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AngioDynamics (ANGO) Q1 Earnings, Revenues Lag Estimates
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AngioDynamics, Inc. (ANGO - Free Report) reported an adjusted loss per share of 6 cents for first-quarter fiscal 2023 compared with the year-ago loss of 2 cents per share. The loss per share was also wider than the Zacks Consensus Estimate of a loss of 2 cents per share.
Our projection of adjusted loss per share was 2 cents, in line with the Zacks Consensus Estimate.
GAAP loss per share came in at 33 cents, wider than the year-ago loss of 18 cents.
Revenue Details
Revenues in the fiscal first quarter totaled $81.5 million, up 5.9% year over year on a reported basis (up 6.5% at constant exchange rate or CER). The top line missed the Zacks Consensus Estimate by 1.9%.
The first-quarter fiscal revenue compares to our estimate of $83.6 million.
The company continued to see strong contributions from its Med Tech (which includes the Thrombectomy platform, Auryon and NanoKnife) business during the quarter.
Geographical Analysis
In the quarter under review, U.S. net revenues totaled $69 million, up 7.1% year over year.
This figure compares to our U.S. net revenues’ fiscal first-quarter projection of $70.3 million.
International revenues came in at $12.5 million, up 0.1% from the year-ago quarter on a reported basis and up 3.8% at CER.
This figure compares to our fiscal first-quarter International revenues’ projection of $13.3 million.
Segmental Analysis
AngioDynamics derives revenues from two businesses — Med Tech and Med Device.
The Med Tech business’ net sales in the fiscal first quarter were $22.8 million, reflecting an uptick of 29.6% year over year. This was primarily on the back of increased net sales of Auryon amounting to $8.8 million (up 50%), thrombectomy sales of $10 million (up 31.8%) and NanoKnife disposable sales (up 12.3%) compared to the prior-year quarter.
This figure compares to our fiscal first quarter’s Med Tech business’ net sales projection of $20.8 million.
Med Device revenues in the fiscal first quarter grossed $58.7 million, down 1.1% from the year-ago period. This was due to modest declines in the balance of the portfolio, partially offset by modest growth in AngioDynamics’ core dialysis and microwave products.
This figure compares to our fiscal first quarter’s Med Device business’ net sales projection of $62.8 million.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
In the quarter under review, AngioDynamics’ gross profit rose 5.4% to $42.3 million. However, the gross margin contracted 26 basis points (bps) to 51.9%.
We had projected 52.4% of gross margin for first-quarter fiscal 2023.
Sales and marketing expenses rose 8.6% to $26.5 million year over year. Research and development expenses increased 12.7% year over year to $8.3 million, whereas general and administrative expenses rose 12.9% year over year to $10.1 million. Adjusted operating expenses of $44.9 million increased 10.3% year over year.
The adjusted operating loss totaled $2.7 million compared with the prior-year quarter’s adjusted operating loss of $0.6 million.
Cash Position
AngioDynamics exited the first quarter of fiscal 2023 with cash and cash equivalents of $24.6 million compared with $28.8 million at the end of fiscal 2022. The long -term debt (net of current portion) at the end of first quarter of fiscal 2023 was $49.8 million compared with $25 million at the end of fiscal 2022.
Net cash used in operating activities came in at $24.7 million compared with net cash used in operating activities of $8.9 million a year ago.
FY23 Guidance
AngioDynamics has reiterated its guidance for fiscal 2023.
The company continues to expect its net sales in the range of $342-$348 million. The Zacks Consensus Estimate for the same currently stands at $344.9 million.
The adjusted earnings per share (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 2 cents.
Our Take
AngioDynamics exited the first quarter of fiscal 2023 with lower-than-expected results. Dismal bottom-line performance and decline in Med Device revenues are concerning. The gross margin contraction and adjusted operating loss incurred during the quarter are not encouraging. AngioDynamics continues to face various macro-related headwinds, including persistent inflation, and hospital staffing and procedural pressures, which raise our apprehension.
On the positive side, the company continued gaining from its Med Tech business. Its year-over-year uptick in revenues and solid domestic and international revenues are impressive. Robust mechanical thrombectomy revenue, which includes AngioVac and AlphaVac sales as well as strong thrombus management revenue led by strength in Uni-Fuse is also promising.
During the fiscal first quarter, AngioDynamics confirmed its launch of Auryon catheter line extensions providing enhanced usability. In September, the company also received regulatory clearance for a hydrophilic-coated catheter. These developments raise optimism regarding the stock.
Zacks Rank & Stocks to Consider
AngioDynamics currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space that are supposed to report earnings soon are Abiomed, Inc. , Globus Medical, Inc. (GMED - Free Report) and AMN Healthcare Services, Inc. (AMN - Free Report) .
The Zacks Consensus Estimate for Abiomed’s second quarter fiscal 2023 adjusted EPS is currently pegged at $1.03. The consensus estimate for revenues is pinned at $273.4 million. Abiomed currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Abiomed projects 25% growth for the next five years. ABMD’s earnings yield of 1.9% compares favorably with the industry’s negative yield.
Globus Medical currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its third-quarter 2022 adjusted EPS is currently pegged at 56 cents. The same for revenues is pinned at $252.6 million.
Globus Medical has an estimated long-term growth rate of 11.2%. GMED’s earnings yield of 3.5% compares favorably with the industry’s negative yield.
AMN Healthcare currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter 2022 adjusted EPS is currently pegged at $2.33. The same for its revenues stands at $1.09 billion.
AMN Healthcare has an estimated long-term growth rate of 3.2%. AMN’s earnings yield of 10.1% compares favorably with the industry’s negative yield.
