ABIOMED, Inc. is scheduled to release third-quarter fiscal 2020 results on Feb 6, before market opens. We believe that despite the persistent foreign currency woes, solid Impella product line prospects are expected to reflect on the results.

 

ABIOMED delivered an earnings surprise of 10.8% in the last reported quarter, the trailing four-quarter earnings surprise being a positive 3.7%, on average.

 

 

The Zacks Consensus Estimate for ABIOMED’s third-quarter earnings per share is pegged at $1.09, indicating a year-over-year improvement of 12.4%.

 

Let’s see how things are shaping up prior to the earnings release.

 

ABIOMED’s flagship product line, Impella, has consistently boosted the company’s top line. Impella, a support system of percutaneous, catheter-based devices offering hemodynamic support to the heart, is expected to have driven fiscal third-quarter earnings as well.

 

Notably, the treatment success rates of ABIOMED’s SmartAssist, Impella Connect, IQ Impella Quality Assurance Database and Impella 5.0 is expected to reflect in the quarterly results.

 

Apart from these, the recent post-approval studies for Impella 5.5 have received a nod from the FDA, which signifies increasing adoption of the device. Additionally, recent FDA approval of the Impella 5.5 with SmartAssist and plans to launch the same in the United States also buoy optimism. Moreover, Impella 2.5 and CP with SmartAssist are currently much in demand.

 

Notably, ABIOMED’s preliminary results project U.S. patient usage growth of 16% year over year and international growth of 24%. U.S. revenues are expected to have grown 8% year over year to $185.6 million. Internationally, revenues are estimated at $36.0 million, suggesting a 29% year-over-year rise on strength in Germany and Japan.

 

Thus, quarterly revenues are anticipated at $221.6 million, suggesting a 10% year-over-year rise but the metric is expected to lag the consensus mark.

 

Resultantly, the company slashed its fiscal 2020 revenue guidance.

 

Revenues are now expected within $846-$877 million, indicating an increase of 10-14% year over year. This compares to the earlier projected range of $885-$925 million, calling for a 15-20% rise year over year.

 

However, ABIOMED faces stiff competition in the global MedTech space and fluctuations in currency exchange rates.

 

 

Per our proven model, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to deliver a positive earnings surprise. That 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 carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

 

Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.

 

DexCom (DXCM Quick QuoteDXCM - Free Report) has an Earnings ESP of +17.07% and a Zacks Rank #2.

 

AmerisourceBergen has an Earnings ESP of +0.82% and a Zacks Rank #3.

 

HealthEquity (HQY Quick QuoteHQY - Free Report) has an Earnings ESP of +18.56% and a Zacks Rank #2.

 

 

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

 

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.