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Why Abiomed Stock Popped Today

By Prosper Junior Bakiny - Jan 28, 2021 at 1:51PM

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The company released its latest quarterly report.

What happened?

On Thursday morning, medical devices specialist Abiomed (ABMD -0.01%) released its financial reports for the third quarter of its fiscal year 2021, which ended on Dec. 31, 2020. Investors seem to be happy with the company's performance during this quarter: Abiomed's stock is up by 7.7% as of 1:26 p.m. EST, after jumping by as much as 17.9% earlier today.

So what

Abiomed reported $231.7 million in revenue, representing a 4.5% increase compared to the third quarter of the previous fiscal year. The company's top line also came in above the average analyst estimate of $225.59 million. Abiomed's Impella heart pumps did a lot of the heavy lifting for the company during this period. Impella product revenue rose 4% year over year to $220.8 million. Meanwhile, the company reported a net income of $61.9 million, or $1.35 on a per-share basis.

Upward-bound graph on a dollar bill.

Image source: Getty Images.

While both Abiomed's bottom line and earnings per share (EPS) decreased compared to the year-ago period, its EPS came in above the $1.13 analysts were expecting on average. For the fourth quarter of its fiscal year 2021, the healthcare company expects revenue between $225 million and $235 million, representing a year-over-year increase between 9% to 14%.

Now what

Like many other medical device specialists (or companies in other industries for that matter), the pandemic harmed Abiomed's business. Despite coronavirus-related headwinds, the company was able to record decent revenue growth for the quarter and a better-than-expected bottom line. This bodes well for the company's future. 

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