Medical device maker Abiomed (NASDAQ:ABMD) reported its fiscal second-quarter results on Thursday. Revenue growth came in at a healthy 37% thanks to increased penetration rates in the U.S. and a continued push into the rest of the world. Operating leverage helped translate the strong top-line growth into another triple-digit gain on the bottom line.

Abiomed's fiscal second quarter: The raw numbers

Metric

Q2 2019

Q2 2018

Year-Over-Year Change

Revenue

$181.8 million

$132.8 million

37%

GAAP net income

$50.1 million

$24.5 million

104%

Earnings per share

$1.09

$0.54

102%

Data source: Abiomed.

What happened with Abiomed this quarter?

  • Sales in the U.S. grew at a 34% clip. The rate of growth outside the states was even more impressive at 67%.
  • Revenue from Japan totaled $4.1 million. A total of 14 sites are now up and running.
  • Gross margin remained very strong at 83.6%.
  • Impella reorder rates remain around 100%.
  • Operating margin for the period was 27.7%. That was a 380-basis-point increase over the same time last year.
  • Net income was boosted by a $12.9 million tax gain, or $0.28 per share.
  • Cash balance at quarter end was $410 million. The balance sheet remains free of debt.
Surgeon with gloves on

Image source: Getty Images.

What management had to say

CEO Michael Minogue was quite pleased with his company's performance during the quarter: "We have established a strong foundation with our innovation and technology, balance sheet, and intellectual-property portfolio. We are executing our plan for sustainable growth, while helping to improve patient outcomes focused on native-heart recovery."

Minogue also stated that the company only recently surpassed a 10% penetration rate in the U.S., which reaffirms that the business still has a huge runway for growth ahead.

Looking forward

Abiomed announced that data from its STEMI (ST-segment elevation myocardial infarction) DTU (door-to-unloading) safety and feasibility study, approved by the Food and Drug Administration, will be released at the upcoming American Heart Association's Scientific Sessions on Nov. 11. The company plans on holding a short call with investors the following day to discuss the results in more detail.

For the second time this fiscal year, CFO Todd Trapp boosted the low end of full-year revenue guidance. The new range calls for revenue to land between $765 million and $770 million, which implies year-over-year growth of 29% to 30%. The company also reaffirmed its goal of a delivering a GAAP (generally accepted accounting principles) operating margin in 2019 in the range of 28% to 30%.

Trapp also stated that Abiomed expects to show "solid growth" in the back half of the fiscal year, as it laps challenging year-over-year comparisons.

During his final remarks on the conference call with investors, Minogue reaffirmed that the company is well-positioned to drive continued growth:

We are confident in our future, with Impella growth opportunities of several hundred thousand patients with new and existing indications, new products, and new geographies. No other company provides approved percutaneous heart pumps that unload the left and right ventricle, and protect and recover heart muscle for elective, urgent, and emergent patients. I am proud of our employees and appreciate their dedication to recovering hearts and saving lives, and I'm thankful to our customers and our shareholders for their continued support.

Brian Feroldi owns shares of Abiomed. The Motley Fool owns shares of and recommends Abiomed. The Motley Fool has a disclosure policy.