Abiomed Inc. (ABMD) reported second-quarter fiscal 2015 earnings of 9 cents per share, outshining the Zacks Consensus Estimate of 2 cents. Earnings also exceeded the year-ago equivalent of 3 cents per share.
Quarter Details
Revenues surged 17.1% to approximately $52 million, outpacing the Zacks Consensus Estimate of $50 million. Globally, Impella revenues grew 17% to $46.9 million in the quarter with a 14% rise in the U.S. Impella patient usage went up 19%, while reorders jumped 20% from the year-ago quarter.
Abiomed revealed that an additional 27 hospitals purchased Impella 2.5 during the quarter, bringing the total number of customer sites to 910. In addition, 56 hospitals purchased Impella CP during the quarter, bringing the total number of Impella CP U.S. sites to 507.
Outside the U.S., Impella revenues shot up 53% to $4.9 million.
Gross margin expanded 190 basis points (bps) to 81.5%, primarily due to fewer placements of the AIC consoles, which totaled 140 in the quarter compared to 172 in the year-ago period.
Costs and expenses as percentage of revenues contracted 480 basis points (bps) on a year-over-year basis to 92%. This was primarily due to 190 bps, 100 bps and 240 bps decline in cost of products, research & development (R&D), and selling, general & administrative (SG&A) expenses, respectively.
Consequently, operating margin surged 580 bps on a year-over-year basis to 8% on lower expenses.
Abiomed had cash and cash equivalents of $111.9 million as of Sep 30, 2014.
Guidance
Abiomed increased the lower end of its revenue guidance for fiscal 2015. The company now expects revenues in the range of $209–$212 million (up from the earlier guided $205–$212 million). Operating margin is expected to be in the band of 1% to 4%.
Our Take
Abiomed reported better-than-expected fiscal second quarter results. We believe the anticipated approval of the Impella 2.5 by Feb/Mar 2015 will serve as a significant growth catalyst for the company.
Zacks Rank
Currently, Abiomed has a Zacks Rank #2 (Buy). Some other well-placed stocks in the same sector are AngioDynamics (ANGO), Fluidigm Corp (FLDM) and BioTelemetry (BEAT). All of them sport a Zacks Rank #1 (Strong Buy).
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