ABMD reported

Abiomed continues to be excel with a beat and upped their guidance. Light details below

revenue 154 million up for 114, up 34%

GAAP net income 13.4 million or 0.29 cents per share. This was low due to the tax reform act. If you take that out then it was .70 cents a share compared to 0.41 cents a share last year.

operating margin up to 29.1% from 22.2%

Increased their guidance from 565 million to 583 million.

hard to dislike anything



I started a small position mid last year and i has already gone up 80% since then . As I wneg through the earnings report here is what stood out considering hat I initially was wondering where will the recurring revenue come from.

According to ABMD here is a potential 5 B opp for them without much competition and hey have only got 11% at the moment
The hospital re order rates stand at 90%+ and that is the recurring part because with an aging population the number of cases where these interventions are needed keeps increasing

This is a story that has now started reaching an inflection point granted the shares probably are quite pricey a 22 times sales but they re growing 30%+ every quarter and have a net 22% margin despite high R&D and sales investments.

I have 2% invested and also bought in the money call options just a month back in Dec


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This was one of my top performers in 2017, and continues to do well in 2018. I’m holding tight.


I like ABMD a lot. Also one of my top performers, though it’s a smaller position, about 2.5%. The penetration rate for the US for many of the procedures is less than 10%, 12% in Germany, and “just srcratching the surface” in Japan.


30% growth in US and 94% growth internationally. 106% EPS growth. They haven’t even started a full international market push yet. And with the flow of approvals for use in new types of procedures and a near monopoly how can they not have a long runway ahead?

In addition the impella system is razor and blades. Sell the system and then every procedure uses consumables for a continuous revenue stream.