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AngioDynamics (ANGO) Q4 Earnings Top Estimates, Gross Margin Down
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AngioDynamics, Inc. (ANGO - Free Report) reported an adjusted loss per share of 6 cents for fourth-quarter fiscal 2024, against the year-ago quarter’s adjusted earnings per share (EPS) of 2 cents per share. However, the metric was narrower than the Zacks Consensus Estimate of a loss of 20 cents per share.
On a pro-forma basis (excluding Dialysis and BioSentry businesses, the divested PICC, Midline, and tip location product portfolios and the discontinued RadioFrequency and Syntrax support catheter products), adjusted loss per share in fourth-quarter fiscal 2024 was 5 cents, narrower than 11 cents reported in the year-ago period.
GAAP loss per share was 33 cents, narrower than the year-ago period’s 54 cents.
On a pro-forma basis, the GAAP loss per share in fourth-quarter fiscal 2024 was 33 cents, narrower than 66 cents in the prior-year period.
Full-year fiscal 2024 adjusted loss per share was 38 cents, wider than 6 cents at the end of the comparable fiscal 2023 period. However, the figure was narrower than the Zacks Consensus Estimate of a loss of 57 cents per share.
On a pro-forma basis, the full-year fiscal 2024 adjusted loss per share was 45 cents, narrower than 55 cents at the end of the comparable fiscal 2023 period.
Revenue Details
Revenues in the fiscal fourth quarter totaled $70.9 million, down 22.1% year over year both on a reported basis and at constant exchange rate (CER). The top line topped the Zacks Consensus Estimate by 0.2%.
On a pro forma basis, net sales were $71.1 million, up 1.9% both on a reported basis and at CER compared with the prior-year quarter.
The company continued to see strong contributions from its Med Tech (which includes the Auryon peripheral atherectomy platform, the thrombus management platform and the NanoKnife irreversible electroporation platform) business during the quarter.
Full-year fiscal 2024 revenues were $303.9 million, reflecting a 10.3% decline both on a reported basis and at CER from the comparable fiscal 2023 period. The figure topped the Zacks Consensus Estimate by 5.9%.
On a pro forma basis, full-year fiscal 2024 revenues were $270.7 million, reflecting a 5.3% uptick both on a reported basis and at CER from the comparable fiscal 2023 period.
Geographical Analysis
In the quarter under review, U.S. net revenues totaled $60.7 million, down 18.4% year over year. This figure compares to our U.S. net revenues’ fiscal fourth-quarter projection of $34.3 million.
On a pro forma basis, U.S. net revenues totaled $60.8 million, up 4.3%.
International revenues came in at $10.2 million, down 38.5% from the year-ago quarter, both on a reported basis and at CER. This figure compares to our fiscal fourth-quarter International revenues’ projection of $7.6 million.
On a pro forma basis, International revenues totaled $10.3 million, down 9.9%.
Segmental Analysis
AngioDynamics derives revenues from two businesses — Med Tech and Med Device.
The Med Tech business’ net sales in the fiscal fourth quarter were $29.3 million, reflecting an uptick of 10.7% year over year. This figure compares to our fiscal fourth quarter’s Med Tech business’ net sales projection of $29.5 million.
On a pro forma basis, Med Tech revenues totaled $29.3 million, up 11.3%. This was primarily on the back of increased net sales of Auryon amounting to $13 million (up 12%) compared with the prior-year quarter. NanoKnife disposable sales were $5.4 million (up 18% year over year), while AlphaVac sales were $1.9 million (up 6.8% year over year). However, the improvement in the Med Tech segment was partially offset by a year-over-year decline of 2% in the mechanical thrombectomy business and a decline of 4% in AngioVac sales.
Med Device revenues in the fiscal fourth quarter grossed $41.7 million, down 35.5% from the year-ago period. This figure compares to our fiscal fourth quarter’s Med Device business’ net sales projection of $12.4 million.
