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AngioDynamics (ANGO) Q4 Earnings in Line, Revenues Beat Mark
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AngioDynamics, Inc. (ANGO - Free Report) reported adjusted earnings per share (“EPS”) of a penny for fourth-quarter fiscal 2022 compared with the year-ago breakeven EPS. The Zacks Consensus Estimate for the same was in line with the reported figure.
GAAP loss per share came in at 16 cents, narrower than the year-ago loss of 51 cents.
Full-year adjusted EPS was at a breakeven level compared with adjusted EPS of 5 cents at the end of fiscal 2021. The metric surpassed the Zacks Consensus Estimate of a loss of a penny.
Revenue Details
Revenues in the fiscal fourth quarter totaled $86.9 million, up 13.2% year over year on a reported basis (up 12.8% at constant exchange rate or CER). The top line exceeded the Zacks Consensus Estimate by 5.3%.
The company continued to see strong contributions from its Med Tech (which includes the Thrombectomy platform, Auryon and NanoKnife) and Med Device businesses during the quarter.
Full-year revenues were $316.2 million, reflecting an 8.7% improvement from the year-ago period. The metric topped the Zacks Consensus Estimate by 1.4%.
At CER, revenues for fiscal 2022 climbed 8.7% over fiscal 2021.
Geographical Analysis
In the quarter under review, U.S. net revenues totaled $73.7 million, up 15.9% year over year.
International revenues came in at $13.3 million, up 0.4% from the year-ago quarter on a reported basis but down 2.1% at CER.
Segmental Analysis
AngioDynamics’ product offerings fall within three Global Business Units (GBUs) — Oncology, Endovascular Therapies and Vascular Access.
The Oncology arm’s net sales in the fiscal fourth quarter were $15.1 million, reflecting an uptick of 5.8% year over year. This was primarily on the back of increased net sales of disposables of NanoKnife and Microwave.
Endovascular Therapies’ revenues in the fiscal fourth quarter grossed $45.1 million, up 18.5% from the year-ago period. This was driven by Auryon sales and strength in the thrombectomy portfolio. Auryon sales during the quarter were $9.6 million.
Revenues at the Vascular Access segment amounted to $26.7 million, up 9.3% on a year-over-year basis. The segment was boosted by a reduction in the overall backlog for Vascular Access products during the quarter and sustained strong demand for the same.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
In the quarter under review, AngioDynamics’ gross profit rose 9.8% to $46.5 million. However, gross margin contracted 168 basis points (bps) to 53.4%.
Sales and marketing expenses rose 12.6% to $26.8 million year over year. Research and development expenses contracted 13.6% year over year to $7.9 million, whereas general and administrative expenses rose 21.6% year over year to $11.1 million. Adjusted operating expenses of $45.8 million increased 8.9% year over year.
Adjusted operating profit totaled $0.7 million, reflecting a 146.4% surge from the prior-year quarter’s level. Adjusted operating margin in the fiscal fourth quarter expanded 41 bps to 0.8%.
Cash Position
AngioDynamics exited fiscal 2022 with cash and cash equivalents of $28.8 million compared with $48.2 million at the end of fiscal 2021. Long-term debt (net of current portion) at the end of fiscal 2022 was $25 million compared with $20 million at the end of fiscal 2021.
Cumulative net cash used in operating activities came in at $7.2 million against net cash provided by operating activities of $24.1 million a year ago.
FY23 Guidance
AngioDynamics has issued its guidance for fiscal 2023.
The company expects its net sales to be in the range of $342-$348 million. The Zacks Consensus Estimate for the same currently stands at $336.7 million.
The adjusted EPS range is projected to be between a penny and 6 cents per share. The Zacks Consensus Estimate for the metric is currently pegged at 11 cents.
Our Take
AngioDynamics exited the fourth quarter of fiscal 2022 with better-than-expected revenues and in-line earnings. The company continued gaining from its Med Tech and Med Device businesses. Its year-over-year uptick in revenues, along with solid performance by all the three GBUs, is impressive. Solid domestic and international revenues are also encouraging.
