About a month has gone by since the last earnings report for Abiomed , Inc. . Shares have added about 10.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Recent Earnings
Danvers, MA-based Abiomed, a leading developer, manufacturer and marketer of medical products, reported second-quarter fiscal 2018 earnings of 44 cents per share, which came ahead of the Zacks Consensus Estimate of 37 cents. The figure was also higher than 20 cents in the year-ago quarter.
In the reported quarter, revenues increased roughly 29% year over year to $132.8 million approximately, outpacing the Zacks Consensus Estimate of $131.0 million. The year-over-year upside was supported by robust performance of the Impella heart pump product line.
Quarter Highlights
Globally, Impella heart pump’s global revenues grew a strong 30% to $127.4 million in the quarter.
U.S. Impella revenues improved 27% to $113.6 million (driven by a 33% increase in patient utilization). Outside the U.S., revenues shot up 61% to $13.8 million. Germany accounted for the majority of the international revenues, which grew 64% on a year-over-year basis.
During the reported quarter, the installed base for Impella 2.5 heart pumps in the U.S. grew by 17 hospitals, raising taking the installed customer base total to 1,171 sites. The installed customer base for Impella CP heart pumps grew by 31 U.S. hospitals, reaching a total of 1093.
Overall operating income for the reported quarter came in at $31.7 million or 24% of operating margin (as a percentage of revenues), compared with $14.5 million or 14% in the prior-year quarter.
Abiomed’s gross margin in the second quarter was 84%, compared with 83% in the second quarter of fiscal 2016.
Financial Condition
Abiomed’s cash and cash equivalents were $44.5 million as of Sep 30 compared with $39.0 million as of Mar 31. Notably, management announced that the company currently has no debt.
Guidance
Abiomed forecasts fiscal 2018 revenues in the range of $565 million to $575 million. This marks an increase of 27–29% from the fiscal 2016 level. Operating margin is projected in the band of 23% to 25%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
VGM Scores
At this time, Abiomed's stock has a strong Growth Score of A, though it is lagging a lot on the momentum front with a C. The stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for growth investors than momentum investors.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions has been net zero. The stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.
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Abiomed (ABMD) Up 10.5% Since Earnings Report: Can It Continue?
About a month has gone by since the last earnings report for Abiomed , Inc. . Shares have added about 10.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Recent Earnings
Danvers, MA-based Abiomed, a leading developer, manufacturer and marketer of medical products, reported second-quarter fiscal 2018 earnings of 44 cents per share, which came ahead of the Zacks Consensus Estimate of 37 cents. The figure was also higher than 20 cents in the year-ago quarter.
In the reported quarter, revenues increased roughly 29% year over year to $132.8 million approximately, outpacing the Zacks Consensus Estimate of $131.0 million. The year-over-year upside was supported by robust performance of the Impella heart pump product line.
Quarter Highlights
Globally, Impella heart pump’s global revenues grew a strong 30% to $127.4 million in the quarter.
U.S. Impella revenues improved 27% to $113.6 million (driven by a 33% increase in patient utilization). Outside the U.S., revenues shot up 61% to $13.8 million. Germany accounted for the majority of the international revenues, which grew 64% on a year-over-year basis.
During the reported quarter, the installed base for Impella 2.5 heart pumps in the U.S. grew by 17 hospitals, raising taking the installed customer base total to 1,171 sites. The installed customer base for Impella CP heart pumps grew by 31 U.S. hospitals, reaching a total of 1093.
Overall operating income for the reported quarter came in at $31.7 million or 24% of operating margin (as a percentage of revenues), compared with $14.5 million or 14% in the prior-year quarter.
Abiomed’s gross margin in the second quarter was 84%, compared with 83% in the second quarter of fiscal 2016.
Financial Condition
Abiomed’s cash and cash equivalents were $44.5 million as of Sep 30 compared with $39.0 million as of Mar 31. Notably, management announced that the company currently has no debt.
Guidance
Abiomed forecasts fiscal 2018 revenues in the range of $565 million to $575 million. This marks an increase of 27–29% from the fiscal 2016 level. Operating margin is projected in the band of 23% to 25%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
VGM Scores
At this time, Abiomed's stock has a strong Growth Score of A, though it is lagging a lot on the momentum front with a C. The stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for growth investors than momentum investors.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions has been net zero. The stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.