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Abiomed (ABMD) to Report Q1 Earnings: What's in the Cards?

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Abiomed, Inc. ABMD is scheduled to report first-quarter fiscal 2023 results on Aug 4, before market opens.

In the last-reported quarter, the company’s earnings of $1.16 per share surpassed the Zacks Consensus Estimate by 7.4%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 7.9%.

Let’s see how things have shaped up for Abiomed prior to this announcement.

Factors to Note

During the fiscal 2022 fourth-quarter earnings call in April, Abiomed confirmed that Impella 5.5 with SmartAssist and Impella Connect has been witnessing robust adoption over the past few months. Also, in April, Impella 5.5 with SmartAssist was used in a procedure in Japan. The strong momentum is also likely to have continued into the fiscal 2023 first quarter as well on the back of sustained adoption across the world, thereby significantly driving the overall top line.

Abiomed’s receipt of regulatory approval for Impella technology in Japan and Hong Kong and grant of an Early Feasibility Study Investigational Device Exemption to Impella BTR (Bridge-to-Recovery) in the United States in January looks promising. During the fiscal fourth-quarter earnings call, Abiomed confirmed that it was granted breakthrough device and Category B designation from the FDA for the Impella ECP and opened 646 sites globally with Impella Connect. These developments raise our optimism about the stock.

Abiomed, Inc. Price and EPS Surprise

Abiomed, Inc. Price and EPS Surprise
Abiomed, Inc. Price and EPS Surprise

Abiomed, Inc. price-eps-surprise | Abiomed, Inc. Quote

Abiomed’s Impella ECP is also likely to have witnessed strong customer adoption in the to-be-reported quarter due to its design which is expected to enable physicians to provide critical hemodynamic support to coronary artery disease patients. This, in turn, is expected to enable safer percutaneous coronary intervention procedures and complete revascularization, ultimately achieving the goal of improving their ejection fraction or heart function. This, along with Impella RP with SmartAssist, is likely to have driven up the fiscal first quarter revenues.

During the fiscal fourth-quarter earnings call, Abiomed confirmed that it witnessed strength in Europe (driven by strong performance in Germany, Belgium and Italy, and positive benefit from sales mix) and Japan businesses. The positive benefit from sales mix the company derived from its European business in the last-reported quarter is expected to have continued in the to-be-reported quarter as well as Abiomed fully transitions to Impella CP with SmartAssist. This is expected to have considerably pushed the company’s top line.

However, the company has been facing high pricing pressure due to intensifying competition in the key markets for a while now. This is expected to have weighed on the company’s margin expansion in the soon-to-be-reported quarter.

The Estimate Picture

For first-quarter fiscal 2023, the Zacks Consensus Estimate of $280.7 million for Abiomed’s total revenues implies an improvement of 11.1% from the prior-year quarter’s reported figure.

Our projection of fiscal first-quarter revenue is currently pegged at $277.9 million.

The consensus estimate for earnings per share is pegged at $1.09, indicating a decline of 0.9% from the prior-year period’s reported number.

Our projection of adjusted earnings per share (EPS) is currently pegged at $1.15.

What Our Model Suggests

Our proven model predicts an earnings beat for Abiomed this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Abiomed has an Earnings ESP of +2.30%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Other Stocks Worth a Look

Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.

Centessa Pharmaceuticals plc CNTA has an Earnings ESP of +2.70% and a Zacks Rank of 2. CNTA has an estimated growth rate of 20.6% for 2023.

Centessa Pharmaceuticals’ earnings surpassed estimates in two of the trailing four quarters and lagged the same in the other two, with the average being 6.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

STERIS plc STE has an Earnings ESP of +1.85% and is a Zacks #2 Rank stock. STE has an estimated growth rate of 9.9% for fiscal 2023.

STERIS’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 9.2%.

Sight Sciences, Inc. SGHT has an Earnings ESP of +14.29% and is a Zacks #2 Ranked stock. SGHT has an estimated growth rate of 23.7% for 2022.

Sight Sciences’ projected EPS growth currently stands at 23.6% compared with the industry’s 5.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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ABIOMED, Inc. (ABMD) : Free Stock Analysis Report
STERIS plc (STE) : Free Stock Analysis Report
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