Image source: Abiomed.

What: Days after reporting better-than-expected financial results for its fiscal third quarter of 2016, shares in Abiomed (NASDAQ:ABMD) tumbled 12.5% today.

So what: On Feb. 4, Abiomed management reported that sales in its fiscal third quarter grew 38% year over year to $85.8 million.

The increase was driven by a 45% lift in patient use of its Impella heart-pumping devices, which can be used for up to six hours in patients undergoing certain heart surgeries.

Abiomed's management also reported last week that its adjusted net income was $0.23 in the quarter, which was nicely higher than industry watcher's $0.15 projections.

Because the results were ahead of investors' expectations, it appears that weakness in Abiomed's shares is tied to profit-taking and de-risking amid a broader market sell-off. Since Abiomed's shares were up a whopping 137% last year, it's not a stretch to think that some investors happily rang the register. 

Now what: The fiscal third-quarter performance was strong enough that management bumped up its full-year forecast for fiscal 2016.

Abiomed now expects that revenue will be roughly $326 million for the fiscal year. Previously, it was guiding for sales of between $305 million and $315 million. The forecast implies year-over-year growth of 41%, and that's nicely above prior projections for between 32% and 37% growth.

Abiomed has outpaced EPS expectations in each of the past four quarters, and as a result, investors have boosted their fiscal-year 2017 EPS estimates to $1.14 from $1.04 seven days ago. Despite the increase, Abiomed remains an expensive stock, with a forward P/E ratio of 62.2. However, given that the graying of America should lead to a larger number of heart surgeries performed in the future to drive additional revenue and profit, investors may want to consider buying shares on this drop.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.