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Here's Why Investors Should Bet on Abiomed (ABMD) Stock Now

Zacks Equity Research

Abiomed Inc. ABMD is expected to benefit from strong demand for its Impella line of products. Impella’s patient success stories and increasing global adoptions are major positives.

Price Performance

In a year’s time, shares of this Zacks Rank #2 (Buy) company have surged 49.3% compared with the industry’s 5% growth. Meanwhile, the S&P 500 index declined 5.8%.

Let us take a quick look at the factors that make Abiomed a solid pick for now.

Preliminary Results

Abiomed announced preliminary results for third-quarter fiscal 2019. Revenues are anticipated to come in at $200.6 million, up 30% year over year and well ahead of the Zacks Consensus Estimate of $194.9 million. The company is scheduled to release full financial results on Jan 31, 2019.

Fiscal 2019 Guidance Raised

Abiomed raised its fiscal 2019 guidance.

For the fiscal year, the company expects revenues to be approximately $780 million, up from $765-$770 million projected earlier. This shows a 31% increase from the prior-year figure.

Impella – A Key Catalyst

In the fiscal second quarter, Abiomed’s flagship Impella heart pump generated revenues of $175.3 million, up 38% year over year.

U.S. Impella heart pump revenues totaled $152.2 million in the quarter, reflecting a 34%increase from the prior-year quarter number.

Outside the United States, Impella heart pump revenues summed $23.1 million, up 67% year over year.

In the United States, the Impella 2.5 and CP were installed at approximately 1,250 sites by the end of the reported quarter. Also, the Impella 5.0 and RP were installed at 559 and 368 sites, respectively.

Abiomed expects to see strong contribution from its core Impella product lines in the quarters ahead.

Which Way Are Estimates Treading?

The Zacks Consensus Estimate third-quarter earnings is pegged at 34 cents, reflecting 34.3% improvement year over year. For fiscal 2019, the same for earnings is pinned at $5.05, up 106.1% year over year. The consensus mark for revenues stands at $768.7 million, mirroring 29.5% rise year over year.

ABIOMED, Inc. Price and Consensus

 

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

Other Stocks to Consider

Some other top-ranked stocks in the broader medical space are Veeva Systems Inc VEEV, Becton, Dickinson and Company BDX and OPKO Health, Inc OPK.

Veeva Systems’ long-term earnings growth rate is projected at 19.5%. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Becton, Dickinson’s long-term earnings growth rate is projected at 11.5%. The stock carries a Zacks Rank of 2.

OPKO Health’s long-term earnings growth rate is projected at 12%. The stock has a Zacks Rank #1.

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