Danvers, MA-based Abiomed Inc. ABMD, a leading developer, manufacturer and marketer of medical products, reported third-quarter fiscal 2017 earnings of 34 cents per share, which surpassed the Zacks Consensus Estimate by 5 cents and surged 47.8% from the year-ago quarter.
Notably, Abiomed’s streak of positive earnings surprises is noteworthy, which accounts for an average beat of 16.4% over the last four quarters. Meanwhile, the company has a Zacks Rank #3 (Hold).
Revenues increased 33.7% year over year to almost $114.7 million, outpacing the Zacks Consensus Estimate of $111 million. The year-over-year upside was supported by the robust performance of the Impella heart pump product line.
Abiomed Inc. - Earnings Surprise | FindTheBest
Stock Performance
Over the last three months, the stock added 3.6%, comparing favorably with the Zacks classified Medical Instruments sub-industry’s return of 0.9%.
Additionally, a stellar one-year return of 27.3% compared to S&P 500’s 17.3% is a significant positive in our view.
Quarter Highlights
Of the major highlights in the quarter, Abiomed launched the Impella Quality (IQ) Assurance Program, which is exclusively built for protected percutaneous coronary interventions (PCI) and cardiogenic shock patients.
Secondly, Abiomed announced the expanded U.S. FDA pre-market approval (PMA) for the usage of Impella CP heart pump. The heart pump is used for high-risk PCI in patients with severe coronary artery disease and depressed left ventricular ejection fraction (read more: ABIOMED Impella CP Gets Expanded FDA Approval, Stock Up).
Quarter in Details
Globally, Impella revenues grew a strong 35% to $109.2 million in the quarter.
U.S. Impella revenues improved 34% to $100.3 million while outside the U.S., revenues shot up 47% at cc to $8.6 million. Germany accounted for the majority of the international revenues which grew 80% 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 20 hospitals, taking the installed customer base total to 1,199 sites. The installed customer base for Impella CP heart pumps grew by 49 new U.S. hospitals, taking the total to 972.
ABIOMED, Inc. Price and EPS Surprise
ABIOMED, Inc. Price and EPS Surprise | ABIOMED, Inc. Quote
Overall operating income for the reported quarter came in at $25.4 million or 22.2% of operating margin, compared with $17.5 million or 20.4% operating margin in the prior-year quarter.
Financial Condition
Cash and cash equivalents were $22 million at third-quarter end, totaling $258.9 million as of Dec 31, 2016. Notably, management announced that the company currently has no debt.