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AngioDynamics Stock Up on Q3 Earnings Beat, Gross Margin Expands
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AngioDynamics, Inc. (ANGO - Free Report) reported an adjusted earnings per share (EPS) of 3 cents for third-quarter fiscal 2025, narrower than the year-ago quarter’s adjusted loss per share of 16 cents and the Zacks Consensus Estimate of a loss of 13 cents.
On a pro-forma basis (excluding the divested Dialysis and BioSentry businesses, the divested PICC and Midline product portfolios and the discontinued Radiofrequency and Syntrax products), adjusted loss per share for third-quarter fiscal 2025 was 8 cents, narrower than 16 cents reported in the year-ago quarter.
GAAP loss per share was 11 cents, narrower than the year-ago period’s loss per share of $4.67.
On a pro-forma basis, the fiscal third-quarter GAAP loss per share was 24 cents, narrower than the loss per share of $4.67 a year ago.
ANGO’s Revenue Details
Revenues in the fiscal third quarter totaled $72 million, down 4.2% year over year on a reported basis and 4% at a constant exchange rate (CER). The top line outpaced the Zacks Consensus Estimate by 2%.
On a pro forma basis, net sales were $72 million, up 9.2% and 9.4% on a reported basis and at CER, respectively, from 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.
Shares of this company gained nearly 12.4% at the end of yesterday’s trading.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
AngioDynamics’ Geographical Analysis
In the quarter under review, U.S. net revenues totaled $61.3 million, down 1.6% year over year. This figure compares to our U.S. net revenues’ fiscal third-quarter projection of $60 million.
On a pro forma basis, U.S. net revenues also totaled $61.3 million, up 9.9% year over year. International revenues came in at $10.7 million, down 16.9% and 15.8% from the year-ago quarter on a reported basis and at CER, respectively. This figure compares to our fiscal third-quarter International revenues’ projection of $11.1 million.
On a pro forma basis, International revenues also totaled $10.7 million, up 5.1% year over year.
ANGO’s Segmental Analysis
AngioDynamics derives revenues from two businesses — Med Tech and Med Device.
The Med Tech business’ net sales in the fiscal third quarter were $31.3 million, reflecting an uptick of 21.3% year over year. This figure compares to our fiscal third-quarter Med Tech business’ net sales projection of $25.6 million.
On a pro forma basis, Med Tech revenues also totaled $31.3 million, up 22.2% year over year. This figure compares to our fiscal third-quarter Med Tech business’ net sales projection of $25.6 million.
The rise was primarily on the back of increased net sales of Auryon amounting to $13.9 million (up 17.3% year over year), AngioVac sales of $6.3 million (up 23.1% year over year), AlphaVac sales of $3 million (up 161.4% year over year) and NanoKnife disposable sales of $4.9 million (up 16.2% year over year). Total NanoKnife sales, including capital, were $6.3 million, up 5.3% from the prior-year quarter.
Med Device revenues in the fiscal third quarter grossed $40.7 million, down 17.6% from the year-ago period. This figure compares to our fiscal third-quarter Med Device business’ net sales projection of $45.5 million.
On a pro forma basis, Med Device revenues also totaled $40.7 million, up 0.9% from the year-ago period. This figure compares to our fiscal third-quarter Med Device business’ net sales projection of $45.5 million.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
In the quarter under review, AngioDynamics’ pro forma gross profit rose 15.4% year over year to $38.9 million. The pro forma gross margin expanded 290 basis points to 54%. We had projected 51.6% of pro forma gross margin for third-quarter fiscal 2025.
Sales and marketing expenses on a pro forma basis increased 7.9% to $25.5 million year over year. Research and development expenses on a pro forma basis decreased 14.4% year over year to $6.9 million, whereas general and administrative expenses on a pro forma basis decreased 1% year over year to $10.5 million. On a pro forma basis, adjusted total operating expenses of $42.9 million increased 1.4% year over year.
Total adjusted operating loss on a pro forma basis totaled $9.8 million compared with the prior-year quarter’s loss of $10 million.
ANGO’s Cash Position
AngioDynamics exited third-quarter fiscal 2025 with cash and cash equivalents of $44.8 million compared with $54.1 million at the fiscal second-quarter end.
The company ended the quarter with no debt on its balance sheet.
Cumulative net cash used in operating activities was $28.9 million compared with $33.2 million a year ago.
AngioDynamics’ FY25 Guidance
AngioDynamics has revised its guidance for fiscal 2025.
The company now expects net sales in the range of $285 million-$288 million, representing growth of 5.3-6.4% from the comparable fiscal 2024 period. The Zacks Consensus Estimate is currently pegged at $285.5 million.
AngioDynamics now expects Med Tech revenue growth in the range of 14-16%, up from the earlier growth projection of 12-15% a year ago.
Med Device revenue growth is projected to be flat.
The adjusted loss per share is now projected to be between 31 cents and 34 cents, narrower than the earlier projection of an adjusted loss of 34 cents to 38 cents. The Zacks Consensus Estimate is currently pegged at a loss of 37 cents per share.
Our Take
AngioDynamics exited the third quarter of fiscal 2025 with better-than-expected results, wherein both revenues and earnings topped their respective estimates. It registered earnings per share on a reported basis, which bodes well. The uptick in overall revenues, U.S. net revenues, Med Tech revenues (all on pro-forma basis) and Med Tech revenues on a reported basis looked promising. Robust Auryon, AngioVac, AlphaVac and NanoKnife disposable sales were also recorded during the quarter. The pro-forma gross margin expansion also bodes well for the stock.
However, the company’s total revenues and U.S. net revenues were down on a reported basis, while International revenues were down on both reported and CER basis in the quarter. ANGO also registered an adjusted loss per share on a pro-forma basis. Med Device revenues were also down on a reported basis. The rise in adjusted operating expenses and continued loss at the operational levels also raise concerns.
