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Here's Why You Should Invest in Abiomed (ABMD) Right Now
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Abiomed, Inc. is one of the top-performing stocks in the MedTech space. Solid show by Impella in recent times and a raised outlook for fiscal 2019 currently favor the stock.
Price Performance
In a year’s time, shares of this Zacks Rank #2 (Buy) company have rallied 50.8% compared with the industry’s 7.9% growth and the S&P 500 index’s 1% gain.
Let us take a quick look at the important factors that make Abiomed a solid pick for now.
What Makes Abiomed an Attractive Pick?
Bullish Outlook
Abiomed raised its fiscal 2019 guidance, courtesy of a solid performance in the second quarter. Notably, adjusted earnings of 81 cents per share outpaced the Zacks Consensus Estimate by 11%. The figure skyrocketed 84.1% from the year-ago quarter number.
Revenues in the quarter came in at $181.8 million, which exceeded the Zacks Consensus Estimate of $175.3 million. Revenues also improved 36.9% from the prior-year quarter.
For fiscal 2019, the company expects revenues in the band of $765-$770 million, mirroring an increase of 29-30% from fiscal 2018. This compares to the earlier guidance of $755-$770 million, showing a year-over-year rise of 27-30%.
Impella — A Consistent Performer
In the fiscal second quarter, Abiomed’s flagship Impella heart pump generated revenues of $175.3 million, up 38% year over year.
U.S. Impella heart pump revenues totaled $152.2 million in the quarter, reflecting an increase of 34% from the prior-year quarter.
Outside the United States, Impella heart pump revenues summed $23.1 million, up 67%, year over year.
Furthermore, the Impella 2.5 and CP were installed at approximately 1,250 sites in the United States by the end of the reported quarter. Additionally, the Impella 5.0 and RP installed at 559 and 368 sites, respectively.
Abiomed expects to see strong contribution from its core Impella product lines in the quarters ahead.
For the fiscal third quarter, the Zacks Consensus Estimate for earnings is pegged at 94 cents, reflecting a year-over-year growth of 34.3%. The same for revenues stands at $195.2 million, mirroring 26.7% improvement year over year.
For fiscal 2019, the Zacks Consensus Estimate for earnings is pinned at $4.97, mirroring 102.9% growth from the previous-year number. For revenues, the same is pegged at $770.5 million, indicating 29.8% rise.
Bottom Line
Abiomed has a Growth Score of A, courtesy of its solid prospects. This, in turn, reflects possibilities of an outperformance over the long haul. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 are better picks than most.
Key Picks
Other top-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , Surmodics, Inc. (SRDX - Free Report) and Veeva Systems (VEEV - Free Report) .
Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #2.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Here's Why You Should Invest in Abiomed (ABMD) Right Now
Abiomed, Inc. is one of the top-performing stocks in the MedTech space. Solid show by Impella in recent times and a raised outlook for fiscal 2019 currently favor the stock.
Price Performance
In a year’s time, shares of this Zacks Rank #2 (Buy) company have rallied 50.8% compared with the industry’s 7.9% growth and the S&P 500 index’s 1% gain.
Let us take a quick look at the important factors that make Abiomed a solid pick for now.
What Makes Abiomed an Attractive Pick?
Bullish Outlook
Abiomed raised its fiscal 2019 guidance, courtesy of a solid performance in the second quarter. Notably, adjusted earnings of 81 cents per share outpaced the Zacks Consensus Estimate by 11%. The figure skyrocketed 84.1% from the year-ago quarter number.
Revenues in the quarter came in at $181.8 million, which exceeded the Zacks Consensus Estimate of $175.3 million. Revenues also improved 36.9% from the prior-year quarter.
For fiscal 2019, the company expects revenues in the band of $765-$770 million, mirroring an increase of 29-30% from fiscal 2018. This compares to the earlier guidance of $755-$770 million, showing a year-over-year rise of 27-30%.
Impella — A Consistent Performer
In the fiscal second quarter, Abiomed’s flagship Impella heart pump generated revenues of $175.3 million, up 38% year over year.
U.S. Impella heart pump revenues totaled $152.2 million in the quarter, reflecting an increase of 34% from the prior-year quarter.
Outside the United States, Impella heart pump revenues summed $23.1 million, up 67%, year over year.
Furthermore, the Impella 2.5 and CP were installed at approximately 1,250 sites in the United States by the end of the reported quarter. Additionally, the Impella 5.0 and RP installed at 559 and 368 sites, respectively.
Abiomed expects to see strong contribution from its core Impella product lines in the quarters ahead.
ABIOMED, Inc. Price and Consensus
ABIOMED, Inc. Price and Consensus | ABIOMED, Inc. Quote
Which Way Are Estimates Treading?
For the fiscal third quarter, the Zacks Consensus Estimate for earnings is pegged at 94 cents, reflecting a year-over-year growth of 34.3%. The same for revenues stands at $195.2 million, mirroring 26.7% improvement year over year.
For fiscal 2019, the Zacks Consensus Estimate for earnings is pinned at $4.97, mirroring 102.9% growth from the previous-year number. For revenues, the same is pegged at $770.5 million, indicating 29.8% rise.
Bottom Line
Abiomed has a Growth Score of A, courtesy of its solid prospects. This, in turn, reflects possibilities of an outperformance over the long haul. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 are better picks than most.
Key Picks
Other top-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , Surmodics, Inc. (SRDX - Free Report) and Veeva Systems (VEEV - Free Report) .
Integer Holdings has an earnings growth rate of 31.2% for the next quarter and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>