Abiomed’s fiscal Q2 beat-n-raise not enough for investors

Investors drove Abiomed (NSDQ:ABMD) shares down nearly 29% today despite fiscal 2nd-quarter results that beat expectations on the back of a 47.5% top-line gain.

The Danvers, Mass.-based heart pump maker posted profits of $7.7 million, or 17¢ per share, on sales of $76.4 million, for profit growth of 101.5% compared with the same period last year.

The consensus outlook on Wall Street was for earnings of 16¢ on sales of $74.6 million. Abiomed raised its outlook for the rest of fiscal 2016, saying it now expects operating margins of 15% to 17%, up from prior guidance for 14% to 16%. Full-year sales are expected to be between $305 million and $315 million, up from $300 million to $310 million.

Bafflingly, ABMD shares were down 28.3% to $70.72 apiece in mid-afternoon activity today. 

“We have had an exciting start to fiscal year 2016, with 1st-half revenue growth of 49% and establishment of Protected PCI as a new indication. As evidenced by our patient growth and awareness at TCT, Protected PCI has been validated by physicians that treat higher risk patients requiring percutaneous hemodynamic support in the cath lab,” chairman, president & CEO Michael Minogue said in prepared remarks. “We are confident that in the years ahead, Abiomed will deliver strong growth, support new indications and countries, and launch new best in class products. As always, Abiomed is committed to meaningfully impacting the lives of our patients and helping our physicians improve outcomes.”

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