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Abiomed’s Impella Pumps Up Q4 Earnings, But Hot Stock Slows

Cardiac device maker Abiomed ( ABMD ) beat quarterly estimates and guided the current fiscal year above consensus Tuesday, but its elevated stock still slipped in trading. For its fiscal Q4 ended March 31, Abiomed’s sales totaled $94 million, up 39% from the year-earlier quarter and beating analysts’ consensus by about $3 million, according to Thomson Reuters. Earnings fell 14% to 24 cents a share but still beat consensus by 9 cents. The earnings decline in both Q3 and Q4 were due to tough year-over-year comparisons, but analysts expect growth to return in the current quarter and accelerate thereafter. Abiomed supported this with its guidance for the current fiscal year: $430 million to $445 million in sales vs. last year’s $329.5 million, beating consensus of $421 million. It does not provide EPS guidance but said operating margin should be 18% to 20%, which would be flat to slightly below last year’s. The margin guidance might have been a bit below expectations. Leerink analyst Danielle Antalffy had estimated it at 20%, and Thomson Reuters’ consensus for net income was also about 20% of revenue. Abiomed stock was down 2% in midday trading on the stock market today , near 97. The stock had been trading strong lately, with a consistent IBD Relative Strength Rating in the 90s. Shares are up more than 40% since touching a nine-month low in early February. Antalffy still was positive on Abiomed’s report, noting good adoption trends for the company’s Impella heart pump in the percutaneous coronary intervention (PCI) market. “We believe this adoption momentum is under-appreciated by the Street — particularly given what we view as a possibly open-ended market opportunity in protected PCI as previously untreated patients are now increasingly treated — paving the way for consistent “beat and raise” quarters over the near-to-medium term,” Antalffy wrote in her research note.

Abiomed, Boston Scientific Move Opposite Ways On Quarterly Reports

Medical device maker Abiomed ( ABMD ) popped in early trading after it beat quarterly estimates and raised guidance Thursday, while its larger counterpart Boston Scientific ( BSX ) was falling after a more mixed report. Abiomed’s earnings for its fiscal Q3 ended Dec. 31 totaled 23 cents a share, down 23% from the year-earlier quarter but well ahead of analysts’ consensus of 15 cents as reported by Thomson Reuters. Sales rose 38% to $85.8 million, about $5 million above consensus. Abiomed raised its revenue guidance for the full fiscal 2016 to $326 million, up from a previous range of $305 million to $315 million. It said that sales in the current quarter should be $90 million, above Wall Street’s estimate of $85.1 million and up from $62.6 million in last year’s fourth quarter. The company didn’t guide earnings, but it did say that gross profit margin should be higher than its previous guidance of 15% to 17%. Abiomed stock was up 5% in morning trading on the stock market today , near 89. The news wasn’t a total surprise, since Abiomed issued preliminary Q3 sales last month that matched the current report. Leerink analyst Danielle Antalffy wrote that the EPS and guidance numbers brought further upside, supporting strong uptake of Abiomed’s Impella heart pump. “In the U.S., Abiomed clearly continues to drive what we believe is sustainable adoption momentum that should continue to ramp with the recent Impella 2.5 PMA (premarket approval), as the company can more aggressively market to physicians than before,” Antalffy wrote in a research note. “This is further supplemented by the Impella RP and upcoming late-calendar-year 2016 Japan regulatory and reimbursement approval.” Boston Scientific Revenue Falls Short Boston Scientific stock was down 4% Thursday morning, near 17, after the company reported Q4 sales of $1.98 billion, up 5% from the prior year’s Q4 but about $16 million below consensus. Profit rose 18% to 26 cents a share, a penny over the Street. Boston Scientific said that sales in the current quarter should be $1.89 billion to $1.94 billion, somewhat on the low side of analysts’ $1.93 billion consensus, though up from $1.77 billion last year. It said earnings will be 23 to 25 cents a share, in line with consensus and up from 21 cents last year. For the year, the company’s sales guidance of $7.9 billion to $8.1 billion bracketed consensus, while EPS was on the high side at $1.03 to $1.07. “Gross margins (in Q4) came in slightly above our expectations, but operating expenses came in well above our estimate driven by higher sales, general and administrative and R&D expenses, that were offset by tax (which we estimate contributed 1 to 2 cents),” Evercore ISI analyst Vijay Kumar wrote in an email to clients. “Overall, in the context of a tough health care tape and concerns over slowdown in emerging markets and ICD (implantable cardioverter defibrillator) share losses, we view today’s print and guidance as solid.” Image provided by Shutterstock .

Abiomed Stock Plunges On Guidance, Despite Q2 Beat

Cardiac device maker Abiomed (ABMD) beat fiscal Q2 estimates Thursday, but its implied second-half guidance disappointed the Street so much that shares tumbled nearly 30%. Abiomed’s earnings for the quarter that ended Sept. 30 jumped 89% over the year-earlier quarter to 17 cents a share, beating analysts’ consensus by 2 cents, according to Thomson Reuters. Sales climbed 47% to $76.4 million, about $2 million above the Street’s average estimate.