ABIOMED, Inc. reported fourth-quarter fiscal 2018 earnings per share of 80 cents, which beat the Zacks Consensus Estimate by 25%.Earnings improved a huge 142.4% from the year-ago quarter.

 

In the past six months, ABIOMED’s shares have gained 77.3% against the industry’s decline of 10.1%.

 

ABIOMED has a Zacks Rank #2 (Buy).

 

 

Revenues in the reported quarter came in at $174.4 million, beating the Zacks Consensus Estimate by 6.3%. Revenues also increased 40% from the prior-year quarter.

 

Per management, the upside was driven by U.S. patient utilization growth of35% on a year-over-year basis.

 

Reorder performance continued to be strong in the quarter. U.S. reorders increased 35% to 140 million from the prior-year quarter, which translated into a reorder rate of approximately 100%. Average combined inventory at the hospitals for the Impella 2.5 and the Impella CP rose slightly to 3.8 units per site versus 3.7 in the prior quarter and 3.4 last year.

Impella heart pump worldwide revenues in the quarter under review totaled $198.3 million, up 42% year over year.

 

In the United States, Impella raked in $146.2 million, up 35% from the year-ago quarter.

 

Outside the United States, fourth-quarter revenues generated from Impella heart pumps was $22.1 million, up a whopping 107%, year over year. Significant contributions came from Germany which recorded $15 million of revenues, up 95% year over year.

 

Recently, the Impella line clinched a plethora of regulatory approvals from the FDA.

 

 

In the quarter under review, gross margin was 82.7%, down 190 basis points (bps) year over year.

 

Operating income in the quarter grossed $47.6 million, up 64.1% on a year-over-year basis. Operating margin was 27.3% which expanded 400 bps.

 

 

ABIOMED’s balance sheet has been strong at the end of fiscal 2018. The company generated $49.1 million of cash, cash equivalents and marketable securities at the end of fourth quarter. The company is currently debt-free.

 

 

Infiscal 2018, total revenues were $593.7 million, up 33% from fiscal 2017.

 

Fiscal 2018 worldwide Impella heart pump revenues totaled $570.9 million, showing an increase of 35% year over year.

 

In the United States, 2018 Impella revenues totaled $505.1 million, up 30% from 2017.

 

Outside the United States, revenues from Impella heart pumps totaled $65.7 million, up 81% year over year. Revenues of $45.2 million came from Germany, up 70% on a year-over-year basis.

 

Full-year gross margin was 83.4%, down 70 bps year over year.

 

Operating income in the full year came in at $157.1 million, operating margin being 26.5%. Operating margin expanded 630 bps.

 

Cash and cash equivalents totaled $399.8 million in fiscal 2018.

 

 

For fiscal 2019, the company expects total revenues in the range of $740-$770 million, reflecting an increase of 25% to 30% over the prior fiscal. Notably, the Zacks Consensus Estimate for revenues is pegged at $753.9 million, which lies within the projected range.

 

Full-year tax rate is expected between 28% and 30%.

 

 

ABIOMED ended fiscal 2018 on a solid note. The flagship Impella line continues to drive growth. A string of FDA approvals is encouraging. An expansion in operating margin is also a major positive. The company also has a solid global foothold, which buoys optimism. However, a decline in gross margin raises concern. The company continues to face foreign exchange volatility. Intense competition in the niche space adds to the woes.

 

 

Some other top-ranked stocks in the broader medical space which have reported solid results this season are Intuitive Surgical (ISRG Quick QuoteISRG - Free Report) , Chemed Corporation (CHE Quick QuoteCHE - Free Report) and Baxter International Inc. (BAX Quick QuoteBAX - Free Report) . While Intuitive Surgical sports a Zacks Rank #1 (Strong Buy), Chemed and Baxter carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

Intuitive Surgical reported first-quarter 2018 adjusted earnings per share of $2.44, which beat the Zacks Consensus Estimate by 22.6%. Revenues totaled $848 million, also surpassing the consensus estimate by 10.6%.

 

Chemed posted first-quarter 2018 adjusted earnings per share of $2.72, surpassing the Zacks Consensus Estimate of $2.37. Revenues came in at $439.2 million, beating the Zacks Consensus Estimate of $420 million.

 

Baxter posted first-quarter 2018 adjusted earnings per share of 70 cents, which beat the Zacks Consensus Estimate by 12.9%. Revenues of $2.68 billion also edged past the consensus markof $2.62 billion.

 

 

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