Abiomed Earnings: Here’s Why the Stock is Falling Now

Abiomed Inc. (NASDAQ:ABMD) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7.14%.

Abiomed Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.04 in the quarter versus EPS of $0.08 in the year-earlier quarter.

Revenue: Rose 10.11% to $42.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Abiomed Inc. reported adjusted EPS loss of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.06. It missed the average revenue estimate of $42.93 million.

Quoting Management: “We are on track to achieve our fiscal year revenue guidance and set new records in patient utilization. We are investing for success in our training, regulatory approvals and product portfolio,” said Michael R. Minogue, Chairman, President and Chief Executive Officer of Abiomed. “We are pleased to report today that the FDA has recently approved our PMA Shell for our Impella modular submission.”

Key Stats (on next page)…

Revenue decreased 2.22% from $43.67 million in the previous quarter. EPS decreased to $-0.04 in the quarter versus EPS of $0.09 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.08 to a profit $0.07. For the current year, the average estimate has moved down from a profit of $0.35 to a profit of $0.32 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)