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ABIOMED (ABMD) Earnings and Revenues Beat Estimates in Q1

ABIOMED, Inc. ABMD reported first-quarter fiscal 2021 adjusted earnings per share (EPS) of 58 cents, which beat the Zacks Consensus Estimate of 21 cents. The figure declined 42% year over year.

Revenues in Detail

In the fiscal first quarter, revenues came in at $164.9 million, which beat the Zacks Consensus Estimate of $138.2 million by 19.3%. The metric however fell 20.6% from the prior-year quarter.

Q1 in Detail

U.S. Impella product revenues totaled $126.2 million, showing a decline of 25% year over year. Per management, U.S. patient usage of the Impella heart pumps fell 22% in the quarter, mainly due to the coronavirus pandemic.

Outside the United States, Impella product revenues totaled $29.2 million, highlighting a decrease of 7% year over year. Japan Impella product revenues improved 4%, while European Impella product revenues fell 13% year over year.

Margin Trend

In the quarter under review, gross profit totaled $128.9 million, down 24.5% year over year. Gross margin in the quarter was 78.2% of net revenues, down 398 basis points (bps) year over year.

Operating profit totaled $34.1 million, down 43.9% on a year-over-year basis. Operating margin was 20.7%, down 858 bps.

Financial Condition

The company exited the first quarter of fiscal 2021 with $ 214.8 million of cash and cash equivalents compared with $192.3 million at the end of the previous quarter. The balance sheet was also debt free as of Jun 30, 2020.

ABIOMED, Inc. Price, Consensus and EPS Surprise

 

ABIOMED, Inc. Price, Consensus and EPS Surprise

ABIOMED, Inc. price-consensus-eps-surprise-chart | ABIOMED, Inc. Quote

Fiscal 2021 Guidance

Due to uncertainty regarding the extent and duration of the COVID-19 pandemic and the timing of global economic recovery, the company has not issued full-year revenue or operating margin outlook at this time.

Summing Up

ABIOMED exited the first quarter of fiscal 2021 on a strong note. Impella revenues in Japan improved in the quarter under review. New product launches and regulatory approvals continue to buoy optimism. Also, the company’s balance sheet is debt-free.

However, the company’s flagship Impella saw decline in revenues, both internationally and within the United States. Contraction in both the margins is also worrying.

Zacks Rank and Key Picks

ABIOMED currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. TMO, PerkinElmer, Inc. PKI and OPKO Health, Inc. OPK. While PerkinElmer sports a Zacks Rank #1 (Strong Buy), the other two sport a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion outpaced the consensus mark by 0.1%.

PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.

OPKO Health reported second-quarter 2020 EPS of 5 cents against the Zacks Consensus Estimate of a loss of 7 cents per share. Revenues of $301.2 million surpassed the consensus estimate by 28.4%.

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