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ABIOMED (ABMD) to Report Q4 Earnings: What's in the Cards?

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ABIOMED, Inc. is scheduled to release fourth-quarter fiscal 2020 results on Apr 30, before the opening bell. The company delivered a positive earnings surprise of 1.8% in the last reported quarter. It has a trailing four-quarter positive earnings surprise of 3.4%, on average.

Q4 Estimates Picture

The Zacks Consensus Estimate for ABIOMED’s fiscal fourth-quarter revenues is pegged at $214.6million, suggesting growth of 3.6% from the year-ago quarter. The consensus estimates for earnings stands at 97 cents per share, indicating a decline of 9.4% from the year-ago reported figure.

Factors to Drive Q4 Results

ABIOMED’s flagship product line, Impella, has been consistently boosting 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 fourth-quarter performance.

Notably, the treatment success rates of ABIOMED’s SmartAssist, Impella Connect, IQ Impella Quality Assurance Database and Impella 5.0 is expected to get reflected in the company’s performance in the to-be-reported quarter.

ABIOMED, Inc. Price and EPS Surprise

 

ABIOMED, Inc. Price and EPS Surprise

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

However, with the coronavirus outbreak intensifying since late February, elective procedures have been impacted. This, in turn, is likely to have weighed on the company’s fiscal fourth-quarter performance.

Nonetheless, the post-approval studies for Impella 5.5 have received a nod from the FDA, which signifies increasing adoption of the device. Additionally, the FDA approval of the Impella 5.5 with SmartAssist and the launch of the same at leading heart hospitals in the United States during the fiscal third quarter is likely to have instilled optimism in the stock. Moreover, Impella 2.5 and CP with SmartAssist are currently much in demand. These are likely to have impacted the performance in the quarter to be reported.

ABIOMED is likely to have witnessed growth for the first two months of the fiscal fourth quarter in U.S Impella product revenues. Higher patient usage of the Impella heart pumps is likely to have contributed to the improvement.

However, it is important to note here that with the coronavirus outbreak, interventional cardiology procedures are likely to have taken a hit (since late February). This, is turn, might have weighed on the company’s Impella product line in the yet-to-be-reported quarter.

Moreover, the company has been facing rising pricing pressure due to growing competition in key markets. This, in turn, is likely to have limited the company’s margin expansion capabilities.

Earnings Whispers

Per our proven model, a 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. This is not the case here as you will see below.

Earnings ESP: ABIOMED has an Earnings ESP of -6.35%. 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 #4 (Sell).

Stocks Worth a Look

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

Chemed Corporation (CHE - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Baxter International Inc. (BAX - Free Report) has an Earnings ESP of +0.31% and a Zacks Rank of 3.

DexCom, Inc. (DXCM - Free Report) has an Earnings ESP of +143.90% and a Zacks Rank of 2.

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