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ABIOMED (ABMD) Q4 Earnings Beat Estimates, Revenues Miss
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ABIOMED, Inc. reported fourth-quarter fiscal 2020 adjusted earnings per share (EPS) of $1 which beat the Zacks Consensus Estimate of 96 cents. The figure declined 6.5% year over year.
Adjusted EPS excluded the impact of unrealized loss on investment in Shockwave worth 30 cents.
For fiscal 2020, the company's adjusted EPS came in at $4.44, down 12.9% from the year-ago period. The figure also missed the Zacks Consensus Estimate of $4.70.
The full-year adjusted EPS excluded the impact of unrealized loss on investment in Shockwave worth a penny.
Revenues in Detail
In the fiscal fourth quarter, the company’s revenues came in at $206.7 million, which lagged the Zacks Consensus Estimate of $214.6 million by 2.6%. The metric also fell 0.2% from the prior-year quarter.
For fiscal 2020, total revenues came in at $840.9 million, which also missed the consensus estimate of $846.3 million. However, the figure climbed 9.3% year over year.
U.S. Impella product revenues totaled $164 million, showing a decline of 3% year over year. Per management, U.S. patient usage of the Impella heart pumps fell 5% in the quarter, mainly due to the coronavirus pandemic.
Outside the United States, Impella product revenues totaled $33.4 million, highlighting an increase of 12% year over year. Japan revenues were $8.4 million in the quarter, improving 55% year over year.
Margin Trend
In the quarter under review, gross profit totaled $167.3 million, down 2.9% year over year. Gross margin in the quarter was 80.9% of net revenues, down 222 basis points (bps) year over year.
Operating income totaled $58.1 million, down 11.2% on a year-over-year basis. Operating margin was 28.1%, down 349 bps.
Financial Condition
The company exited fiscal 2020 with $192.3 million of cash and cash equivalents, compared with $121 million of the same at the end of fiscal 2019. The balance sheet was also debt free as of Mar 31, 2020.
Fiscal 2021 Guidance
Due to uncertainty of the extent and duration of the COVID-19 pandemic and the timing of economic recovery, the company will not be issuing full-year revenue or operating margin outlook at this time.
Summing Up
ABIOMED exited fiscal 2020 on a mixed note. The company’s flagship Impella saw decline in revenues within United States. Contraction in both the margins is also worrying. However, Impella revenues outside the United States, especially Japan, surged in the quarter. Recent product launches and regulatory approvals continue to buoy optimism. Also, the company’s balance sheet is debt-free.
The Zacks Consensus Estimate for Pacific Biosciences’ first-quarter 2020 revenues is pegged at $20.1 million, suggesting a year-over-year improvement of 22.3%. The same for loss stands at 15 cents, indicating year-over-year improvement of 25%.
The Zacks Consensus Estimate for Aphria’s fourth-quarter fiscal 2020 revenues is $100.3 million, implying a 4.4% increase from the year-earlier reported figure.
The Zacks Consensus Estimate for Exact Sciences’ first-quarter fiscal 2020 revenues is pegged at $349.2 million, suggesting year-over-year improvement of 115.5%. The same for loss stands at 60 cents indicating growth of 9.1% from the year-ago reported figure.
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ABIOMED (ABMD) Q4 Earnings Beat Estimates, Revenues Miss
ABIOMED, Inc. reported fourth-quarter fiscal 2020 adjusted earnings per share (EPS) of $1 which beat the Zacks Consensus Estimate of 96 cents. The figure declined 6.5% year over year.
Adjusted EPS excluded the impact of unrealized loss on investment in Shockwave worth 30 cents.
For fiscal 2020, the company's adjusted EPS came in at $4.44, down 12.9% from the year-ago period. The figure also missed the Zacks Consensus Estimate of $4.70.
The full-year adjusted EPS excluded the impact of unrealized loss on investment in Shockwave worth a penny.
Revenues in Detail
In the fiscal fourth quarter, the company’s revenues came in at $206.7 million, which lagged the Zacks Consensus Estimate of $214.6 million by 2.6%. The metric also fell 0.2% from the prior-year quarter.
For fiscal 2020, total revenues came in at $840.9 million, which also missed the consensus estimate of $846.3 million. However, the figure climbed 9.3% year over year.
ABIOMED, Inc. Price, Consensus and EPS Surprise
ABIOMED, Inc. price-consensus-eps-surprise-chart | ABIOMED, Inc. Quote
Q4 in Detail
U.S. Impella product revenues totaled $164 million, showing a decline of 3% year over year. Per management, U.S. patient usage of the Impella heart pumps fell 5% in the quarter, mainly due to the coronavirus pandemic.
Outside the United States, Impella product revenues totaled $33.4 million, highlighting an increase of 12% year over year. Japan revenues were $8.4 million in the quarter, improving 55% year over year.
Margin Trend
In the quarter under review, gross profit totaled $167.3 million, down 2.9% year over year. Gross margin in the quarter was 80.9% of net revenues, down 222 basis points (bps) year over year.
Operating income totaled $58.1 million, down 11.2% on a year-over-year basis. Operating margin was 28.1%, down 349 bps.
Financial Condition
The company exited fiscal 2020 with $192.3 million of cash and cash equivalents, compared with $121 million of the same at the end of fiscal 2019. The balance sheet was also debt free as of Mar 31, 2020.
Fiscal 2021 Guidance
Due to uncertainty of the extent and duration of the COVID-19 pandemic and the timing of economic recovery, the company will not be issuing full-year revenue or operating margin outlook at this time.
Summing Up
ABIOMED exited fiscal 2020 on a mixed note. The company’s flagship Impella saw decline in revenues within United States. Contraction in both the margins is also worrying. However, Impella revenues outside the United States, especially Japan, surged in the quarter. Recent product launches and regulatory approvals continue to buoy optimism. Also, the company’s balance sheet is debt-free.
Zacks Rank and Key Picks
ABIOMED currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are Pacific Biosciences of California, Inc. (PACB - Free Report) , Aphria and Exact Sciences (EXAS - Free Report) , each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Pacific Biosciences’ first-quarter 2020 revenues is pegged at $20.1 million, suggesting a year-over-year improvement of 22.3%. The same for loss stands at 15 cents, indicating year-over-year improvement of 25%.
The Zacks Consensus Estimate for Aphria’s fourth-quarter fiscal 2020 revenues is $100.3 million, implying a 4.4% increase from the year-earlier reported figure.
The Zacks Consensus Estimate for Exact Sciences’ first-quarter fiscal 2020 revenues is pegged at $349.2 million, suggesting year-over-year improvement of 115.5%. The same for loss stands at 60 cents indicating growth of 9.1% from the year-ago reported figure.
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