I saw Abiomed on Kevin’s 1YRPEG Spreadsheet (which by the way is absolutely great Kevin!).

He also had a note about not being able to sustain the incredible earnings growth from $0.18 to $2.80 this year.

Looking through the 10K, $2.10 of that growth was due to an income tax benefit leaving $0.70 of organic growth.

However, that is still growth of 288%. Revenue grew 25%. Gross margins expanded to 83% from 80%.

I couldn’t decipher the reasoning behind the income tax benefit. If anyone cares to look into that, it would be helpful.

Their products serve high-risk angioplasty patients. They are essentially tiny pumps inserted via the femoral artery (just like angioplasty) then fed into an area of the heart to keep it pumping for up to 6 hours pre and post surgery when complications can occur.

I don’t know anything about their addressable market or what doctors think of their products so I’ll do a bit more digging. There is a DOJ investigation into ABMD “labeling & marketing” of their products. Reading the 10K, it appears ABMD complied with FDA warnings in 2012, however, the DOJ continues their investigation.

I’m interested in other’s opinions on ABMD.