During the fiscal fourth quarter, AngioDynamics confirmed its launch of two new AlphaVac products and initiation of two crucial clinical trials — PRESERVE Study for the use of NanoKnife in prostate cancer and APEX study for the use of AlphaVac F18 in the treatment of pulmonary embolism. These developments raise optimism regarding the stock. Adjusted operating margin expansion in the fiscal fourth quarter bodes well for the company.
However, gross margin contraction during the quarter is not encouraging. AngioDynamics continues to face various macro-related headwinds, including supply chain disruptions and ongoing inflationary pressures, which raise our apprehension.
Zacks Rank & Other Key Picks
AngioDynamics currently carries a Zacks Rank #2 (Buy).
A few other stocks from the broader medical space that are supposed to report earnings soon are STERIS plc (STE - Free Report) , ResMed Inc. (RMD - Free Report) and AMN Healthcare Services, Inc. (AMN - Free Report) .
The Zacks Consensus Estimate for STERIS’ first quarter fiscal 2023 adjusted EPS is currently pegged at $1.86. The consensus estimate for revenues is pinned at $1.22 billion. STERIS currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
STERIS projects 10.2% growth for fiscal 2023. STE’s earnings yield of 4.2% compares favorably with the industry’s negative yield.
ResMed currently has a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter fiscal 2022 adjusted EPS is currently pegged at $1.48. The same for revenues is pinned at $917.4 million.
ResMed has an estimated long-term growth rate of 15.7%. RMD’s earnings yield of 3.1% compares favorably with the industry’s negative yield.
AMN Healthcare currently sports a Zacks Rank #1. The Zacks Consensus Estimate for its second-quarter 2022 adjusted EPS is currently pegged at $2.96. The same for its revenues stands at $1.36 billion.
AMN Healthcare has an estimated long-term growth rate of 1.1%. AMN’s earnings yield of 9.3% compares favorably with the industry’s negative yield.
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AngioDynamics (ANGO) Q4 Earnings in Line, Revenues Beat Mark
AngioDynamics, Inc. (ANGO - Free Report) reported adjusted earnings per share (“EPS”) of a penny for fourth-quarter fiscal 2022 compared with the year-ago breakeven EPS. The Zacks Consensus Estimate for the same was in line with the reported figure.
GAAP loss per share came in at 16 cents, narrower than the year-ago loss of 51 cents.
Full-year adjusted EPS was at a breakeven level compared with adjusted EPS of 5 cents at the end of fiscal 2021. The metric surpassed the Zacks Consensus Estimate of a loss of a penny.
Revenue Details
Revenues in the fiscal fourth quarter totaled $86.9 million, up 13.2% year over year on a reported basis (up 12.8% at constant exchange rate or CER). The top line exceeded the Zacks Consensus Estimate by 5.3%.
The company continued to see strong contributions from its Med Tech (which includes the Thrombectomy platform, Auryon and NanoKnife) and Med Device businesses during the quarter.
Full-year revenues were $316.2 million, reflecting an 8.7% improvement from the year-ago period. The metric topped the Zacks Consensus Estimate by 1.4%.
At CER, revenues for fiscal 2022 climbed 8.7% over fiscal 2021.
Geographical Analysis
In the quarter under review, U.S. net revenues totaled $73.7 million, up 15.9% year over year.
International revenues came in at $13.3 million, up 0.4% from the year-ago quarter on a reported basis but down 2.1% at CER.
Segmental Analysis
AngioDynamics’ product offerings fall within three Global Business Units (GBUs) — Oncology, Endovascular Therapies and Vascular Access.
The Oncology arm’s net sales in the fiscal fourth quarter were $15.1 million, reflecting an uptick of 5.8% year over year. This was primarily on the back of increased net sales of disposables of NanoKnife and Microwave.
Endovascular Therapies’ revenues in the fiscal fourth quarter grossed $45.1 million, up 18.5% from the year-ago period. This was driven by Auryon sales and strength in the thrombectomy portfolio. Auryon sales during the quarter were $9.6 million.
