Abiomed Sinks After Heart Pump Maker Cuts Full-Year Revenue Forecast

Abiomed's new, lower estimate for full-year revenue comes in well below analysts' estimates.
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Shares of Abiomed (ABMD) - Get Report plunged Monday after the medical device giant cut its revenue forecast for the full year.

Abiomed's stock price fell 16.15% to $158.52 a share after the heart pump maker spooked investors by slashing its estimate for full-year revenue to the $846 million to $877 million range.

While that still represents an increase of 10% to 14% over the previous year, it is a significant step down from the medical device maker's previous estimate of $885 million to $925 million.

Abiomed's new, lower estimate for full-year revenue also falls below analysts' estimates of $880 million to $890 million, according to Bloomberg.

The slump in Abiomed's stock price came as the Danvers, Mass.-based company released unaudited numbers for its fiscal 2020 third quarter, with full numbers set to be unveiled Feb. 6.

The medical device maker reported unaudited third-quarter revenue of $221.6 million, up 10% from the same period last year, when Abiomed generated $220.6 million.

Abiomed said it kicked off the quarter in October with a 16% jump in patient usage of its devices in the U.S. and a 24% surge in global growth.

Total, unaudited revenue in the United States jumped 8% to $185.6 million, up from $172.6 million the same period the year before.

Abiomed reported a 29% hike in revenue outside the U.S., which rose to $36 million, with Germany and Japan shaping up as particularly strong markets for the company.

"Abiomed remains focused on our goal of creating the new field of heart recovery," said Michael Minogue, the company's president, CEO and chairman, in a press statement.