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ABIOMED (ABMD) Beats Earnings and Revenue Estimates in Q3
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ABIOMED Inc. reported third-quarter fiscal 2018 adjusted earnings of 70 cents per share, easily beating the Zacks Consensus Estimate of 50 cents. Moreover, adjusted earnings per share grew a whopping 105.9% on a year-over-year basis.
Revenues
In the reported quarter, revenues increased roughly by 34% on a year-over-year basis to $154 million, outpacing the Zacks Consensus Estimate of $148 million. The upside was supported by robust performance of the Impella heart pump product line. The company witnessed three months of impressive Impella performance during the quarter.
In the quarter under review, product revenues totaled $153.9 million reflecting an increase of 34% compared with the prior-year quarter. Funded research and development revenues, accounting for the rest of the total revenues, declined 34% year over year.
Impella, ABIOMED’s flagship product line has continued to be a growth catalyst, reflecting stellar performance in the reported quarter.
In the United States, the PCI and cardiogenic shock indications established new quarterly records. The company’s Impella adoption increased a total of 9% of the 121,000 high-risk PCI and 100,000 emergency patients. Outside the United States, revenues from Impella heart pumps totaled $17.3 million and were up 94% year over year.
Further, ABIOMED opened 36 new sites of Impella RP for a total of 222 hospitals, which set a record for patients supported.
Gross margin in the reported quarter is 83.8%, which expanded 40 basis points (bps) from the year-ago quarter. It has been favorably impacted by higher production levels as the company produced record number of pumps.
Operating margin is 29.1%, which expanded an impressive 690 bps on a year-over-year basis. The upside is attributable to strong revenue growth, which had partially offset the increase in research and development and selling, general and administrative expenditures.
Financial Position
In the third quarter, ABIOMED generated $56.7 million in cash from operating activities at the end of the third quarter.
Cash, cash equivalents and marketable securities totaled $350.7 million.
The company currently has no debt since it is not currently a cash income tax payer.
In 2017, the company officially closed on the purchase of its Danvers, Massachusetts global headquarters for $16.5 million.
Guidance Raised
Based on the strong third-quarter performance, the company increased fiscal 2018 revenue guidance again to $583 million from earlier expectation of $565 to $575 million. The Zacks Consensus Estimate of $577.23 million falls below the projected number.
Fourth-quarter revenues are estimated at approximately $164 million, up 31% on a year-over-year basis. The Zacks Consensus Estimate of $161.74 million, for fourth-quarter revenues falls below the anticipated figure.
The guidance for operating margin for fiscal 2018 has also been raised to approximately 26% from earlier expectation of 23% to 25%.
Our Take
ABIOMED exited the third quarter of fiscal 2018 with better-than-expected results revenues and margins. During the quarter, the company witnessed breakthroughs in terms of record revenue and earnings growth.
Impella product pipe line continues to be the forerunner, aiding the company gain solid global foothold. Also, the company is progressing in the field of heart recovery. Management is optimistic about capturing the $5 billion U.S. market opportunity. We are also impressed with the company’s strong margin performance. The company’s balance sheet is debt free, which fortifies its financial position at the end of the reported quarter.
However, cutthroat competition in the niche space continues to be a woe.
PetMed recently reported third-quarter fiscal 2018 results. Adjusted earnings per share was 44 cents, up 88.3% from the prior-year quarter. Revenues in the reported quarter rose 13.7% on a year-over-year basis to $60.1 million.
PerkinElmer reported fourth-quarter 2017 adjusted earnings per share of 97 cents. Adjusted revenues were approximately $641.6 million, up from $567 million in the year-ago quarter.
ResMed posted second-quarter fiscal 2018 adjusted earnings per share of $1, up 36.9% from the prior-year quarter. Revenues in the reported quarter increased 13.4% year over year (up 11% at constant exchange rate or CER) to $601.3 million.
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ABIOMED (ABMD) Beats Earnings and Revenue Estimates in Q3
ABIOMED Inc. reported third-quarter fiscal 2018 adjusted earnings of 70 cents per share, easily beating the Zacks Consensus Estimate of 50 cents. Moreover, adjusted earnings per share grew a whopping 105.9% on a year-over-year basis.
