Abiomed’s Profit Growth Slows On R&D, Sales Hold Strong Despite Shortages


  • ABMD had a decent quarter where revenues grew nicely but profits languished due to sudden growth in R&D spend.
  • Companies like ABMD have to expense R&D, which is not a problem, but a lack of profit growth isn’t great given its valuation.
  • The multiple doesn’t offer much of a margin of safety, but we recognise the premier product portfolio.
  • Overall, there is a defensive angle for the stock given rate increases, but the valuation is too much of a concern.

Human Heart

Eoneren/E+ via Getty Images

Originally published on the Value Lab 14/5/22

Abiomed (NASDAQ:ABMD) makes the Impella portfolio of heart pumps used in various cardiovascular surgeries. The secular angle is strong on the basis that COVID-19 can create cardiovascular issues, but also

ABMD results

Results (Q4 2022 Pres)

valuation abmd


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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