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Abiomed, Inc. reported first-quarter fiscal 2019 earnings per share of 78 cents, which missed the Zacks Consensus Estimate of 80 cents. Adjusted earnings surged 73.3% from the year-ago quarter’s tally.
Revenues in the reported quarter came in at $180 million, beating the Zacks Consensus Estimate of $171.9 million. Revenues also increased 35.9% from the prior-year quarter’s figure.
Q1 in Detail
Geographic Analysis
Outside the United States, revenues totaled $22 million, up 75% year over year, with Europe being the key catalyst. European revenues rallied 53%, with German revenues up 42% year over year.
In the first quarter, Impella contributed $2.6 million in revenues in Japan. The company treated patients in Hong Kong, Australia, Singapore, Israel and most recently in India.
U.S. Impella revenues rose 32% to $152 million on a year-over-year basis. This was driven by a 30% increase in patient utilization. U.S. reorder revenueswere$145 million in the quarter under discussion.
In the United States, the Impella 2.5 and the Impella CP have been placed at roughly 1,200 sites. Additionally, the Impella 5.0 and the Impella RP have been installed at 540 and 320 sites, respectively.
Impella adoption in the Protected PCI and cardiogenic shock indications grew 24% and 37%, respectively, on a year-over-year basis.
Margin Trends
In the quarter under review, gross margin was 82.9%, down 600 basis points (bps) year over year. Per management, the downside was mainly caused by product and geographic mix as well as incremental manufacturing investments to support future growth initiatives.
Research & Development costs in the quarter were $21.2 million, up 25.6% year over year.
Operating income in the quarter grossed $46.7 million, up 41.3% on a year-over-year basis. Operating margin was 25.8%, expanding 80 bps year over year.
FY19 Outlook
The company raised guidance for fiscal 2019.
For fiscal 2019, the company expects total revenues in the range of $755-$770 million, up from the previous guidance of $740-$770 million.
This reflects an increase of 27-30% over the previous fiscal. Notably, the Zacks Consensus Estimate for revenues is pegged at $765.8 million, which is within the projected range.
Full-year operating margin is expected between 28% and 30%.
Our Take
Abiomed exited the first quarter of fiscal 2019 on a mixed note, with adjusted earnings missing the Zacks Consensus Estimate and revenues beating the same. Its flagship Impella line continues to drive growth. The company received Central Drugs Standard Control Organization approval in India for Impella 2.5, Impella CP and Impella 5.0 heart pumps. Notably, Abiomed has also received CE marking approval in the European Union to market Impella CP with SmartAssist. The company has a solid global foothold, which buoys optimism.
On the flip side, a decline in gross margin due to unfavorable product and geographic mix raises concern. Intense competition in the niche markets is likely to mar prospects over the long haul.
Abiomed, carrying a Zacks Rank #2 (Buy), has significant international presence that exposes it to fluctuations in currency exchange rates. The company is likely to face the brunt of price hikes in the days to come.
Upcoming Releases
Other stocks in the broader medical space slated to release results are Insulet Corporation (PODD - Free Report) , Wright Medical Group N.V. and Illumina, Inc (ILMN - Free Report) .
Insulet is expected to release second-quarter fiscal 2018 results on Aug 2. The Zacks Consensus Estimate is pegged at a loss of 13 cents and the same for revenues is at $132.9 million. The stock carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Wright Medical is expected to release second-quarter 2018 results on Aug 8. The Zacks Consensus Estimate for the top line is pegged at $197.1 million, showing an improvement of 9.7% year over year. The stock sports a Zacks Rank of 1.
Illumina is slated to release second-quarter 2018 results on Jul 30. The Zacks Consensus Estimate for the bottom line is pegged at $1.11 and the same for revenues is at $787.7 million. The company is a Zacks #1 Ranked player.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Abiomed (ABMD) Lags Q1 Earnings Estimates, Raises '19 View
Abiomed, Inc. reported first-quarter fiscal 2019 earnings per share of 78 cents, which missed the Zacks Consensus Estimate of 80 cents. Adjusted earnings surged 73.3% from the year-ago quarter’s tally.
