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ABIOMED (ABMD) Earnings and Revenues Beat Estimates in Q4

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ABIOMED, Inc. reported fourth-quarter fiscal 2021 earnings per share (EPS) of $1.24, which beat the Zacks Consensus Estimate of $1.10 by 12.7%. Also, the figure improved 77.1% year over year.

For the fiscal fourth quarter, EPS came in at $4.94, which beat the Zacks Consensus Estimate of $4.80 by 2.9%. Also, the figure improved 11.5% year over year.

Revenues in Detail

Revenues of $241.2 million beat the Zacks Consensus Estimate by 4.7%. The metric also rose 16.7% from the prior-year quarter.

For fiscal 2021, revenues came in at $847.5 million, which beat the Zacks Consensus Estimate by 1.3%. Also, the figure improved 0.8% year over year.

Q4 in Detail

U.S. Impella product revenues totaled $186.1 million, reflecting a rise of 13% year over year. Per management, U.S. patient usage of the Impella heart pumps rose 13% in the quarter.

Outside the United States, Impella product revenues totaled $44.3 million, highlighting an increase of 33% year over year. Japan Impella product revenues and service improved 38% year over year to $11.6 million.

Margin Trend

In the quarter under review, gross profit totaled $195.2 million, up 16.7% year over year. Gross margin in the quarter was 80.9% of net revenues, highlighting a contraction of 5 basis points (bps) year over year.

Total operating costs came in at $132.4 million, up 21.2% from the prior-year quarter.

Operating profit totaled $62.8 million, up 8.2% on a year-over-year basis. Operating margin was 26%, down 206 bps.

 

ABIOMED, Inc. Price, Consensus and EPS Surprise

ABIOMED, Inc. Price, Consensus and EPS Surprise

 

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

 

Financial Condition

The company exited fiscal 2021 with $232.7 million of cash and cash equivalents compared with $192.3 million at the end of the year-ago period.

In fiscal 2021, cumulative cash flow from operating activities came in at $274.6 million.

The balance sheet was also debt free as of Mar 31, 2021.

Guidance

For fiscal 2022, global revenues are projected between $990 million and $1.03 billion, indicating 17-22% growth from the figure reported for fiscal 2021. The Zacks Consensus Estimate for the same is pegged at $987.9 million.

Summing Up

ABIOMED exited the fourth quarter of fiscal 2021 on a strong note. Impella revenues in the international markets improved in the quarter under review. Product launches and regulatory approvals continue to buoy optimism. Also, the company saw a rise in U.S. Impella revenues. Positive outcome from the Impella 5.5 SmartAssist study in the fiscal fourth quarter is impressive.

The recent FDA 510(k) clearance for the company’s Breethe OXY-1 cardiopulmonary bypass support system is a boon too. Notably, the company witnessed a deleveraged balance sheet in the quarter under review. The completion of the first phase of the Impella ECP heart pump FDA early feasibility study (EFS) continues to raise optimism on the stock.

However, contraction in both margins is worrying.

Zacks Rank and Key Picks

ABIOMED currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the same space are The Cooper Companies (COO - Free Report) , Owens & Minor, Inc.  (OMI - Free Report)  and DENTSPLY SIRONA Inc. (XRAY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for The Cooper Companies’ second-quarter fiscal 2021 revenues is pegged at $685.2 million, suggesting an improvement of 30.5% from the year-ago quarter’s reported figure. The same for EPS stands at $3.04, indicating growth of 101.3% from the year-ago period’s reported figure.

The Zacks Consensus Estimate for Owens & Minor’s first-quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion. 

The Zacks Consensus Estimate for DENTSPLY SIRONA’s first-quarter 2021 adjusted EPS is pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million.

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