Abiomed, Inc. delivered adjusted earnings per share (“EPS”) of $1.16 in the fourth quarter of fiscal 2022, up 8.4% year over year. The figure surpassed the Zacks Consensus Estimate by 6.4%.

GAAP EPS for the quarter was $1.31, reflecting a 5.6% surge from the year-earlier figure.

Full-year adjusted EPS was $4.44, reflecting a 15.6% increase over fiscal 2021. The metric surpassed the Zacks Consensus Estimate by 1.8%.

Revenues in Detail

Abiomed registered revenues of $269.9 million in the fiscal fourth quarter, up 11.9% year over year. The figure beat the Zacks Consensus Estimate by 1.3%.

At constant exchange rate (“CER"), revenues improved 13%.

The top line was driven by continued strength in the company’s Impella heart pump product revenues across the world.

Full-year revenues were $1.03 billion, reflecting a 21.7% improvement from the year-ago period. The metric was in line with the Zacks Consensus Estimate.

At CER, revenues for fiscal 2022 climbed 22% over fiscal 2021.

Q4 in Detail

Worldwide Impella heart pump product revenues for the quarter totaled $258 million, an increase of 12% from the prior-year quarter. At CER, revenues improved 14%.

U.S. Impella product revenues totaled $208 million, reflecting a rise of 12% year over year on the back of a 6% surge in patient utilization.

Outside the United States, Impella product revenues totaled $50 million, highlighting an increase of 13% year over year on a reported basis and 22% at CER.

Japan product revenues improved 22% year over year on a reported basis (up 33% at CER) to $14 million, while Europe product revenues for the quarter totaled $33 million, up by 9% on a reported basis and 17% at CER compared with the prior-year quarter.

Abiomed, Inc. Price, Consensus and EPS Surprise

Abiomed, Inc. price-consensus-eps-surprise-chart | Abiomed, Inc. Quote

Margin Trend

In the quarter under review, Abiomed’s gross profit rose 11.9% to $218.4 million. Gross margin expanded three basis points (bps) to 80.9%.

Selling, general & administrative expenses rose 9.2% to $109.6 million. Research and development expenses went up 36.9% year over year to $43.8 million. Adjusted operating expenses of $153.4 million increased 15.9% year over year.

Adjusted operating profit totaled $65 million, reflecting a 3.5% uptick from the prior-year quarter. Adjusted operating margin in the fiscal fourth quarter contracted 194 bps to 24.1%.

Financial Position

Abiomed exited fiscal 2022 with cash and cash equivalents of $132.8 million compared with $232.7 million at the end of fiscal 2021.

The balance sheet was debt free as of Mar 31, 2022.

Cumulative net cash flow from operating activities at the end of fiscal 2022 was $285 million compared with $274.6 million a year ago.

Guidance

Abiomed has initiated its financial outlook for fiscal 2023.

The company anticipates global revenues in the range of $1.14 billion-$1.18 billion, representing an 11-15% reported growth from the comparable reported figure of fiscal 2022. The Zacks Consensus Estimate for the same is currently pegged at $1.16 billion.

At CER, full-year global revenues are expected to reflect 13-17% growth.

Our Take

Abiomed exited the fourth quarter of fiscal 2022 with better-than-expected results. The company saw continued strength in its global Impella revenues, which is impressive. The company’s progress regarding its Impella product line, like successfully treating the first Japanese patient with the Impella 5.5 with SmartAssist device and the number of patients treated globally with the Impella 5.5 with SmartAssist surpassing 5,000 in April, raise investors’ optimism regarding the stock. The same month, Abiomed received a series of regulatory approvals, which is impressive. The company’s robust geographical performance is also promising. Gross margin expansion also bodes well.

Notably, the company continued to witness a deleveraged balance sheet in the quarter under review.

However, the contraction of adjusted operating margin does not bode well. Stiff competition and forex woes continue to bother Abiomed.

Zacks Rank and Other Key Picks

Abiomed currently carries a Zacks Rank #2 (Buy).

A few other stocks investors can consider from the broader medical space that have announced quarterly results, are Qiagen N.V. (QGEN Quick QuoteQGEN - Free Report) , UnitedHealth Group Incorporated (UNH Quick QuoteUNH - Free Report) and Centene Corporation (CNC Quick QuoteCNC - Free Report) .

Qiagen, carrying a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of 80 cents, which beat the Zacks Consensus Estimate by 12.7%. Revenues of $628.4 million outpaced the consensus mark by 6.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Qiagen has an estimated long-term growth rate of 11.5%. QGEN’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.7%.

UnitedHealth, having a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 1.9%.

UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.

Centene reported first-quarter 2022 adjusted EPS of $1.83, which surpassed the Zacks Consensus Estimate by 8.9%. First-quarter revenues of $37.2 billion outpaced the Zacks Consensus Estimate by 7.2%. It currently has a Zacks Rank #2.

Centene has an estimated long-term growth rate of 14.2%. CNC has an earnings yield of 6.8% compared with the industry’s 5.5%.