

During the reported quarter, the installed base for Impella 2.5 heart pumps in the U.S. grew by 33 hospitals, bringing the installed customer base to 1,099 sites. The installed customer base for Impella CP heart pumps grew by 62 new U.S. hospitals, bringing the total number of Impella CP sites to 923.

Overall operating income for the reported quarter came in at $14.5 million, or 14.1% operating margin, compared with $12.8 million, or 16.8% operating margin in the prior-year period.

Financial Condition

Cash and cash equivalents were $54.7 million at second-quarter end compared with $48.2 million at the end of fiscal 2016.
 

ABIOMED INC Price, Consensus and EPS Surprise

ABIOMED INC Price, Consensus and EPS Surprise | ABIOMED INC Quote

Guidance

Abiomed forecasts fiscal 2017 revenues in the range of $435 million to $445 million, up 32–35% from the fiscal 2016 level. Operating margin is forecast in the band of 18% to 20%.

Zacks Rank & Key Picks

Currently, Abiomed carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader medical sector are Intuitive Surgical Inc. ISRG, AngioDynamics Inc. ANGO and Glaukos Corp. GKOS. You can see the complete list of today’s Zacks #1 Rank stocks here.

Notably, Intuitive Surgical carries a Zacks Rank #2 while Glaukos and AngioDynamics sport a Zacks Rank #1 (Strong Buy).

Intuitive Surgical has a long-term expected earnings growth rate of approximately 11.35%. The stock represents an impressive one-year return of roughly 33.3%.

AngioDynamics has a long-term expected earnings growth rate of 15.00%. The company posted a solid one-year return of almost 26.1%.

Glaukos Corporation recorded a stellar one-year return of almost 77.8%. Notably, the company posted positive surprises in the past four quarters, the average being 110.93%.

 

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