ABIOMED (ABMD) to Report Q2 Earnings: What's in the Offing?

ABIOMED, Inc. ABMD is scheduled to release second-quarter fiscal 2021 results on Oct 29, before the opening bell. The company delivered an earnings surprise of 176.2% in the last reported quarter. Its earnings surpassed estimates in each of the trailing four quarters, the average beat being 48.2%.

Q2 Estimates Picture

The Zacks Consensus Estimate for ABIOMED’s fiscal second-quarter revenues is pegged at $201.4 million, suggesting a fall of 1.8% from the year-ago quarter. The consensus estimate for earnings stands at 87 cents per share, indicating a decline of 15.5% from the year-ago reported figure.

Factors to Drive Q2 Results

ABIOMED is likely to have witnessed a fall in U.S. Impella product revenues in the fiscal second quarter due to a drop in usage of Impella heart pumps owing to the COVID-19 pandemic.

Nonetheless, the treatment success rates of ABIOMED’s SmartAssist, Impella Connect, IQ Impella Quality Assurance Database and Impella 5.0 are expected to get reflected in the quarterly results.

The full commercial launch of the Impella 5.5 in May is expected to have driven fiscal second-quarter performance. Moreover, Impella 2.5 and CP with SmartAssist are currently in high demand. These are likely to have positively impacted the company’s performance in the quarter to be reported.

In June 2020, the company’s Impella RP attained the FDA’s Emergency Use Authorization (EUA) for treating COVID-19-related right heart failure or decompensation, including pulmonary embolism (PE). In the same month, the company announced that the FDA has approved investigational device exemption application to initiate an early feasibility study with a first-in-human trial of the company’s 9 French (Fr) Impella ECP heart pump.

In the same month, the company launched a revolutionary digital education platform called CAMP PCI, which stands for Coronary Artery & Myocardial Protected Percutaneous Coronary Intervention.

ABIOMED, Inc. Price and EPS Surprise


ABIOMED, Inc. Price and EPS Surprise

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

In July, the company announced that the FDA has approved a one-way digital data streaming with respect to patient support from its Automated Impella Controller (AIC), which is the external console utilized with Impella heart pumps. In August, the company attained FDA EUA for left-sided Impella heart pumps to provide left ventricular unloading and support to COVID-19 patients who are undergoing ECMO treatment and have developed pulmonary edema or myocarditis.

These positive developments are likely to have contributed to the company’s topline during the fiscal second quarter.

However, it is important to note here that the fiscal second quarter continued bearing the brunt of the pandemic, hurting interventional cardiology procedures. This, is turn, has likely weighed on the company’s Impella product line in the quarter.

Moreover, the company has been facing rising pricing pressure due to intensifying competition in key markets. This, in turn, is expected to have limited the company’s margin expansion capabilities.

Earnings Whispers

Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see below.

Earnings ESP: ABIOMED has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ABIOMED carries a Zacks Rank #3.

Stocks Worth a Look

Here are a few medical stocks worth considering as these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Masimo Corporation MASI has an Earnings ESP of +10.71% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cardinal Health, Inc. CAH has an Earnings ESP of +1.70% and a Zacks Rank of 2 at present.

IDEXX Laboratories, Inc. IDXX has an Earnings ESP of +0.35% and is a Zacks #2 Ranked stock.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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