On a pro forma basis, Med Device revenues totaled $41.8 million, down 3.8%. This resulted from the impacts of AngioDynamics’ reorganization following the PICC and Midline divestiture (closed in February 2024) and the anticipated headwinds stemming from the company’s manufacturing reorganization that was launched in January.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
In the quarter under review, AngioDynamics’ pro forma gross profit rose 1.9% to $38.6 million. However, the pro forma gross margin contracted 3 basis points to 54.3%. We had projected 59.2% of pro forma gross margin for fourth-quarter fiscal 2024.
Sales and marketing expenses on a pro forma basis increased 0.3% to $24.6 million year over year. Research and development expenses on a pro forma basis decreased 11.9% year over year to $6.7 million, whereas general and administrative expenses on a pro forma basis increased 1.5% year over year to $10.4 million. On a pro forma basis, adjusted operating expenses of $41.7 million decreased 1.6% year over year.
The adjusted operating loss on a pro forma basis totaled $3.1 million compared with the prior-year quarter’s $4.5 million.
Cash Position
AngioDynamics exited fiscal 2024 with cash and cash equivalents of $76.1 million compared with $44.6 million at the fiscal 2023-end.
The company ended the quarter with no debt on its balance sheet.
Cumulative net cash used in operating activities was $28.2 million against cumulative net cash provided by operating activities of $0.1 million a year ago.
FY25 Guidance
AngioDynamics has initiated its guidance for fiscal 2025.
The company expects net sales in the range of $282 million-$288 million, representing growth of 4.2-6.4% over the comparable fiscal 2024 period. The Zacks Consensus Estimate is currently pegged at $286.4 million.
AngioDynamics expects its Med Tech revenue growth in the range of 10-12%, while Med Device revenue growth is projected at 1-3% over the comparable fiscal 2024 period.
The adjusted loss per share is projected to be between 38 cents and 42 cents. The Zacks Consensus Estimate currently stands at a loss of 60 cents per share.
Our Take
AngioDynamics exited the fourth quarter of fiscal 2024 with dismal bottom-line results. It registered a loss per share both on a reported and pro-forma basis in the quarter, which is disappointing. The company’s total revenues and U.S. net revenues were down on a reported basis, while International revenues were down both on a reported and pro-forma basis in the quarter. Med Device revenues also declined during the quarter both on a reported and pro-forma basis. The pro-forma gross margin contraction does not bode well.
However, AngioDynamics’ narrower-than-expected adjusted loss per share and better-than-expected revenues in the fiscal fourth quarter raise optimism. The company recorded a narrower adjusted loss per share on a pro-forma basis and GAAP loss per share both on a reported and pro-forma basis in the quarter, which is encouraging. The uptick in overall revenues, U.S. net revenues and Med Tech revenues (all on pro-forma basis) and Med Tech revenues on a reported basis looked promising. Robust Auryon and NanoKnife disposable sales were also recorded during the quarter.
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 Boston Scientific Corporation (BSX - Free Report) , Globus Medical, Inc. (GMED - Free Report) and Cencora, Inc. (COR - Free Report) .
The Zacks Consensus Estimate for Boston Scientific’s second-quarter 2024 adjusted EPS is currently pegged at 58 cents. The consensus estimate for revenues is pegged at $4.02 billion. BSX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has an estimated long-term growth rate of 12.5%. BSX’s earnings yield of 2.9% compares favorably with the industry’s 0.9%.
Globus Medical currently has a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter 2024 adjusted EPS is currently pegged at 68 cents. The same for revenues is pegged at $615 million.
Globus Medical has an estimated long-term growth rate of 12.7%. GMED’s earnings yield of 3.9% compares favorably with the industry’s negative yield.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter fiscal 2024 adjusted EPS is currently pegged at $3.18. The same for its revenues stands at $73.58 billion.
Cencora has an estimated long-term growth rate of 10.7%. COR’s earnings yield of 5.9% compares favorably with the industry’s 3.2%.
