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ABIOMED (ABMD) to Report Q3 Earnings: What's in the Cards?

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ABIOMED, Inc.  is scheduled to release third-quarter fiscal 2021 results on Jan 28, before the opening bell. The company delivered an earnings surprise of 16.1% in the last reported quarter. Its earnings surpassed estimates in each of the trailing four quarters, the average being 49.6%.

Q3 Estimate Picture

The Zacks Consensus Estimate for ABIOMED’s revenues for the fiscal third quarter is pegged at $226.4 million, suggesting 2.2% growth from the year-ago quarter’s reported figure. The consensus estimate for earnings stands at $1.15 per share, indicating 3.6% growth from the year-ago period’s reported number.

Factors Likely at Play

ABIOMED is likely to have witnessed a fall in U.S. Impella product revenues during the fiscal third quarter due to a drop in U.S. patient usage of Impella heart pumps amid the COVID-19 pandemic.

Nonetheless, the treatment success rates of ABIOMED’s SmartAssist, Impella Connect, IQ Impella Quality Assurance Database and Impella 5.0 are expected to have contributed to the quarterly results. Strong momentum of the Impella product line seen in the fiscal second quarter, both in Europe and Japan, is expected to have continued through the fiscal third quarter as well.

The full commercial launch of Impella 5.5 in May 2020 is expected to have driven the company’s performance in the to-be-reported quarter. Moreover, Impella 2.5 and CP with SmartAssist are currently in high demand, which are likely to have aided the company’s performance in the quarter to be reported.

In the fiscal second quarter, Impella also received a EUA nod from the FDA for ECPELLA and Impella RP to handle COVID-related complications. In October, the company announced a 510(k) clearance of ABIOMED’s Breethe OXY-1 System, which is being rolled out via a controlled introduction at select hospitals in the United States.

In the same month, management announced a successful first-in-human series of two patients in the U.S. FDA early feasibility study on Impella ECP.

In December 2020, the company declared its success in treating the first two patients in the world with the help of its Breethe OXY-1 System, a compact cardiopulmonary bypass system. Notably, the Breethe system expedited early mobilization and physical rehabilitation, which are of paramount importance to patient recovery.

These breakthroughs are likely to have boosted the company’s results in the fiscal third quarter.

 

ABIOMED, Inc. Price and EPS Surprise

ABIOMED, Inc. Price and EPS Surprise

 

ABIOMED, Inc. price-eps-surprise | ABIOMED, Inc. Quote


 

However, it is significant to note that the fiscal third quarter continued bearing the brunt of the pandemic, hurting interventional cardiology procedures. This, is turn, might have weighed on the company’s Impella product line in the soon-to-be-reported quarter.

Moreover, the company has been facing high pricing pressure due to intensifying competition in the key markets. This, in turn, is expected to have limited the company’s margin expansion.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for ABIOMED this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here as you will see below.

Earnings ESP: ABIOMED has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ABIOMED currently carries a Zacks Rank #3.

Stocks Worth a Look

Here are some medical stocks worth considering with the right combination of elements to beat on earnings this reporting cycle.

AmerisourceBergen Corporation  has an Earnings ESP of +2.58% and a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +4.80% and is Zacks #3 Ranked, currently.

Ecolab Inc. (ECL - Free Report) has an Earnings ESP of +0.08% and is presently a #3 Ranked player.

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