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AngioDynamics (ANGO) Q1 Earnings, Revenues Lag Estimates
AngioDynamics, Inc. (ANGO - Free Report) reported an adjusted loss per share of 6 cents for first-quarter fiscal 2023 compared with the year-ago loss of 2 cents per share. The loss per share was also wider than the Zacks Consensus Estimate of a loss of 2 cents per share.
Our projection of adjusted loss per share was 2 cents, in line with the Zacks Consensus Estimate.
GAAP loss per share came in at 33 cents, wider than the year-ago loss of 18 cents.
Revenue Details
Revenues in the fiscal first quarter totaled $81.5 million, up 5.9% year over year on a reported basis (up 6.5% at constant exchange rate or CER). The top line missed the Zacks Consensus Estimate by 1.9%.
The first-quarter fiscal revenue compares to our estimate of $83.6 million.
The company continued to see strong contributions from its Med Tech (which includes the Thrombectomy platform, Auryon and NanoKnife) business during the quarter.
Geographical Analysis
In the quarter under review, U.S. net revenues totaled $69 million, up 7.1% year over year.
This figure compares to our U.S. net revenues’ fiscal first-quarter projection of $70.3 million.
International revenues came in at $12.5 million, up 0.1% from the year-ago quarter on a reported basis and up 3.8% at CER.
This figure compares to our fiscal first-quarter International revenues’ projection of $13.3 million.
Segmental Analysis
AngioDynamics derives revenues from two businesses — Med Tech and Med Device.
The Med Tech business’ net sales in the fiscal first quarter were $22.8 million, reflecting an uptick of 29.6% year over year. This was primarily on the back of increased net sales of Auryon amounting to $8.8 million (up 50%), thrombectomy sales of $10 million (up 31.8%) and NanoKnife disposable sales (up 12.3%) compared to the prior-year quarter.
This figure compares to our fiscal first quarter’s Med Tech business’ net sales projection of $20.8 million.
Med Device revenues in the fiscal first quarter grossed $58.7 million, down 1.1% from the year-ago period. This was due to modest declines in the balance of the portfolio, partially offset by modest growth in AngioDynamics’ core dialysis and microwave products.
This figure compares to our fiscal first quarter’s Med Device business’ net sales projection of $62.8 million.
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 5.4% to $42.3 million. However, the gross margin contracted 26 basis points (bps) to 51.9%.
We had projected 52.4% of gross margin for first-quarter fiscal 2023.
Sales and marketing expenses rose 8.6% to $26.5 million year over year. Research and development expenses increased 12.7% year over year to $8.3 million, whereas general and administrative expenses rose 12.9% year over year to $10.1 million. Adjusted operating expenses of $44.9 million increased 10.3% year over year.
The adjusted operating loss totaled $2.7 million compared with the prior-year quarter’s adjusted operating loss of $0.6 million.
Cash Position
AngioDynamics exited the first quarter of fiscal 2023 with cash and cash equivalents of $24.6 million compared with $28.8 million at the end of fiscal 2022. The long -term debt (net of current portion) at the end of first quarter of fiscal 2023 was $49.8 million compared with $25 million at the end of fiscal 2022.
Net cash used in operating activities came in at $24.7 million compared with net cash used in operating activities of $8.9 million a year ago.
FY23 Guidance
AngioDynamics has reiterated its guidance for fiscal 2023.
The company continues to expect its net sales in the range of $342-$348 million. The Zacks Consensus Estimate for the same currently stands at $344.9 million.
The adjusted earnings per share (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 2 cents.
Our Take
AngioDynamics exited the first quarter of fiscal 2023 with lower-than-expected results. Dismal bottom-line performance and decline in Med Device revenues are concerning. The gross margin contraction and adjusted operating loss incurred during the quarter are not encouraging. AngioDynamics continues to face various macro-related headwinds, including persistent inflation, and hospital staffing and procedural pressures, which raise our apprehension.
On the positive side, the company continued gaining from its Med Tech business. Its year-over-year uptick in revenues and solid domestic and international revenues are impressive. Robust mechanical thrombectomy revenue, which includes AngioVac and AlphaVac sales as well as strong thrombus management revenue led by strength in Uni-Fuse is also promising.
During the fiscal first quarter, AngioDynamics confirmed its launch of Auryon catheter line extensions providing enhanced usability. In September, the company also received regulatory clearance for a hydrophilic-coated catheter. These developments raise optimism regarding the stock.
Zacks Rank & Stocks to Consider
AngioDynamics currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space that are supposed to report earnings soon are Abiomed, Inc. , Globus Medical, Inc. (GMED - Free Report) and AMN Healthcare Services, Inc. (AMN - Free Report) .
The Zacks Consensus Estimate for Abiomed’s second quarter fiscal 2023 adjusted EPS is currently pegged at $1.03. The consensus estimate for revenues is pinned at $273.4 million. Abiomed currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Abiomed projects 25% growth for the next five years. ABMD’s earnings yield of 1.9% compares favorably with the industry’s negative yield.
Globus Medical currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its third-quarter 2022 adjusted EPS is currently pegged at 56 cents. The same for revenues is pinned at $252.6 million.
Globus Medical has an estimated long-term growth rate of 11.2%. GMED’s earnings yield of 3.5% compares favorably with the industry’s negative yield.
AMN Healthcare currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter 2022 adjusted EPS is currently pegged at $2.33. The same for its revenues stands at $1.09 billion.
AMN Healthcare has an estimated long-term growth rate of 3.2%. AMN’s earnings yield of 10.1% compares favorably with the industry’s negative yield.