The 10-second takeaway
For the quarter ended March 31 (Q4), Abiomed beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved.
Margins grew across the board.
Abiomed notched revenue of $37.3 million. The eight analysts polled by S&P Capital IQ predicted a top line of $34.9 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $28.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.06. The six earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS were $0.06 for Q4 compared to -$0.05 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 81.8%, 230 basis points better than the prior-year quarter. Operating margin was 7.9%, 1,280 basis points better than the prior-year quarter. Net margin was 6.9%, 1,310 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $36.2 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $153.5 million. The average EPS estimate is $0.22.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 84 members out of 115 rating the stock outperform, and 32 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Abiomed a green thumbs-up, and nine 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 $23.00.
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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.