Abiomed (NSDQ:ABMD) shares are up about 6% this morning after the medical device maker posted stronger-than-expected earnings for its fiscal 3rd quarter and raised its revenue outlook for the rest of fiscal 2016.
Danvers, Mass.-based Abiomed reported profits of $10.6 million, or 23¢ per share, on sales of $85.8 million for the 3 months ended Dec. 31, 2015, for a bottom-line slide of -23.3% on sales growth of 38.4%.
Analysts on Wall Street were looking for earnings of 15¢ on sales of $80.0 million.
“I am proud of our discipline and execution that we have demonstrated in achieving this early phase of success. We are operationally prepared with our sector expertise to take advantage of this unique organic opportunity,” chairman, president & CEO Michael Minogue said in prepared remarks. “Abiomed is revolutionizing the treatment for heart failure by focusing exclusively on the heart muscle and with new indications, new geographies and new products on the horizon; the Impella platform has a long runway for growth.”
Abiomed said it now expects to post sales of $326 million this year, including a $90 million 4th-quarter contribution, up from prior guidance for $305 million to $315 million.
Leerink Partners analyst Danielle Antalffy said the company is “well on the path” to its goal for a compound annual growth rate in the low 30% range by the end of 2020.
“In the U.S., ABMD clearly continues to drive what we believe is sustainable adoption momentum that should continue to ramp with the recent Impella 2.5 PMA approval as the company can more aggressively market to physicians than before,” Antalffy wrote this morning in a note to investors. “Again, we believe this adoption momentum is under-appreciated by the Street – particularly given what we view may be an open-ended market opportunity in protected PCI as previously untreated patients are now increasingly treated – paving the way for consistent ‘beat-and-raise’ quarters over the near-to-medium term.”
ABMD shares were up 6.0% to $89.91 apiece today in mid-morning trading.