On May 28, we upgraded leading cardiac assist devices maker – Abiomed (ABMD) to Outperform based on its record fourth-quarter fiscal 2013 results.
Why the Upgrade?
Abiomed’s fourth-quarter fiscal 2013 earnings per share (EPS) of 9 cents beat the Zacks Consensus Estimate by 28.6%. The Mass.-based company registered a profit of $3.7 million, substantially up 42.3% year over year.
Revenues for the aforementioned 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.
Given its unique technology, Abiomed enjoys strong demand for its Impella products. The company posted record revenues in fiscal 2013. Moreover, patient support reached a record high in the same year. This is evident from 31% year-over-year growth in global Impella sales in fiscal 2013, which was above the company’s expected guidance.
Abiomed is a medical device company with a blue streak growth path. The guidance provided for fiscal 2014 appears to be encouraging. Both the Impella CP and RP are considered future growth drivers for the company. Multiple near-term drivers, including new products and clinical trials, should further boost the use of Impella. Abiomed also boasts a solid cash position.
Other Stocks to Consider
Besides Abiomed, other stocks in the medical device sector that are currently performing well include Cyberonics (CYBX), Natus Medical (BABY) and Intuitive Surgical (ISRG). Cyberonics and Natus carry a Zacks Rank #1 (Strong Buy), while Intuitive is a Zacks Rank #2 (Buy) stock.
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment