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In the last-reported quarter, the company’s earnings of $1.25 per share surpassed the Zacks Consensus Estimate by 15.7%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 10.9%.
Let’s see how things have shaped up for Abiomed prior to this announcement.
Factors to Note
During the fiscal 2023 first-quarter earnings call in August, Abiomed confirmed that Impella 5.5 with SmartAssist has been witnessing robust adoption over the past few months. The company also continued its successful controlled rollout of the Impella 5.5 in Japan during the last-reported quarter. The strong momentum is likely to have continued into the fiscal 2023 second quarter on the back of sustained adoption across the world, thereby significantly driving the overall top line.
Over the past few months, Abiomed announced results for a few studies regarding Impella, all of which have demonstrated favorable results. This raises our optimism about the stock.
Abiomed’s Impella CP is also likely to have continued to witness strong customer adoption in the to-be-reported quarter due to its design which is expected to enable physicians to provide critical hemodynamic support to coronary artery disease patients. This, in turn, is expected to enable safer percutaneous coronary intervention procedures and complete revascularization, ultimately achieving the goal of improving their ejection fraction or heart function. This, along with Impella RP with SmartAssist, is likely to have driven up the fiscal second quarter revenues.
During the fiscal first-quarter earnings call, Abiomed confirmed that it witnessed strength in Europe (driven by strong patient growth in Austria, Belgium, Italy and the Middle East, and positive benefit from sales mix) and Japan businesses. The positive benefit from the sales mix the company derived from its European business in the last-reported quarter is expected to have continued in the to-be-reported quarter as Abiomed fully transitions to Impella CP with SmartAssist. In Japan, growth in patient utilization and site openings are likely to have continued in the to-be-reported quarter. This is expected to have considerably pushed the company’s top line.
During the fiscal first-quarter earnings call, Abiomed confirmed that its Abiomed 2.0 playbook has been demonstrating solid results on the back of its technology and round-the-clock hospital support addressing the growing incidences of heart disease in multiple emergency patient populations in the catheterization (cath) lab and surgical suite. In the last-reported quarter, Abiomed supported a record number of patients in the United States and had the second-highest patient utilization in Europe and Japan. The company also remains focused on innovation and strengthening clinical evidence. This momentum is likely to have continued in the fiscal second quarter, thereby driving up the quarterly top line.
However, the company has been facing headwinds with COVID variants, hospital labor shortages, supply chain constraints and contrast media shortages for a while now. Also, Abiomed confirmed during its fiscal first quarter earnings call that the fiscal second quarter is usually a slow quarter for all cardiovascular devices due to a summertime slowdown in the cath lab. These are expected to have weighed on the company’s margin expansion in the soon-to-be-reported quarter.
The Estimate Picture
For second-quarter fiscal 2023, the Zacks Consensus Estimate of $273.3 million for Abiomed’s total revenues implies an improvement of 10.1% from the prior-year quarter’s reported figure.
Our projection of fiscal second-quarter revenue is currently pegged at $275.5 million, reflecting an uptick of 11% year over year.
The consensus estimate for earnings per share is pegged at $1.04 , indicating an improvement of 0.9% from the prior-year period’s reported number.
What Our Model Suggests
Our proven model predicts 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.
Earnings ESP: Abiomed has an Earnings ESP of +4.18%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are a few other medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
McKesson Corporation (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of 2. MCK has an estimated long-term growth rate of 10.1%.
Nevro Corp. (NVRO - Free Report) has an Earnings ESP of +10.91% and is a Zacks #2 Rank stock. NVRO has an estimated growth rate of 23.3% for 2022.
Nevro’s earnings surpassed estimates in two of the trailing four quarters, missed the same in one and matched in the other, with the average surprise being 5.7%.
GoodRx Holdings, Inc. (GDRX - Free Report) has an Earnings ESP of +21.62% and carries a Zacks Rank of 2 at present. GDRX has an estimated long-term growth rate of 16.4%.
GoodRx’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 19.4%.
Image: Bigstock
Abiomed (ABMD) to Report Q2 Earnings: What's in the Cards?
Abiomed, Inc. is scheduled to report second-quarter fiscal 2023 results on Nov 1, before market open.
