Abiomed (NASDAQ: ABMD) tanked more than 15% in the pre-market session as the company missed first quarter 2020 results and cut down FY20 guidance. GAAP net income was $88.9 million, or $1.93 per diluted share compared to $90.1 million or $1.95 per share in the prior-year quarter. Revenue rose 15.4% to $207.7 million, but missed analysts prediction of $210.69 million.
Abiomed trimmed down its outlook for fiscal 2020. The company now predicts revenue to be in the range of $$885 million to $925 million (15-20% growth over FY19) compared to the previous estimate of $900 million to $945 million (17-23% growth over FY19). GAAP operating margin expectation also reduced to a range of 28-30% from the prior range of 29-31%.
“In Q1, we implemented new training programs, organizational changes in distribution, and launched external initiatives that will require time to drive more growth in the future,” said CEO Michael Minogue.
Today, the Board of Directors of Abiomed authorized a stock repurchase of up to $200 million.
On May 13, the Danvers, Massachusetts-based company received U.S. FDA approval for Impella 5.0 and Impella LD (Abiomed’s heart pump devices) extended duration of use from 6 days to 14 days for cardiogenic shock derived from acute myocardial infarction (AMI) or cardiomyopathy.
Abiomed, which plummeted to a new 52-week low ($228.00) on May 2, had slipped 14% since the beginning of this year and 21% in the trailing 12 months. Shares of Abiomed could witness a new yearly low when the market opens today.