Abiomed, Inc. (ABMD) reported third quarter of fiscal 2010 results. For the quarter, net loss per share was 11 cents, beating the Zacks Consensus Estimate of loss per share of 18 cents and the year-ago loss of 20 cents.
Earnings Estimate Revision Trend and Zacks Rank
The earnings estimate revision for Abiomed has demonstrated a mixed trend in the past 30 days. During the period, one out of eleven analysts has downgraded his earnings estimate while none upgraded his estimate for the fourth quarter of fiscal 2010. There were no estimates revisions from the seven analysts tracking the stock for the first quarter of fiscal 2011.
For fiscal 2010 and fiscal 2011, only one out of twelve analysts has downgraded and upgraded his earnings estimates for full year, respectively.
The mixed trend in the earnings estimate justifies the present Zacks Rank # 3 (Neutral) recommendation for the stock.
Abiomed has witnessed earnings surprises in one out of the preceding four quarters with the four-quarter average being 4.74%. In the third and second quarters of fiscal 2010, Abiomed beat the Zacks Consensus Estimate by 38.89% and 0%, respectively.
Sales
Total revenues in the reported quarter increased 32% year over year to $22.8 million. Growth was led by the higher adoption of the company’s Impella products. In the third quarter, roughly 425 commercial patients in the U.S. were treated with Abiomed’s Impella products, compared to 160 in the year-ago quarter.
Worldwide, Impella revenues increased 81% year over year to $15.9 million. Non-Impella revenues declined 18% year over year to $6.9 million.
Margins
Abiomed reported an expansion in margins. Gross margin increased 100 basis points (bps) year over year to 75.0%. Operating margin increased 1,330 bps year over year to a negative 21.7%.
Balance Sheet and Cash Flow
Abiomed ended the third quarter with cash, cash equivalents, short and long-term investments of roughly $51.7 million, compared to $52.3 million at the end of the previous quarter. Cash flow from operations was a negative $0.6 million in the reported quarter.
Outlook
Abiomed expects total revenues in fiscal 2010 in the range of $84 million to $86 million, compared to the previous guidance of $86 million to $91 million. Impella revenues should range between $55 million and $58 million.
Abiomed is engaged in developing, manufacturing and marketing medical products designed to assist or replace the pumping function of a failing heart. Abiomed’s products are designed to enable the heart to rest, heal and recover.
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