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AngioDynamics (ANGO) Q4 Earnings Top Estimates, Gross Margin Down
AngioDynamics, Inc. (ANGO - Free Report) reported an adjusted loss per share of 6 cents for fourth-quarter fiscal 2024, against the year-ago quarter’s adjusted earnings per share (EPS) of 2 cents per share. However, the metric was narrower than the Zacks Consensus Estimate of a loss of 20 cents per share.
On a pro-forma basis (excluding Dialysis and BioSentry businesses, the divested PICC, Midline, and tip location product portfolios and the discontinued RadioFrequency and Syntrax support catheter products), adjusted loss per share in fourth-quarter fiscal 2024 was 5 cents, narrower than 11 cents reported in the year-ago period.
GAAP loss per share was 33 cents, narrower than the year-ago period’s 54 cents.
On a pro-forma basis, the GAAP loss per share in fourth-quarter fiscal 2024 was 33 cents, narrower than 66 cents in the prior-year period.
Full-year fiscal 2024 adjusted loss per share was 38 cents, wider than 6 cents at the end of the comparable fiscal 2023 period. However, the figure was narrower than the Zacks Consensus Estimate of a loss of 57 cents per share.
On a pro-forma basis, the full-year fiscal 2024 adjusted loss per share was 45 cents, narrower than 55 cents at the end of the comparable fiscal 2023 period.
Revenue Details
Revenues in the fiscal fourth quarter totaled $70.9 million, down 22.1% year over year both on a reported basis and at constant exchange rate (CER). The top line topped the Zacks Consensus Estimate by 0.2%.
On a pro forma basis, net sales were $71.1 million, up 1.9% both on a reported basis and at CER compared with the prior-year quarter.
The company continued to see strong contributions from its Med Tech (which includes the Auryon peripheral atherectomy platform, the thrombus management platform and the NanoKnife irreversible electroporation platform) business during the quarter.
Full-year fiscal 2024 revenues were $303.9 million, reflecting a 10.3% decline both on a reported basis and at CER from the comparable fiscal 2023 period. The figure topped the Zacks Consensus Estimate by 5.9%.
On a pro forma basis, full-year fiscal 2024 revenues were $270.7 million, reflecting a 5.3% uptick both on a reported basis and at CER from the comparable fiscal 2023 period.
Geographical Analysis
In the quarter under review, U.S. net revenues totaled $60.7 million, down 18.4% year over year. This figure compares to our U.S. net revenues’ fiscal fourth-quarter projection of $34.3 million.
On a pro forma basis, U.S. net revenues totaled $60.8 million, up 4.3%.
International revenues came in at $10.2 million, down 38.5% from the year-ago quarter, both on a reported basis and at CER. This figure compares to our fiscal fourth-quarter International revenues’ projection of $7.6 million.
On a pro forma basis, International revenues totaled $10.3 million, down 9.9%.
Segmental Analysis
AngioDynamics derives revenues from two businesses — Med Tech and Med Device.
The Med Tech business’ net sales in the fiscal fourth quarter were $29.3 million, reflecting an uptick of 10.7% year over year. This figure compares to our fiscal fourth quarter’s Med Tech business’ net sales projection of $29.5 million.
On a pro forma basis, Med Tech revenues totaled $29.3 million, up 11.3%. This was primarily on the back of increased net sales of Auryon amounting to $13 million (up 12%) compared with the prior-year quarter. NanoKnife disposable sales were $5.4 million (up 18% year over year), while AlphaVac sales were $1.9 million (up 6.8% year over year). However, the improvement in the Med Tech segment was partially offset by a year-over-year decline of 2% in the mechanical thrombectomy business and a decline of 4% in AngioVac sales.
Med Device revenues in the fiscal fourth quarter grossed $41.7 million, down 35.5% from the year-ago period. This figure compares to our fiscal fourth quarter’s Med Device business’ net sales projection of $12.4 million.
