In response to pumping out record quarterly results and sharing a slew of upbeat news announcements with investors, shares of Abiomed (NASDAQ:ABMD), a medical device maker focused on heart recovery, jumped 14.1% in February according to data from S&P Global Market Intelligence.
Abiomed got off to a fast start in February after it reported strong fiscal third-quarter results:
- Revenue grew 34% to $154 million.
- Adjusted net income more than doubled to $32.2 million.
- Adjusted earnings per share of $0.70 were far higher than the $0.51 that Wall Street had expected.
If that wasn't exciting enough, the company also shared two positive regulatory updates with investors later in the month, including:
- Winning FDA approval for a label expansion claim for its Impella heart pumps to treat heart failure associated with cardiomyopathy leading to cardiogenic shock.
- Gaining FDA approval for a label expansion claim for certain Impella heart pumps to be used during elective and urgent high risk percutaneous coronary intervention (PCI) procedures.
Given the upbeat financial results and label expansion wins, it isn't hard to figure out why Abiomed's shares remain on fire.
Between label expansion claims, product innovations, and international expansion, there are plenty of reasons for investors to believe that Abiomed's days of hyper growth are here to stay. While the company's stock cannot be called cheap right now -- shares are currently trading for more than 22 times sales and 85 times forward earnings -- I still think the long-term potential of this business is so great that the company can continue to put up market-beating results.