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Abiomed (ABMD) to Report Q2 Earnings: What's in the Cards?

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Abiomed, Inc. ABMD is scheduled to report second-quarter fiscal 2022 results on Oct 28, before market opens.

In the last-reported quarter, the company’s earnings of $1.10 surpassed the Zacks Consensus Estimate by 3.8%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 8.58%.

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

Factors to Note

Abiomed, during its fiscal 2022 first-quarter earnings call in August, had confirmed that its Impella 5.5 with SmartAssist has been performing well over the past few months on the back of continued steady demand. This had considerably driven the company’s U.S. Surgical revenues in the last-reported quarter. This improving trend is expected to have continued in the fiscal second quarter as well, on the back of expansion of this life-saving device to 46 more sites (or 257 sites out of the 1,113 heart hospitals).

The company also confirmed to continue the rolling out of the device to the remaining 856 heart hospitals in the United States as well as to other countries. This is likely to have significantly contributed to Abiomed’s revenues in the to-be-reported quarter.

In August, the company received the FDA’s breakthrough device designation for its Impella ECP expandable percutaneous heart pump. The same month, during the fiscal first-quarter earnings release, Abiomed announced the acquisition of the remaining interest of preCARDIA. The buyout is expected to complement Abiomed’s product portfolio to expand options for upstream heart failure patients acutely decompensating.

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

During the same earnings release, the company announced that the Impella RP with SmartAssist received the FDA’s pre-market approval in June as safe and effective to treat acute right heart failure for up to 14 days. These developments are likely to have driven up the company’s revenues in the fiscal 2022 second-quarter.

Abiomed, during its last update, had confirmed that the Impella Connect software has been made live at more than 80% of its U.S. sites, and that it continues to accelerate the latter’s rollout in Germany and Japan. This is expected to have driven quarterly revenues as well.

Strong momentum of the Impella product line, which was seen in the last-reported quarter, is expected to have continued through the fiscal 2022 second quarter as well, on the back of continued robust customer adoption. Other notable offerings from the company include ECMO with Breethe, ECPella, Impella CP and Impella RP, which are likely to have maintained their strong demand, thereby pushing up revenues in the to-be-reported quarter.

Abiomed’s strong international performance, especially in Europe and Japan, is likely to have remained robust, primarily on the back of a strong recovery in patient utilization. This trend is likely to have continued in the fiscal 2022 second quarter, thereby driving up revenues.

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 second-quarter fiscal 2022, the Zacks Consensus Estimate of $248.4 million for Abiomed’s total revenues implies an improvement of 18.4% from the prior-year quarter’s reported figure.

The consensus estimate for earnings per share is pegged at 98 cents, indicating a decline of 2.9% from the prior-year period’s reported number.

What Our Model Suggests

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here as you can see:

Earnings ESP: Abiomed has an Earnings ESP of +1.02%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

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.

Insulet Corporation PODD has an Earnings ESP of +15.79% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

DexCom, Inc. DXCM has an Earnings ESP of +5.46% and a Zacks Rank of 2, at present.

Laboratory Corporation of America Holdings LH or LabCorp has an Earnings ESP of +27.39% and is a Zacks #2 Ranked stock.


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