On a pro forma basis, Med Device revenues totaled $41.8 million, down 3.8%. This resulted from the impacts of AngioDynamics’ reorganization following the PICC and Midline divestiture (closed in February 2024) and the anticipated headwinds stemming from the company’s manufacturing reorganization that was launched in January.
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’ pro forma gross profit rose 1.9% to $38.6 million. However, the pro forma gross margin contracted 3 basis points to 54.3%. We had projected 59.2% of pro forma gross margin for fourth-quarter fiscal 2024.
Sales and marketing expenses on a pro forma basis increased 0.3% to $24.6 million year over year. Research and development expenses on a pro forma basis decreased 11.9% year over year to $6.7 million, whereas general and administrative expenses on a pro forma basis increased 1.5% year over year to $10.4 million. On a pro forma basis, adjusted operating expenses of $41.7 million decreased 1.6% year over year.
The adjusted operating loss on a pro forma basis totaled $3.1 million compared with the prior-year quarter’s $4.5 million.
Cash Position
AngioDynamics exited fiscal 2024 with cash and cash equivalents of $76.1 million compared with $44.6 million at the fiscal 2023-end.
The company ended the quarter with no debt on its balance sheet.
Cumulative net cash used in operating activities was $28.2 million against cumulative net cash provided by operating activities of $0.1 million a year ago.
FY25 Guidance
AngioDynamics has initiated its guidance for fiscal 2025.
The company expects net sales in the range of $282 million-$288 million, representing growth of 4.2-6.4% over the comparable fiscal 2024 period. The Zacks Consensus Estimate is currently pegged at $286.4 million.
AngioDynamics expects its Med Tech revenue growth in the range of 10-12%, while Med Device revenue growth is projected at 1-3% over the comparable fiscal 2024 period.
The adjusted loss per share is projected to be between 38 cents and 42 cents. The Zacks Consensus Estimate currently stands at a loss of 60 cents per share.
Our Take
AngioDynamics exited the fourth quarter of fiscal 2024 with dismal bottom-line results. It registered a loss per share both on a reported and pro-forma basis in the quarter, which is disappointing. The company’s total revenues and U.S. net revenues were down on a reported basis, while International revenues were down both on a reported and pro-forma basis in the quarter. Med Device revenues also declined during the quarter both on a reported and pro-forma basis. The pro-forma gross margin contraction does not bode well.
However, AngioDynamics’ narrower-than-expected adjusted loss per share and better-than-expected revenues in the fiscal fourth quarter raise optimism. The company recorded a narrower adjusted loss per share on a pro-forma basis and GAAP loss per share both on a reported and pro-forma basis in the quarter, which is encouraging. The uptick in overall revenues, U.S. net revenues and Med Tech revenues (all on pro-forma basis) and Med Tech revenues on a reported basis looked promising. Robust Auryon and NanoKnife disposable sales were also recorded during the quarter.
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 Boston Scientific Corporation (BSX - Free Report) , Globus Medical, Inc. (GMED - Free Report) and Cencora, Inc. (COR - Free Report) .
The Zacks Consensus Estimate for Boston Scientific’s second-quarter 2024 adjusted EPS is currently pegged at 58 cents. The consensus estimate for revenues is pegged at $4.02 billion. BSX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has an estimated long-term growth rate of 12.5%. BSX’s earnings yield of 2.9% compares favorably with the industry’s 0.9%.
Globus Medical currently has a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter 2024 adjusted EPS is currently pegged at 68 cents. The same for revenues is pegged at $615 million.
Globus Medical has an estimated long-term growth rate of 12.7%. GMED’s earnings yield of 3.9% compares favorably with the industry’s negative yield.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter fiscal 2024 adjusted EPS is currently pegged at $3.18. The same for its revenues stands at $73.58 billion.
Cencora has an estimated long-term growth rate of 10.7%. COR’s earnings yield of 5.9% compares favorably with the industry’s 3.2%.