We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Abiomed (ABMD) Q2 Earnings Top Estimates, Margins Down
Read MoreHide Full Article
Abiomed, Inc. delivered adjusted earnings per share (EPS) of $1.30 in the second quarter of fiscal 2023, up 26.2% year over year. The figure surpassed the Zacks Consensus Estimate by 23.8%.
Our projection of adjusted EPS was $1.08.
GAAP EPS for the quarter was $2.32, up by 87.1% year over year.
Revenues in Detail
Abiomed registered revenues of $265.9 million in the fiscal second quarter, up 7.2% year over year. The figure, however, lagged the Zacks Consensus Estimate by 2.7%.
At constant exchange rate (CER), revenues improved by 11%.
The fiscal second-quarter revenue compares to our estimate of $275.5 million, up 11% on a reported basis and 13% at CER.
The top line was driven by continued strength in the company’s Impella heart pump product revenues across the world.
Q2 in Detail
Worldwide Impella heart pump product revenues for the quarter totaled $253.2 million, an increase of 7.4% from the prior-year quarter. At CER, revenues improved 11%.
U.S. Impella product revenues totaled $207.9 million, reflecting a rise of 9.6% year over year.
Outside the United States (OUS), Impella product revenues totaled $45.3 million, highlighting a decrease of 1.6% year over year on a reported basis. At CER, revenues improved 16%.
Japan product revenues improved 1.5% year over year on a reported basis (up 28% at CER) to $12 million, while Europe product revenues for the quarter totaled $29 million, down by 7.3% on a reported basis but up 9% at CER compared with the prior-year quarter.
In the quarter under review, Abiomed’s gross profit rose 6.3% to $217 million. Gross margin contracted 70 basis points (bps) to 81.6%.
We had projected a gross margin of 80.7% for the fiscal second quarter.
Selling, general & administrative expenses rose 13.8% to $116.9 million. Research and development expenses went up 2.6% year over year to $42.1 million. Adjusted operating expenses of $159 million increased 10.6% year over year.
Adjusted operating profit totaled $57.9 million, reflecting a 4% decline from the prior-year quarter. The adjusted operating margin in the fiscal second quarter contracted 255 bps to 21.8%.
The adjusted operating margin, according to our model, was 21.2% for the fiscal second quarter.
Financial Position
Abiomed exited the second quarter of fiscal 2023 with cash and cash equivalents of $182.3 million compared with $180.5 million at the end of the fiscal first quarter.
The balance sheet was debt free as of Sep 30, 2022.
Our Take
Abiomed exited the second quarter of fiscal 2023 with better-than-expected earnings. The year-over-year uptick in the top and bottom lines, and continued strength in its global Impella revenues are impressive. Abiomed’s progress regarding its Impella product line raises investors’ optimism regarding the stock. The company’s robust geographical performance is also encouraging.
During the fiscal second quarter, Abiomed announced favorable results of the RESTORE EF study (in August) and received two FDA approvals related to clinical research of Impella heart pumps in acute myocardial infarction cardiogenic shock patients (in September). These look promising for the stock. Notably, the company continued to witness a deleveraged balance sheet in the quarter under review.
However, lower-than-expected revenues in the fiscal second quarter are disappointing. The decline in OUS and Europe product revenues on a reported basis is also concerning. The contraction of both margins does not bode well. Stiff competition and forex woes continue to bother Abiomed.
Zacks Rank and Other Key Picks
Abiomed currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Elevance Health Inc. (ELV - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
Elevance Health, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of $7.53, which beat the Zacks Consensus Estimate by 6.1%. Revenues of $39.63 billion outpaced the consensus mark by 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Elevance Health has an estimated long-term growth rate of 12%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average being 4.1%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 44.9% for the full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Merit Medical, flaunting a Zacks Rank #1, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Abiomed (ABMD) Q2 Earnings Top Estimates, Margins Down
Abiomed, Inc. delivered adjusted earnings per share (EPS) of $1.30 in the second quarter of fiscal 2023, up 26.2% year over year. The figure surpassed the Zacks Consensus Estimate by 23.8%.
Our projection of adjusted EPS was $1.08.
GAAP EPS for the quarter was $2.32, up by 87.1% year over year.
Revenues in Detail
Abiomed registered revenues of $265.9 million in the fiscal second quarter, up 7.2% year over year. The figure, however, lagged the Zacks Consensus Estimate by 2.7%.
At constant exchange rate (CER), revenues improved by 11%.
The fiscal second-quarter revenue compares to our estimate of $275.5 million, up 11% on a reported basis and 13% at CER.
The top line was driven by continued strength in the company’s Impella heart pump product revenues across the world.
Q2 in Detail
Worldwide Impella heart pump product revenues for the quarter totaled $253.2 million, an increase of 7.4% from the prior-year quarter. At CER, revenues improved 11%.
U.S. Impella product revenues totaled $207.9 million, reflecting a rise of 9.6% year over year.
Outside the United States (OUS), Impella product revenues totaled $45.3 million, highlighting a decrease of 1.6% year over year on a reported basis. At CER, revenues improved 16%.
Japan product revenues improved 1.5% year over year on a reported basis (up 28% at CER) to $12 million, while Europe product revenues for the quarter totaled $29 million, down by 7.3% on a reported basis but up 9% at CER compared with the prior-year quarter.
Abiomed, Inc. Price, Consensus and EPS Surprise
Abiomed, Inc. price-consensus-eps-surprise-chart | Abiomed, Inc. Quote
Margin Trend
In the quarter under review, Abiomed’s gross profit rose 6.3% to $217 million. Gross margin contracted 70 basis points (bps) to 81.6%.
We had projected a gross margin of 80.7% for the fiscal second quarter.
Selling, general & administrative expenses rose 13.8% to $116.9 million. Research and development expenses went up 2.6% year over year to $42.1 million. Adjusted operating expenses of $159 million increased 10.6% year over year.
Adjusted operating profit totaled $57.9 million, reflecting a 4% decline from the prior-year quarter. The adjusted operating margin in the fiscal second quarter contracted 255 bps to 21.8%.
The adjusted operating margin, according to our model, was 21.2% for the fiscal second quarter.
Financial Position
Abiomed exited the second quarter of fiscal 2023 with cash and cash equivalents of $182.3 million compared with $180.5 million at the end of the fiscal first quarter.
The balance sheet was debt free as of Sep 30, 2022.
Our Take
Abiomed exited the second quarter of fiscal 2023 with better-than-expected earnings. The year-over-year uptick in the top and bottom lines, and continued strength in its global Impella revenues are impressive. Abiomed’s progress regarding its Impella product line raises investors’ optimism regarding the stock. The company’s robust geographical performance is also encouraging.
During the fiscal second quarter, Abiomed announced favorable results of the RESTORE EF study (in August) and received two FDA approvals related to clinical research of Impella heart pumps in acute myocardial infarction cardiogenic shock patients (in September). These look promising for the stock. Notably, the company continued to witness a deleveraged balance sheet in the quarter under review.
However, lower-than-expected revenues in the fiscal second quarter are disappointing. The decline in OUS and Europe product revenues on a reported basis is also concerning. The contraction of both margins does not bode well. Stiff competition and forex woes continue to bother Abiomed.
Zacks Rank and Other Key Picks
Abiomed currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Elevance Health Inc. (ELV - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
Elevance Health, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of $7.53, which beat the Zacks Consensus Estimate by 6.1%. Revenues of $39.63 billion outpaced the consensus mark by 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Elevance Health has an estimated long-term growth rate of 12%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average being 4.1%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 44.9% for the full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Merit Medical, flaunting a Zacks Rank #1, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.