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ABIOMED (ABMD) to Report Q3 Earnings: What's in the Offing?

ABIOMED, Inc. ABMD is scheduled to release third-quarter fiscal 2020 results on Feb 6, before market opens. We believe that despite the persistent foreign currency woes, solid Impella product line prospects are expected to reflect on the results.
 
ABIOMED delivered an earnings surprise of 10.8% in the last reported quarter, the trailing four-quarter earnings surprise being a positive 3.7%, on average.
 
Q3 Estimates Picture
 
The Zacks Consensus Estimate for ABIOMED’s third-quarter earnings per share is pegged at $1.09, indicating a year-over-year improvement of 12.4%.
 
Let’s see how things are shaping up prior to the earnings release.

ABIOMED, Inc. Price and EPS Surprise

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

Impella Likely to Drive Q3 Results
 
ABIOMED’s flagship product line, Impella, has consistently boosted the company’s top line. Impella, a support system of percutaneous, catheter-based devices offering hemodynamic support to the heart, is expected to have driven fiscal third-quarter earnings as well.
 
Notably, the treatment success rates of ABIOMED’s SmartAssist, Impella Connect, IQ Impella Quality Assurance Database and Impella 5.0 is expected to reflect in the quarterly results.
 
Apart from these, the recent post-approval studies for Impella 5.5 have received a nod from the FDA, which signifies increasing adoption of the device. Additionally, recent FDA approval of the Impella 5.5 with SmartAssist and plans to launch the same in the United States also buoy optimism. Moreover, Impella 2.5 and CP with SmartAssist are currently much in demand.
 
Notably, ABIOMED’s preliminary results project U.S. patient usage growth of 16% year over year and international growth of 24%. U.S. revenues are expected to have grown 8% year over year to $185.6 million. Internationally, revenues are estimated at $36.0 million, suggesting a 29% year-over-year rise on strength in Germany and Japan.
 
Thus, quarterly revenues are anticipated at $221.6 million, suggesting a 10% year-over-year rise but the metric is expected to lag the consensus mark.
 
Resultantly, the company slashed its fiscal 2020 revenue guidance.
 
Revenues are now expected within $846-$877 million, indicating an increase of 10-14% year over year. This compares to the earlier projected range of $885-$925 million, calling for a 15-20% rise year over year.
 
However, ABIOMED faces stiff competition in the global MedTech space and fluctuations in currency exchange rates.
 
Earnings Whispers
 
Per our proven model, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to deliver a positive earnings surprise. That 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
 
Stocks Worth a Look
 
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
 
DexCom DXCM has an Earnings ESP of +17.07% and a Zacks Rank #2.
 
AmerisourceBergen ABC has an Earnings ESP of +0.82% and a Zacks Rank #3.
 
HealthEquity HQY has an Earnings ESP of +18.56% and a Zacks Rank #2.
 
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ABIOMED, Inc. (ABMD): Free Stock Analysis Report
 
DexCom, Inc. (DXCM): Free Stock Analysis Report
 
AmerisourceBergen Corporation (ABC): Free Stock Analysis Report
 
HealthEquity, Inc. (HQY): Free Stock Analysis Report
 
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