) fourth-quarter fiscal 2013 earnings per share (EPS) of 9 cents
beat the Zacks Consensus Estimate of 7 cents by 28.6%. The
Massachusetts.-based company registered a solid profit of $3.7
million, up 42.3% year over year.
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For fiscal 2013, the leading cardiac assist devices maker posted
an EPS of 37 cents, which surpassed the Zacks Consensus Estimate
of 34 cents. Profit jumped ten times year over year to $15
million on the back of excellent operating performance as well as
strong end-market demand for percutaneous hemodynamic support.
Revenues for the fourth quarter climbed 17% year over year to
$43.7 million, beating the Zacks Consensus Estimate of $42
million. This marked the 14th straight quarter, in which Abiomed
recorded year-over-year double-digit growth. Growth was led by
record sales of the Impella heart pumps and patient utilization
of the Impella device in the quarter.
Globally, Impella sales soared 22% year over year to $39.3
million in the fiscal fourth quarter. U.S. Impella sales grew 22%
to $36.5 million. Abiomed opened 30 new U.S. sites for Impella
2.5 in the quarter to end with a total of 748 customer sites.
For fiscal 2013, the company's revenues of $158.1 million also
exceeded the Zacks Consensus Estimate of $156 million by 1.3%.
Revenues grew 25% year over year, which was above the company's
guidance of 23%-24% growth for fiscal 2013 in the range of $155 -
Gross margin declined to 79.8% from 81.8% a year ago. However,
operating margin was 9.5% compared with 7.9% in the prior-year
Selling, general and administrative expenses were at 54.7% of
sales versus 53.6% in the year-ago quarter. Research and
Development expenses, as a percentage of sales, fell to 15.6%
Abiomed exited the quarter with cash, cash equivalents and
short-term marketable securities of $88.1 million, 14.1% higher
than the previous year. The company had no debt in the quarter.
The company repurchased 0.3 million shares in the quarter for
$4.4 million to complete its repurchase program to buyback up to
$15 million of its common stock.
Abiomed provided revenue guidance for fiscal 2014. Abiomed
forecasts revenues to grow 14%-17% to $180 - $185 million. Global
Impella sales are expected to increase by 20%.
Moreover, operating margin is forecast in the band of 7% and 8%,
including legal expenses of $6 million-$8 million associated with
the Department of Justice and shareholder matters.
In Feb 2013, Abiomed announced that the Food and Drug
Administration (FDA) has closed out a warning letter issued in
Jun 2011 concerning irregular marketing practices of the Impella
Abiomed also revealed quite a number of reimbursement milestones
in the quarter, including Impella coverage decisions from Humana,
UnitedHealthcare, Independence Blue Cross and Capital BlueCross.
Moreover, Abiomed commenced its Recovery Right Investigational
Device Exemption (IDE) study to gather information on the safety
and efficacy of the Impella RP (Right Peripheral) device in
April. The Impella RP device will be implanted in 30 patients
with right side heart failure and are being treated in the
catheterization lab or cardiac surgery suite and will be
monitored for the next 2 years.
Additionally, there were two new publications regarding Abiomed's
novel devices in the quarter. One was an economic study on the
percutaneous ventricular assist devices (pVAD), published in The
Journal of Managed Care Medicine (JMCM). The other was regarding
the Protect II study, which was published in the American Health
and Drug Benefits Journal.
Mass.-based Abiomed is engaged in developing, manufacturing and
marketing of medical products designed to assist or replace the
pumping function of the failing heart. Abiomed enjoys a strong
demand for its Impella products. Impella utilization continues to
grow at a healthy pace, as is evident from the increasing number
of patients being treated with the device.
The company has a Zacks Rank #2 (Buy). Other medical stocks such
Mindray Medical International
) with a Zacks Rank #2 (Buy) appear impressive.