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ABIOMED (ABMD) to Report Q2 Earnings: What's in the Offing?

Zacks Equity Research

ABIOMED, Inc. ABMD is scheduled to release second-quarter fiscal 2020 results on Oct 31, before market open. We believe that despite persistent foreign currency woes, solid prospects of the flagship Impella product line will reflect on the results.

ABIOMED delivered an earnings surprise of 1% in the last reported quarter, the average earnings surprise being a positive 3.8% in the trailing four quarters.

Which Way Are Estimates Treading?

The Zacks Consensus Estimate for ABIOMED’s second-quarter earnings is pegged at 93 cents, indicating year-over-year improvement of 14.8%. The same for revenues stands at $206.3 million, suggesting an increase of 13.5% year over year.

Let’s see how things are shaping up prior to the earnings release.

ABIOMED, Inc. Price and EPS Surprise

 

ABIOMED, Inc. Price and EPS Surprise

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

Impella Likely to Drive Q2 Results

ABIOMED’s flagship product line, Impella, has consistently boosted the company’s top line. Impella, a support system of percutaneous, catheter-based devices offering hemodynamic support to the heart, is expected to have driven the fiscal second-quarter results as well.

Notably, the FDA PMA approval for the company’s Impella RP is a major positive. Additionally, the treatment success rates of ABIOMED’s SmartAssist, Impella Connect, IQ Impella Quality Assurance Database and Impella 5.0 are expected to reflect in the quarterly results.

Apart from these, the recent approval of the Impella Connect in Japan is expected to have expanded ABIOMED’s foothold in the APAC region, thereby driving overseas sales in the quarter to be reported.

At the 2019 Society for Cardiovascular Angiography & Interventions Scientific Sessions, ABIOMED announced the commercial availability of Impella CP with SmartAssist. (Read More: ABIOMED to Launch Impella CP With SmartAssist at SCAI)

Other Factors at Play

ABIOMED is currently facing fluctuations in currency exchange rates, which is likely to have impacted the company’s international sales.

Resultantly, ABIOMED expects total revenues in the range of $885-$925 million for fiscal 2020, representing a year-over-year upside of 15-20%. In comparison, the earlier guidance of $900-$945 million called for a year-over-year increase of 17-23%.

Earnings Whispers

Per our proven model, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to deliver a positive earnings surprise. That is not the case here as you will see below.

Earnings ESP: ABIOMED has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ABIOMED carries a Zacks Rank #5 (Strong Sell).

Stocks Worth a Look

Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.

Patterson Companies PDCO has an Earnings ESP of +2.44% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

AmerisourceBergen Corporation ABC has an Earnings ESP of +0.55% and a Zacks Rank #3.

Cardinal Health, Inc. CAH has an Earnings ESP of +1.50% and a Zacks Rank #3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

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ABIOMED, Inc. (ABMD) : Free Stock Analysis Report
 
Patterson Companies, Inc. (PDCO) : Free Stock Analysis Report
 
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AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report
 
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