Revenues
In the reported quarter, revenues increased roughly by 34% on a year-over-year basis to $154 million, outpacing the Zacks Consensus Estimate of $148 million. The upside was supported by robust performance of the Impella heart pump product line. The company witnessed three months of impressive Impella performance during the quarter.
In the quarter under review, product revenues totaled $153.9 million reflecting an increase of 34% compared with the prior-year quarter. Funded research and development revenues, accounting for the rest of the total revenues, declined 34% year over year.
Impella, ABIOMED’s flagship product line has continued to be a growth catalyst, reflecting stellar performance in the reported quarter.
In the United States, the PCI and cardiogenic shock indications established new quarterly records. The company’s Impella adoption increased a total of 9% of the 121,000 high-risk PCI and 100,000 emergency patients. Outside the United States, revenues from Impella heart pumps totaled $17.3 million and were up 94% year over year.
Further, ABIOMED opened 36 new sites of Impella RP for a total of 222 hospitals, which set a record for patients supported.
ABIOMED, Inc. Price, Consensus and EPS Surprise
ABIOMED, Inc. Price, Consensus and EPS Surprise | ABIOMED, Inc. Quote
Margins
Gross margin in the reported quarter is 83.8%, which expanded 40 basis points (bps) from the year-ago quarter. It has been favorably impacted by higher production levels as the company produced record number of pumps.
Operating margin is 29.1%, which expanded an impressive 690 bps on a year-over-year basis. The upside is attributable to strong revenue growth, which had partially offset the increase in research and development and selling, general and administrative expenditures.
Financial Position
In the third quarter, ABIOMED generated $56.7 million in cash from operating activities at the end of the third quarter.
Cash, cash equivalents and marketable securities totaled $350.7 million.
The company currently has no debt since it is not currently a cash income tax payer.
In 2017, the company officially closed on the purchase of its Danvers, Massachusetts global headquarters for $16.5 million.
Guidance Raised
Based on the strong third-quarter performance, the company increased fiscal 2018 revenue guidance again to $583 million from earlier expectation of $565 to $575 million. The Zacks Consensus Estimate of $577.23 million falls below the projected number.
Fourth-quarter revenues are estimated at approximately $164 million, up 31% on a year-over-year basis. The Zacks Consensus Estimate of $161.74 million, for fourth-quarter revenues falls below the anticipated figure.
The guidance for operating margin for fiscal 2018 has also been raised to approximately 26% from earlier expectation of 23% to 25%.
Our Take
ABIOMED exited the third quarter of fiscal 2018 with better-than-expected results revenues and margins. During the quarter, the company witnessed breakthroughs in terms of record revenue and earnings growth.
Impella product pipe line continues to be the forerunner, aiding the company gain solid global foothold. Also, the company is progressing in the field of heart recovery. Management is optimistic about capturing the $5 billion U.S. market opportunity. We are also impressed with the company’s strong margin performance. The company’s balance sheet is debt free, which fortifies its financial position at the end of the reported quarter.
However, cutthroat competition in the niche space continues to be a woe.
Zacks Ranks & Other Stocks to Consider
ABIOMED carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks that reported solid results this earnings season are, PetMed Express (PETS - Free Report) , PerkinElmer and ResMed (RMD - Free Report) . While PetMed sports a Zacks Rank #1 (Strong Buy), PerkinElmer and ResMed carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed recently reported third-quarter fiscal 2018 results. Adjusted earnings per share was 44 cents, up 88.3% from the prior-year quarter. Revenues in the reported quarter rose 13.7% on a year-over-year basis to $60.1 million.
PerkinElmer reported fourth-quarter 2017 adjusted earnings per share of 97 cents. Adjusted revenues were approximately $641.6 million, up from $567 million in the year-ago quarter.
ResMed posted second-quarter fiscal 2018 adjusted earnings per share of $1, up 36.9% from the prior-year quarter. Revenues in the reported quarter increased 13.4% year over year (up 11% at constant exchange rate or CER) to $601.3 million.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
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