Zacks Investment Research | Dec 16, 2018 09:02PM ET
Medical Instrument companies Abiomed, Inc. (NASDAQ:ABMD) and DexCom, Inc. (NASDAQ:DXCM) are two solid contenders in the U.S. MedTech space, which is expected to reach a worth of $409.5 billion by 2023 at a CAGR of 4.5%. Notably, analysts believe that 2019 is likely to prove profitable for U.S. medical device companies, courtesy of the 2.3% Medical Device tax abatement along with focus on Artificial Intelligence and cybersecurity.
Against this backdrop, it is difficult to choose between the above-mentioned companies as they have similar business models. Making things more difficult, the scales apparently look balanced as Abiomed carries a Zacks Rank #2 (Buy), while DexCom sports a Zacks Rank #1 (Strong Buy). You can see industry has rallied 8.2% in the same time frame. Meanwhile, the S&P 500 index has declined 3.5%.
Which Way Are Estimates Headed?
Earnings
The Zacks Consensus Estimate for Abiomed’s current-quarter earnings per share stands at 93 cents, suggesting an improvement of 32.9% year over year. The same for DexCom is projected at 13 cents, showing year-over-year growth of 30%.
Sales
The Zacks Consensus Estimate for Abiomed’s current-quarter revenues is pegged at $194.88 million, suggesting growth of 26.5% from the previous year. The same for DexCom is pegged at $283.08 million, reflecting a rise of 28.1%.
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