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Abiomed (ABMD) to Report Q1 Earnings: What's in the Cards?

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Abiomed, Inc. (ABMD - Free Report) is scheduled to report first-quarter fiscal 2022 results on Aug 5, before market opens.

In the last-reported quarter, the company’s earnings of $1.24 per share surpassed the Zacks Consensus Estimate by 12.7%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 51.69%, on average.

Let’s see how things have shaped up for Abiomed prior to this announcement.

Factors to Note

Abiomed had initiated the accelerated rollout of Impella Connect (its remote monitoring capability) in the fiscal 2021 fourth quarter. Interestingly, by the end of fiscal 2021, the Impella Connect was live at nearly 1,000 hospitals in the United States. Similar to the last-reported quarter, the company is expected to have continued to gain from the robust adoption of Impella Connect.

Abiomed’s revenues in the fiscal 2022 first quarter are also expected to have benefited from sustained momentum of its Impella 5.5 with SmartAssist over the past few months. Favorable physician feedback for the company’s Breethe OXY-1 System is also expected to be a key catalyst for Abiomed’s quarterly revenues. Strong momentum of the Impella product line, which was seen in the sequentially last-reported quarter, is expected to have continued through the fiscal 2022 first quarter as well, on the back of continued robust customer adoption.

ABIOMED, Inc. Price and EPS Surprise

ABIOMED, Inc. Price and EPS Surprise

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

Other notable offerings include the company’s Impella RP, Impella 2.5 and Impella CP heart pump, which are currently in high demand, and are likely to have aided the company’s performance in the to-be-reported quarter.

In April 2021, management announced final outcomes of the physician-led National Cardiogenic Shock Initiative Study, which demonstrated the benefits of early cardiac unloading with Impella. This favorable study outcome might have driven client demand for Impella.

In March, Abiomed unveiled the single-access procedure with Impella CP introducer sheaths for the treatment of heart disease in Europe.
These developments are likely to have contributed to the company’s fiscal first-quarter performance.

However, the company has been facing high pricing pressure due to intensifying competition in the key markets for a while now. This is expected to have weighed on the company’s margin expansion.

The Estimate Picture

For first-quarter fiscal 2022, the Zacks Consensus Estimate of $243.8 million for total revenues implies an improvement of 47.9% from the prior-year quarter’s reported figure.

The consensus estimate for earnings per share is pegged at $1.06, indicating a surge of 82.8% from the prior-year period’s reported number.

What Our Model Suggests

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here as you can see:

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: The company currently carries a Zacks Rank #4 (Sell).

Stocks Worth a Look

Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.

Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Illumina, Inc. (ILMN - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank of 2, at present.

Ironwood Pharmaceuticals, Inc. (IRWD - Free Report) has an Earnings ESP of +11.11% and is a Zacks #2 Ranked stock.