It has been about a month since the last earnings report for Abiomed, Inc. . Shares have added about 7.8% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 Q4 Earnings Meet, Revenues Beat Estimates
Danvers, MA-based Abiomed, a leading developer, manufacturer and marketer of medical products, reported fourth-quarter fiscal 2017 earnings of $0.33 per share, which were in line with the Zacks Consensus Estimate. The figure also surged 37.5% from the year-ago quarter.
Revenues increased roughly 33% year over year to almost $125 million, outpacing the Zacks Consensus Estimate of $122 million. The year-over-year upside was supported by robust performance of the Impella heart pump product line.
For fiscal 2017, total revenue was $445.3 million, compared with $329.5 million in fiscal 2016 (up 35%).
Quarter Highlights
Of the major highlights, Abiomed has been gaining prominence of late, courtesy of a plethora of regulatory approvals in the fourth quarter. The company received FDA PMA approval for cardiogenic shock, Impella CP approval for high-risk PCI, IDE approval for STEMI Door to Unloading study and more.
The company strengthened its distribution base in the U.S. and Germany and increased manufacturing and training capacity in Aachen, Dnvers and Massachusetts to meet demand.
The company also declared the successful launch of the Abiomed Impella Quality Program in the quarter to improve clinical outcomes.
Quarter in Details
Globally, Impella heart pump revenues grew a strong 34% to $118.9 million in the quarter. Full-year worldwide Impella revenues totaled $423.7 million, up 37% on a year-over-year basis.
U.S. Impella revenues improved 32% to $108.2 million (driven by a 30% increase in patient utilization) while outside the U.S., revenues shot up 58% to $10.7 million. Germany accounted for the majority of the international revenues, which grew 63% 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 19 hospitals, taking the installed customer base total to 1,138 sites. The installed customer base for Impella CP heart pumps grew by 44 U.S. hospitals, reaching the total to 1016.
Overall operating income for the reported quarter came in at $29 million or 23.3% of operating margin (as a percentage of revenues), compared with $19.8 million or 21.1% in the prior-year quarter.
Gross margin in the fourth quarter was 84.6%, compared with 84.4% in the fourth quarter of fiscal 2016.
Financial Condition
Cash and cash equivalents were $18.2 million at fourth-quarter end, totaling $277 million as of Mar 31, 2017. Notably, management announced that the company currently has no debt.
Guidance
Abiomed issued guidance for fiscal 2018.
The company forecasts fiscal 2018 revenues in the range of $440 million to $445 million. This marks an increase of 25–29% from the fiscal 2016 level.
Operating margin is projected in the band of 22% to 24%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been one revision lower for the current quarter.
ABIOMED, Inc. Price and Consensus
VGM Scores
At this time, the stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is solely suitable for growth investors.
Outlook
While estimates have been moving downward, the magnitude of the revision is net zero. The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Abiomed (ABMD) Up 7.8% Since the Last Earnings Report?
It has been about a month since the last earnings report for Abiomed, Inc. . Shares have added about 7.8% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 Q4 Earnings Meet, Revenues Beat Estimates
Danvers, MA-based Abiomed, a leading developer, manufacturer and marketer of medical products, reported fourth-quarter fiscal 2017 earnings of $0.33 per share, which were in line with the Zacks Consensus Estimate. The figure also surged 37.5% from the year-ago quarter.
Revenues increased roughly 33% year over year to almost $125 million, outpacing the Zacks Consensus Estimate of $122 million. The year-over-year upside was supported by robust performance of the Impella heart pump product line.
For fiscal 2017, total revenue was $445.3 million, compared with $329.5 million in fiscal 2016 (up 35%).
Quarter Highlights
Of the major highlights, Abiomed has been gaining prominence of late, courtesy of a plethora of regulatory approvals in the fourth quarter. The company received FDA PMA approval for cardiogenic shock, Impella CP approval for high-risk PCI, IDE approval for STEMI Door to Unloading study and more.
The company strengthened its distribution base in the U.S. and Germany and increased manufacturing and training capacity in Aachen, Dnvers and Massachusetts to meet demand.
The company also declared the successful launch of the Abiomed Impella Quality Program in the quarter to improve clinical outcomes.
Quarter in Details
Globally, Impella heart pump revenues grew a strong 34% to $118.9 million in the quarter. Full-year worldwide Impella revenues totaled $423.7 million, up 37% on a year-over-year basis.
U.S. Impella revenues improved 32% to $108.2 million (driven by a 30% increase in patient utilization) while outside the U.S., revenues shot up 58% to $10.7 million. Germany accounted for the majority of the international revenues, which grew 63% 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 19 hospitals, taking the installed customer base total to 1,138 sites. The installed customer base for Impella CP heart pumps grew by 44 U.S. hospitals, reaching the total to 1016.
Overall operating income for the reported quarter came in at $29 million or 23.3% of operating margin (as a percentage of revenues), compared with $19.8 million or 21.1% in the prior-year quarter.
Gross margin in the fourth quarter was 84.6%, compared with 84.4% in the fourth quarter of fiscal 2016.
Financial Condition
Cash and cash equivalents were $18.2 million at fourth-quarter end, totaling $277 million as of Mar 31, 2017. Notably, management announced that the company currently has no debt.
Guidance
Abiomed issued guidance for fiscal 2018.
The company forecasts fiscal 2018 revenues in the range of $440 million to $445 million. This marks an increase of 25–29% from the fiscal 2016 level.
Operating margin is projected in the band of 22% to 24%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been one revision lower for the current quarter.
ABIOMED, Inc. Price and Consensus
ABIOMED, Inc. Price and Consensus | ABIOMED, Inc. Quote
VGM Scores
At this time, the stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is solely suitable for growth investors.
Outlook
While estimates have been moving downward, the magnitude of the revision is net zero. The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.