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AngioDynamics (ANGO) Down 3.1% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for AngioDynamics (ANGO - Free Report) . Shares have lost about 3.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is AngioDynamics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
AngioDynamics Q4 Earnings Top Estimates, Gross Margin Down
AngioDynamics reported an adjusted loss per share of 6 cents for fourth-quarter fiscal 2024, against the year-ago quarter’s adjusted earnings per share 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.
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.
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.
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.
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.
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%.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 26.67% due to these changes.
VGM Scores
At this time, AngioDynamics has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise AngioDynamics has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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AngioDynamics (ANGO) Down 3.1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for AngioDynamics (ANGO - Free Report) . Shares have lost about 3.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is AngioDynamics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
AngioDynamics Q4 Earnings Top Estimates, Gross Margin Down
AngioDynamics reported an adjusted loss per share of 6 cents for fourth-quarter fiscal 2024, against the year-ago quarter’s adjusted earnings per share 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.
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.
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.
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.
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.
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%.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 26.67% due to these changes.
VGM Scores
At this time, AngioDynamics has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise AngioDynamics has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.