Abiomed Earnings Beat in 4Q - Analyst Blog
03 Maggio 2013 - 11:50AM
Zacks
Abiomed Inc.’s
(ABMD) 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.
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
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 –
$157 million.
Margins
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
quarter.
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% from 19.3%.
Balance Sheet
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.
Guidance
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.
Recent Developments
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 heart
pump.
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.
Our Take
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 as
Accuray (ARAY), Intuitive
Surgical (ISRG) and Mindray Medical
International (MR) with a Zacks Rank #2 (Buy) appear
impressive.
ABIOMED INC (ABMD): Free Stock Analysis Report
ACCURAY INC (ARAY): Free Stock Analysis Report
INTUITIVE SURG (ISRG): Free Stock Analysis Report
MINDRAY MEDICAL (MR): Free Stock Analysis Report
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