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Exploring Abiomed’s Latest Performance Trends

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Abiomed overview

Abiomed (ABMD) provides mechanical circulatory support devices and care for heart failure patients. Its products enable the heart to rest, heal, and recover by improving blood flow and assisting the heart’s pumping function. They are used in the cardiac catheterization lab, by interventional cardiologists, and in heart surgery.

In this series, we’ll explore Abiomed’s financials and valuation along with analysts’ views on its stock.

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Abiomed’s top line

The third quarter of 2018 is the second quarter of Abiomed’s fiscal 2019. In the second quarter, Abiomed’s total revenue rose YoY (year-over-year) to $181.78 million from $132.82 million. Abiomed’s principal focus is on driving the market penetration of its family of Impella heart pumps.

The company’s Impella product revenue rose YoY to $175.27 million from $127.4 million primarily due to higher device sales in the United States driven by the increasing utilization of disposable catheter products. Its services and other revenue also rose YoY to $6.51 million from $5.42 million due to higher preventive maintenance service contracts.

Abiomed’s revenue from the United States rose YoY to $158.24 million from $118.67 million. Its international revenue also increased YoY to $23.53 million from $14.15 million.

In fiscal 2019 and fiscal 2020, Abiomed is expected to generate revenues of $773.55 million and $990.3 million, respectively, compared to $593.75 million in fiscal 2018. Meanwhile, peers Abbott Laboratories (ABT), Boston Scientific (BSX), and Edwards Lifesciences (EW) are expected to have revenues of $30.66 billion, $9.82 billion, and $3.81 billion, respectively, in fiscal 2018. Abiomed’s cash per share is $9.01, while Abbott, Boston Scientific, and Edwards Lifesciences have cash per share of $4.21, $0.12, and $7.46, respectively.

Next, we’ll look at Abiomed’s gross margin trends.

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