A month has gone by since the last earnings report for ABIOMED, Inc. . Shares have added about 10.4% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to their next earnings release, or is the stock due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Abiomed Beats Earnings & Revenue Estimates in Q3
Danvers, MA-based Abiomed Inc. , a leading developer, manufacturer and marketer of medical products, reported third-quarter fiscal 2017 earnings of $0.34 per share, which surpassed the Zacks Consensus Estimate by $0.05 and surged 47.8% from the year-ago quarter.
Revenues increased 33.7% year over year to almost $114.7 million, outpacing the Zacks Consensus Estimate of $111 million. The year-over-year upside was supported by the robust performance of the Impella heart pump product line.
Quarter Highlights
Of the major highlights in the quarter, Abiomed launched the Impella Quality (IQ) Assurance Program, which is exclusively built for protected percutaneous coronary interventions (PCI) and cardiogenic shock patients.
Secondly, Abiomed announced the expanded U.S. FDA pre-market approval (PMA) for the usage of Impella CP heart pump. The heart pump is used for high-risk PCI in patients with severe coronary artery disease and depressed left ventricular ejection fraction.
Quarter in Details
Globally, Impella revenues grew a strong 35% to $109.2 million in the quarter.
U.S. Impella revenues improved 34% to $100.3 million while outside the U.S., revenues shot up 47% at cc to $8.6 million. Germany accounted for the majority of the international revenues which grew 80% on a year-over-year basis.
During the reported quarter, the installed base for Impella 2.5 heart pumps in the U.S. grew by 20 hospitals, taking the installed customer base total to 1,199 sites. The installed customer base for Impella CP heart pumps grew by 49 new U.S. hospitals, taking the total to 972.
Overall operating income for the reported quarter came in at $25.4 million or 22.2% of operating margin, compared with $17.5 million or 20.4% operating margin in the prior-year quarter.
Financial Condition
Cash and cash equivalents were $22 million at third-quarter end, totaling $258.9 million as of Dec 31, 2016. Notably, management announced that the company currently has no debt.
Guidance
Abiomed forecasts fiscal 2017 revenues in the range of $440 million to $445 million compared to the previously issued guidance of $435 million to $445 million. This marks an increase of 34–35% from the fiscal 2016 level. Operating margin is projected in the band of 18% to 20%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been four revisions lower for the current quarter.
VGM Scores
At this time, ABIOMED's stock has a strong Growth score of 'A', and its Momentum Score is 'B'. The stock was allocated also a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregte VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable for growth and momentum investors based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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ABIOMED (ABMD) Up 10.4% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for ABIOMED, Inc. . Shares have added about 10.4% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to their next earnings release, or is the stock due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Abiomed Beats Earnings & Revenue Estimates in Q3
Danvers, MA-based Abiomed Inc. , a leading developer, manufacturer and marketer of medical products, reported third-quarter fiscal 2017 earnings of $0.34 per share, which surpassed the Zacks Consensus Estimate by $0.05 and surged 47.8% from the year-ago quarter.
Revenues increased 33.7% year over year to almost $114.7 million, outpacing the Zacks Consensus Estimate of $111 million. The year-over-year upside was supported by the robust performance of the Impella heart pump product line.
Quarter Highlights
Of the major highlights in the quarter, Abiomed launched the Impella Quality (IQ) Assurance Program, which is exclusively built for protected percutaneous coronary interventions (PCI) and cardiogenic shock patients.
Secondly, Abiomed announced the expanded U.S. FDA pre-market approval (PMA) for the usage of Impella CP heart pump. The heart pump is used for high-risk PCI in patients with severe coronary artery disease and depressed left ventricular ejection fraction.
Quarter in Details
Globally, Impella revenues grew a strong 35% to $109.2 million in the quarter.
U.S. Impella revenues improved 34% to $100.3 million while outside the U.S., revenues shot up 47% at cc to $8.6 million. Germany accounted for the majority of the international revenues which grew 80% on a year-over-year basis.
During the reported quarter, the installed base for Impella 2.5 heart pumps in the U.S. grew by 20 hospitals, taking the installed customer base total to 1,199 sites. The installed customer base for Impella CP heart pumps grew by 49 new U.S. hospitals, taking the total to 972.
Overall operating income for the reported quarter came in at $25.4 million or 22.2% of operating margin, compared with $17.5 million or 20.4% operating margin in the prior-year quarter.
Financial Condition
Cash and cash equivalents were $22 million at third-quarter end, totaling $258.9 million as of Dec 31, 2016. Notably, management announced that the company currently has no debt.
Guidance
Abiomed forecasts fiscal 2017 revenues in the range of $440 million to $445 million compared to the previously issued guidance of $435 million to $445 million. This marks an increase of 34–35% from the fiscal 2016 level. Operating margin is projected in the band of 18% to 20%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been four revisions lower for the current quarter.
ABIOMED, Inc. Price and Consensus
ABIOMED, Inc. Price and Consensus | ABIOMED, Inc. Quote
VGM Scores
At this time, ABIOMED's stock has a strong Growth score of 'A', and its Momentum Score is 'B'. The stock was allocated also a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregte VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable for growth and momentum investors based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.