U.S. Markets open in 1 hr 29 mins

ABIOMED (ABMD) Q4 Earnings Meet Estimates, Sales Rise in Japan

Zacks Equity Research

ABIOMED, Inc. ABMD reported fourth-quarter fiscal 2019 earnings per share (EPS) of $1.07, which were in line with the Zacks Consensus Estimate. The bottom line rose 33.8% from the figure registered in the year-ago quarter.

 

The Zacks Rank #3 (Hold) company’s revenues came in at $207.1 million, missing the Zacks Consensus Estimate of $217.7 million. However, the metric improved 18.7% from the prior-year quarter.

 

FY19 at a Glance

 

Fiscal 2019 EPS came in at $5.61, beating the Zacks Consensus Estimate of $5.05. The figure skyrocketed 129% year over year.

 

Revenues totaled $769.4 million, falling short of the Zacks Consensus Estimate of $779.7 million. The metric shot up 29.6% from fiscal 2018.

ABIOMED, Inc. Price, Consensus and EPS Surprise

 

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

Q4 in Detail

 

Worldwide Impella heart pump revenues in the reported quarter totaled $199.5 million, reflecting an increase of 19% year over year.

 

U.S. Impella product revenues totaled $169.7 million, an increase of 16% year over year. Per management, U.S. patient usage of the Impella heart pumps rose 14% in the quarter.

 

Outside the United States, Impella product revenues totaled $29.8 million, highlighting an increase of 35% year over year. Japan revenues were $5.4 million in the quarter, up a substantial 212% year over year.

 

Margin Trend

 

In the quarter under review, gross margin was 83.2% of net revenues, up 50 basis points (bps) year over year. Research & Development (R&D) costs grossed $25.5 million, up 20.1% year over year.

 

Operating income totaled $65.4 million, up 37.4% on a year-over-year basis. Operating margin was 31.6%, up 430 bps.

 

Financial Condition

 

ABIOMED’s balance sheet remains debt free. The company ended the fiscal fourth quarter with $513.4 million of cash and marketable securities.

 

Guidance

 

For fiscal 2020, ABIOMED expects total revenues within $900-$945 million, suggesting an increase of 17-23% from fiscal 2019. The Zacks Consensus Estimate for the same stands at $983.6 million, much above the projected range.

 

Summing Up

 

ABIOMED wrapped up the fourth quarter of fiscal 2019 on a mixed note. The company continues to gain from its flagship Impella, which saw a strong quarter. Impella’s patient success stories and increasing global adoptions are added positives. Revenues from Japan also skyrocketed in the quarter. Considerable expansion in the operating margin buoys optimism. Meanwhile, surging R&D expenses show increasing focus on innovation. In fact, the company continues to invest in training and education. The recent CE Mark of the Impella Connect is also encouraging. The company’s balance sheet is debt free.

 

However, competition in the MedTech industry is intense.

 

Earnings of MedTech Majors at a Glance

 

Some better-ranked stocks which posted solid results this earning season are Stryker Corporation SYK, Abbott Laboratories ABT and CONMED Corporation CNMD, each carrying a Zacks Rank of 2 (Buy). You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

 

Stryker delivered first-quarter 2019 adjusted EPS of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the Zacks Consensus Estimate.

 

Abbott reported first-quarter 2019 adjusted EPS of 63 cents, beating the Zacks Consensus Estimate by 3.3%. First-quarter worldwide sales came in at $7.54 billion, above the Zacks Consensus Estimate of $7.47 billion.

 

CONMED posted first-quarter 2019 adjusted EPS of 57 cents, which beat the Zacks Consensus Estimate of 54 cents. Revenues were $218.4 million, surpassing the consensus estimate of $213 million.

 

Zacks' Top 10 Stocks for 2019

 

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year? 

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>


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
 
ABIOMED, Inc. (ABMD) : Free Stock Analysis Report
 
Stryker Corporation (SYK) : Free Stock Analysis Report
 
CONMED Corporation (CNMD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.