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Abiomed (ABMD) Hits 52-Week High on Strong Q2 Results

Zacks Equity Research

Shares of Abiomed, Inc. (ABMD) reached a new 52-week high of $33.18 in mid-day trading on Nov 11. The company’s shares closed marginally lower at $33.09 on the same day, translating into a healthy one-year return of roughly 21% and a year-to-date return of around 24%.

Abiomed has a market cap of around $1.3 billion. Average volume of shares traded over the last three months stands at roughly 0.3 million.

Shares of this global healthcare company have been on the rise since it reported impressive second-quarter fiscal 2015 (ended Sep 30, 2014) results on Oct 30. The stock jumped 23.7% on the same day, reflecting investors’ confidence in the company.

Abiomed posted adjusted earnings of 9 cents per share in the second quarter, exceeding the year-ago earnings of 3 cents. Earnings also steered past the Zacks Consensus Estimate of 2 cents.

Revenues in the quarter surged nearly 17% to $52 million, driven by strong demand for the company’s Impella line of heart pumps. Globally, Impella revenues improved 17% year over year while Impella patient usage went up 19%, and reorders jumped 20% from the year-ago quarter.

Abiomed’s Impella utilization continues to grow at a remarkable pace with an additional 27 hospitals purchasing Impella 2.5 during the quarter and 56 other hospitals opting for the Impella CP. The company’s total number of customer sites now stands at 910 and 507 for Impella 2.5 and Impella CP, respectively.

Abiomed raised 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). The Zacks Consensus Estimate of $211 million lies within the guided range.

Furthermore, Abiomed, along with the U.S. Food and Drug Administration (:FDA), recently agreed on using Impella 2.5 for high-risk PCI (percutaneous coronary intervention) with Pre-Market Approval (:PMA). The company anticipates PMA approval of Impella 2.5 by February or March of 2015, following which, Impella 5.0 and Impella CP will be submitted as PMA supplements.

Abiomed's Impella range has an enormous growth potential in the treatment of cardiovascular diseases and is expected to significantly drive revenues going forward.

Currently, Abiomed has a Zacks Rank #2 (Buy).

Other well-placed stocks in the medical instruments sector are AngioDynamics (ANGO), Fluidigm Corp (FLDM) and Globus Medical (GMED). While AngioDynamics sports a Zacks Rank #1 (Strong Buy), both Fluidigm and Globus Medical carry the same rank as Abiomed.

Read the Full Research Report on ANGO
Read the Full Research Report on ABMD
Read the Full Research Report on GMED
Read the Full Research Report on FLDM


Zacks Investment Research