Revenues at the Vascular Access segment amounted to $26.7 million, up 9.3% on a year-over-year basis. The segment was boosted by a reduction in the overall backlog for Vascular Access products during the quarter and sustained strong demand for the same.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
AngioDynamics, Inc. price-consensus-eps-surprise-chart | AngioDynamics, Inc. Quote
Margin Analysis
In the quarter under review, AngioDynamics’ gross profit rose 9.8% to $46.5 million. However, gross margin contracted 168 basis points (bps) to 53.4%.
Sales and marketing expenses rose 12.6% to $26.8 million year over year. Research and development expenses contracted 13.6% year over year to $7.9 million, whereas general and administrative expenses rose 21.6% year over year to $11.1 million. Adjusted operating expenses of $45.8 million increased 8.9% year over year.
Adjusted operating profit totaled $0.7 million, reflecting a 146.4% surge from the prior-year quarter’s level. Adjusted operating margin in the fiscal fourth quarter expanded 41 bps to 0.8%.
Cash Position
AngioDynamics exited fiscal 2022 with cash and cash equivalents of $28.8 million compared with $48.2 million at the end of fiscal 2021. Long-term debt (net of current portion) at the end of fiscal 2022 was $25 million compared with $20 million at the end of fiscal 2021.
Cumulative net cash used in operating activities came in at $7.2 million against net cash provided by operating activities of $24.1 million a year ago.
FY23 Guidance
AngioDynamics has issued its guidance for fiscal 2023.
The company expects its net sales to be in the range of $342-$348 million. The Zacks Consensus Estimate for the same currently stands at $336.7 million.
The adjusted EPS range is projected to be between a penny and 6 cents per share. The Zacks Consensus Estimate for the metric is currently pegged at 11 cents.
Our Take
AngioDynamics exited the fourth quarter of fiscal 2022 with better-than-expected revenues and in-line earnings. The company continued gaining from its Med Tech and Med Device businesses. Its year-over-year uptick in revenues, along with solid performance by all the three GBUs, is impressive. Solid domestic and international revenues are also encouraging.
During the fiscal fourth quarter, AngioDynamics confirmed its launch of two new AlphaVac products and initiation of two crucial clinical trials — PRESERVE Study for the use of NanoKnife in prostate cancer and APEX study for the use of AlphaVac F18 in the treatment of pulmonary embolism. These developments raise optimism regarding the stock. Adjusted operating margin expansion in the fiscal fourth quarter bodes well for the company.
However, gross margin contraction during the quarter is not encouraging. AngioDynamics continues to face various macro-related headwinds, including supply chain disruptions and ongoing inflationary pressures, which raise our apprehension.
Zacks Rank & Other Key Picks
AngioDynamics currently carries a Zacks Rank #2 (Buy).
A few other stocks from the broader medical space that are supposed to report earnings soon are STERIS plc (STE - Free Report) , ResMed Inc. (RMD - Free Report) and AMN Healthcare Services, Inc. (AMN - Free Report) .
The Zacks Consensus Estimate for STERIS’ first quarter fiscal 2023 adjusted EPS is currently pegged at $1.86. The consensus estimate for revenues is pinned at $1.22 billion. STERIS currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
STERIS projects 10.2% growth for fiscal 2023. STE’s earnings yield of 4.2% compares favorably with the industry’s negative yield.
ResMed currently has a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter fiscal 2022 adjusted EPS is currently pegged at $1.48. The same for revenues is pinned at $917.4 million.
ResMed has an estimated long-term growth rate of 15.7%. RMD’s earnings yield of 3.1% compares favorably with the industry’s negative yield.
AMN Healthcare currently sports a Zacks Rank #1. The Zacks Consensus Estimate for its second-quarter 2022 adjusted EPS is currently pegged at $2.96. The same for its revenues stands at $1.36 billion.
AMN Healthcare has an estimated long-term growth rate of 1.1%. AMN’s earnings yield of 9.3% compares favorably with the industry’s negative yield.