Abiomed (ABMD) to Report Q3 Earnings: What's in the Cards?
Abiomed, Inc. ABMD is scheduled to report third-quarter fiscal 2022 results on Feb 3, before market opens.
In the last-reported quarter, the company’s earnings of $1.03 per share surpassed the Zacks Consensus Estimate by 5.1%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 5.84%.
Let’s see how things have shaped up for Abiomed prior to this announcement.
Factors to Note
Per the fiscal 2022 second-quarter earnings call in October 2021, Abiomed had confirmed that its Impella 5.5 with SmartAssist has been performing well over the past few months on the back of sustained 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 third quarter as well, on the back of expansion of this life-saving device.
Also, sustained demand has been recorded for the Impella 5.0, Impella RP, as well as Impella 2.5 and CP, over the past few months. This trend is likely to have continued in the to-be-reported quarter, thereby significantly pushing up revenues.
Abiomed, Inc. Price and EPS Surprise
Abiomed, Inc. price-eps-surprise | Abiomed, Inc. Quote
During the same call, Abiomed had confirmed that clinical feedback for its Breethe OXY-1 System has been favorable. This positive feedback is likely to have continued in the fiscal third quarter, thereby leading to robust product adoption and sales.
Abiomed, during its fiscal 2022 second-quarter earnings call, had confirmed that the Impella Connect software has been made live at more than 85% of its U.S. sites, 37% of its Japanese sites and 14% of its European sites. 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 third quarter as well, on the back of continued robust customer adoption. This is expected to have significantly driven 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 third quarter, thereby boosting revenues.
However, the company has been facing high pricing pressure due to intensifying competition in the key markets for a while now. Also, the continued COVID-19 resurgences might lead to the postponement of elective procedures. These are expected to have weighed on the company’s margin expansion in the soon-to-be-reported quarter.
The Estimate Picture
For third-quarter fiscal 2022, the Zacks Consensus Estimate of $253.2 million for Abiomed’s total revenues implies an improvement of 9.3% from the prior-year quarter’s reported figure.
The consensus estimate for earnings per share is pegged at 98 cents, indicating a decline of 16.2% 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 -0.85%. 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.
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.
AMN Healthcare Services, Inc. AMN has an Earnings ESP of +10.29% and a Zacks Rank of 2. AMN has an estimated long-term growth rate of 16.2%.
AMN Healthcare’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.51%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Laboratory Corporation of America Holdings LH or LabCorp has an Earnings ESP of +9.21% and a Zacks Rank of 1, at present. LH has an estimated long-term growth rate of 10.6%.
LabCorp’s earnings surpassed estimates in all of the trailing four quarters, the average surprise being 25.73%.
Henry Schein, Inc. HSIC has an Earnings ESP of +2.62% and is a Zacks #2 Ranked stock. HSIC has an estimated long-term growth rate of 11.8%.
Henry Schein’s earnings surpassed estimates in the trailing four quarters, the average surprise being 21.86%.
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