In the last-reported quarter, the company’s earnings of $1.25 per share surpassed the Zacks Consensus Estimate by 15.7%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 10.9%.
Let’s see how things have shaped up for Abiomed prior to this announcement.
Factors to Note
During the fiscal 2023 first-quarter earnings call in August, Abiomed confirmed that Impella 5.5 with SmartAssist has been witnessing robust adoption over the past few months. The company also continued its successful controlled rollout of the Impella 5.5 in Japan during the last-reported quarter. The strong momentum is likely to have continued into the fiscal 2023 second quarter on the back of sustained adoption across the world, thereby significantly driving the overall top line.
Over the past few months, Abiomed announced results for a few studies regarding Impella, all of which have demonstrated favorable results. This raises our optimism about the stock.
Abiomed, Inc. Price and EPS Surprise
Abiomed, Inc. price-eps-surprise | Abiomed, Inc. Quote
Abiomed’s Impella CP is also likely to have continued to witness strong customer adoption in the to-be-reported quarter due to its design which is expected to enable physicians to provide critical hemodynamic support to coronary artery disease patients. This, in turn, is expected to enable safer percutaneous coronary intervention procedures and complete revascularization, ultimately achieving the goal of improving their ejection fraction or heart function. This, along with Impella RP with SmartAssist, is likely to have driven up the fiscal second quarter revenues.
During the fiscal first-quarter earnings call, Abiomed confirmed that it witnessed strength in Europe (driven by strong patient growth in Austria, Belgium, Italy and the Middle East, and positive benefit from sales mix) and Japan businesses. The positive benefit from the sales mix the company derived from its European business in the last-reported quarter is expected to have continued in the to-be-reported quarter as Abiomed fully transitions to Impella CP with SmartAssist. In Japan, growth in patient utilization and site openings are likely to have continued in the to-be-reported quarter. This is expected to have considerably pushed the company’s top line.
During the fiscal first-quarter earnings call, Abiomed confirmed that its Abiomed 2.0 playbook has been demonstrating solid results on the back of its technology and round-the-clock hospital support addressing the growing incidences of heart disease in multiple emergency patient populations in the catheterization (cath) lab and surgical suite. In the last-reported quarter, Abiomed supported a record number of patients in the United States and had the second-highest patient utilization in Europe and Japan. The company also remains focused on innovation and strengthening clinical evidence. This momentum is likely to have continued in the fiscal second quarter, thereby driving up the quarterly top line.
However, the company has been facing headwinds with COVID variants, hospital labor shortages, supply chain constraints and contrast media shortages for a while now. Also, Abiomed confirmed during its fiscal first quarter earnings call that the fiscal second quarter is usually a slow quarter for all cardiovascular devices due to a summertime slowdown in the cath lab. These are expected to have weighed on the company’s margin expansion in the soon-to-be-reported quarter.
The Estimate Picture
For second-quarter fiscal 2023, the Zacks Consensus Estimate of $273.3 million for Abiomed’s total revenues implies an improvement of 10.1% from the prior-year quarter’s reported figure.
Our projection of fiscal second-quarter revenue is currently pegged at $275.5 million, reflecting an uptick of 11% year over year.
The consensus estimate for earnings per share is pegged at $1.04 , indicating an improvement of 0.9% from the prior-year period’s reported number.
What Our Model Suggests
Our proven model predicts 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.
Earnings ESP: Abiomed has an Earnings ESP of +4.18%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are a few other medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
McKesson Corporation (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of 2. MCK has an estimated long-term growth rate of 10.1%.
McKesson’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 13%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nevro Corp. (NVRO - Free Report) has an Earnings ESP of +10.91% and is a Zacks #2 Rank stock. NVRO has an estimated growth rate of 23.3% for 2022.
Nevro’s earnings surpassed estimates in two of the trailing four quarters, missed the same in one and matched in the other, with the average surprise being 5.7%.
GoodRx Holdings, Inc. (GDRX - Free Report) has an Earnings ESP of +21.62% and carries a Zacks Rank of 2 at present. GDRX has an estimated long-term growth rate of 16.4%.
GoodRx’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 19.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.