Revenues in the reported quarter came in at $180 million, beating the Zacks Consensus Estimate of $171.9 million. Revenues also increased 35.9% from the prior-year quarter’s figure.
Q1 in Detail
Geographic Analysis
Outside the United States, revenues totaled $22 million, up 75% year over year, with Europe being the key catalyst. European revenues rallied 53%, with German revenues up 42% year over year.
In the first quarter, Impella contributed $2.6 million in revenues in Japan. The company treated patients in Hong Kong, Australia, Singapore, Israel and most recently in India.
ABIOMED, Inc. Price, Consensus and EPS Surprise
ABIOMED, Inc. Price, Consensus and EPS Surprise | ABIOMED, Inc. Quote
Impella Sustains Momentum
U.S. Impella revenues rose 32% to $152 million on a year-over-year basis. This was driven by a 30% increase in patient utilization. U.S. reorder revenueswere$145 million in the quarter under discussion.
In the United States, the Impella 2.5 and the Impella CP have been placed at roughly 1,200 sites. Additionally, the Impella 5.0 and the Impella RP have been installed at 540 and 320 sites, respectively.
Impella adoption in the Protected PCI and cardiogenic shock indications grew 24% and 37%, respectively, on a year-over-year basis.
Margin Trends
In the quarter under review, gross margin was 82.9%, down 600 basis points (bps) year over year. Per management, the downside was mainly caused by product and geographic mix as well as incremental manufacturing investments to support future growth initiatives.
Research & Development costs in the quarter were $21.2 million, up 25.6% year over year.
Operating income in the quarter grossed $46.7 million, up 41.3% on a year-over-year basis. Operating margin was 25.8%, expanding 80 bps year over year.
FY19 Outlook
The company raised guidance for fiscal 2019.
For fiscal 2019, the company expects total revenues in the range of $755-$770 million, up from the previous guidance of $740-$770 million.
This reflects an increase of 27-30% over the previous fiscal. Notably, the Zacks Consensus Estimate for revenues is pegged at $765.8 million, which is within the projected range.
Full-year operating margin is expected between 28% and 30%.
Our Take
Abiomed exited the first quarter of fiscal 2019 on a mixed note, with adjusted earnings missing the Zacks Consensus Estimate and revenues beating the same. Its flagship Impella line continues to drive growth. The company received Central Drugs Standard Control Organization approval in India for Impella 2.5, Impella CP and Impella 5.0 heart pumps. Notably, Abiomed has also received CE marking approval in the European Union to market Impella CP with SmartAssist. The company has a solid global foothold, which buoys optimism.
On the flip side, a decline in gross margin due to unfavorable product and geographic mix raises concern. Intense competition in the niche markets is likely to mar prospects over the long haul.
Abiomed, carrying a Zacks Rank #2 (Buy), has significant international presence that exposes it to fluctuations in currency exchange rates. The company is likely to face the brunt of price hikes in the days to come.
Upcoming Releases
Other stocks in the broader medical space slated to release results are Insulet Corporation (PODD - Free Report) , Wright Medical Group N.V. and Illumina, Inc (ILMN - Free Report) .
Insulet is expected to release second-quarter fiscal 2018 results on Aug 2. The Zacks Consensus Estimate is pegged at a loss of 13 cents and the same for revenues is at $132.9 million. The stock carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Wright Medical is expected to release second-quarter 2018 results on Aug 8. The Zacks Consensus Estimate for the top line is pegged at $197.1 million, showing an improvement of 9.7% year over year. The stock sports a Zacks Rank of 1.
Illumina is slated to release second-quarter 2018 results on Jul 30. The Zacks Consensus Estimate for the bottom line is pegged at $1.11 and the same for revenues is at $787.7 million. The company is a Zacks #1 Ranked player.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>