The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Abiomed beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Margins expanded across the board.
Abiomed booked revenue of $32.2 million. The six analysts polled by S&P Capital IQ expected to see sales of $31.4 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $27.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.05. The three earnings estimates compiled by S&P Capital IQ anticipated $0.00 per share on the same basis. GAAP EPS were $0.07 for Q3 versus -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 80.5%, 50 basis points better than the prior-year quarter. Operating margin was 6.9%, 940 basis points better than the prior-year quarter. Net margin was 9.1%, 1,200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $34.9 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $124.2 million. The average EPS estimate is $0.02.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 80 members out of 113 rating the stock outperform, and 33 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Abiomed a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Abiomed is outperform, with an average price target of $21.44.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.