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What: Shares in Abiomed are jumping by more than 10% after the company released financial results that outpaced Wall Street analyst forecasts.
So What: The medical device maker reported fiscal fourth quarter revenue of $67.6 million, up 34% year-over-year, and full fiscal year sales of $230.3 million, up 25% year-over-year.
Abiomed also reported that rising sales of its heart devices helped gross margin expand from 79.9% last year to 84% last quarter and that full year net income, before income tax provisions, totaled $28.76 million for the fiscal year, up from $8.53 million in the previous fiscal year.
Now What: In March, the FDA granted marketing approval for Abiomed's Impella 2.5 system for use in certain high-risk heart procedures, including angioplasty and stenting and that product could help propel sales higher in fiscal 2016. Abiomed is forecasting that revenue will grow betwen 24% and 28% this coming fiscal year to between $285 and $295 million -- that's up nicely from prior estimates for sales of between $260 million and $270 million.
Since there are 720,000 heart attacks every year and the number is likely to climb as baby boomers get older, demand for increasingly effective treatments like those made by Abiomed, should continue to grow, and that makes this company one that investors should be watching.
The article Why Shares in Abiomed, Inc Are Soaring Higher originally appeared on Fool.com.
Todd Campbell has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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