ANGO’s Zacks Rank & Key Picks
AngioDynamics currently carries a Zacks Rank #3 (Hold).
Masimo’s shares have rallied 30.1% in the past year. Estimates for MASI’s 2024 earnings per share (EPS) have increased 1.2% to $4.10 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.1%. In the last reported quarter, it posted an earnings surprise of 16.6%.
Estimates for Boston Scientific’s 2025 EPS have jumped 2.9% to $2.85 in the past 30 days. Shares of the company have surged 56.7% in the past year compared with the industry’s growth of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%. In the last reported quarter, it delivered an earnings surprise of 7.69%.
Estimates for Cardinal Health’s fiscal 2025 EPS have increased 1.5% to $7.94 in the past 30 days. Shares of the company have gained 15.2% in the past year against the industry’s 4.1% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. In the last reported quarter, it delivered an earnings surprise of 10.3%.
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AngioDynamics Stock Up on Q3 Earnings Beat, Gross Margin Expands
AngioDynamics, Inc. (ANGO - Free Report) reported an adjusted earnings per share (EPS) of 3 cents for third-quarter fiscal 2025, narrower than the year-ago quarter’s adjusted loss per share of 16 cents and the Zacks Consensus Estimate of a loss of 13 cents.
On a pro-forma basis (excluding the divested Dialysis and BioSentry businesses, the divested PICC and Midline product portfolios and the discontinued Radiofrequency and Syntrax products), adjusted loss per share for third-quarter fiscal 2025 was 8 cents, narrower than 16 cents reported in the year-ago quarter.
GAAP loss per share was 11 cents, narrower than the year-ago period’s loss per share of $4.67.
On a pro-forma basis, the fiscal third-quarter GAAP loss per share was 24 cents, narrower than the loss per share of $4.67 a year ago.
ANGO’s Revenue Details
Revenues in the fiscal third quarter totaled $72 million, down 4.2% year over year on a reported basis and 4% at a constant exchange rate (CER). The top line outpaced the Zacks Consensus Estimate by 2%.
On a pro forma basis, net sales were $72 million, up 9.2% and 9.4% on a reported basis and at CER, respectively, from 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.
Shares of this company gained nearly 12.4% at the end of yesterday’s trading.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
AngioDynamics’ Geographical Analysis
In the quarter under review, U.S. net revenues totaled $61.3 million, down 1.6% year over year. This figure compares to our U.S. net revenues’ fiscal third-quarter projection of $60 million.
On a pro forma basis, U.S. net revenues also totaled $61.3 million, up 9.9% year over year.
International revenues came in at $10.7 million, down 16.9% and 15.8% from the year-ago quarter on a reported basis and at CER, respectively. This figure compares to our fiscal third-quarter International revenues’ projection of $11.1 million.
On a pro forma basis, International revenues also totaled $10.7 million, up 5.1% year over year.
ANGO’s Segmental Analysis
AngioDynamics derives revenues from two businesses — Med Tech and Med Device.
The Med Tech business’ net sales in the fiscal third quarter were $31.3 million, reflecting an uptick of 21.3% year over year. This figure compares to our fiscal third-quarter Med Tech business’ net sales projection of $25.6 million.
On a pro forma basis, Med Tech revenues also totaled $31.3 million, up 22.2% year over year. This figure compares to our fiscal third-quarter Med Tech business’ net sales projection of $25.6 million.
The rise was primarily on the back of increased net sales of Auryon amounting to $13.9 million (up 17.3% year over year), AngioVac sales of $6.3 million (up 23.1% year over year), AlphaVac sales of $3 million (up 161.4% year over year) and NanoKnife disposable sales of $4.9 million (up 16.2% year over year). Total NanoKnife sales, including capital, were $6.3 million, up 5.3% from the prior-year quarter.
Med Device revenues in the fiscal third quarter grossed $40.7 million, down 17.6% from the year-ago period. This figure compares to our fiscal third-quarter Med Device business’ net sales projection of $45.5 million.
On a pro forma basis, Med Device revenues also totaled $40.7 million, up 0.9% from the year-ago period. This figure compares to our fiscal third-quarter Med Device business’ net sales projection of $45.5 million.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
AngioDynamics, Inc. price-consensus-eps-surprise-chart | AngioDynamics, Inc. Quote
AngioDynamics’ Margin Analysis
In the quarter under review, AngioDynamics’ pro forma gross profit rose 15.4% year over year to $38.9 million. The pro forma gross margin expanded 290 basis points to 54%. We had projected 51.6% of pro forma gross margin for third-quarter fiscal 2025.
Sales and marketing expenses on a pro forma basis increased 7.9% to $25.5 million year over year. Research and development expenses on a pro forma basis decreased 14.4% year over year to $6.9 million, whereas general and administrative expenses on a pro forma basis decreased 1% year over year to $10.5 million. On a pro forma basis, adjusted total operating expenses of $42.9 million increased 1.4% year over year.
Total adjusted operating loss on a pro forma basis totaled $9.8 million compared with the prior-year quarter’s loss of $10 million.
ANGO’s Cash Position
AngioDynamics exited third-quarter fiscal 2025 with cash and cash equivalents of $44.8 million compared with $54.1 million at the fiscal second-quarter end.
The company ended the quarter with no debt on its balance sheet.
Cumulative net cash used in operating activities was $28.9 million compared with $33.2 million a year ago.
AngioDynamics’ FY25 Guidance
AngioDynamics has revised its guidance for fiscal 2025.
The company now expects net sales in the range of $285 million-$288 million, representing growth of 5.3-6.4% from the comparable fiscal 2024 period. The Zacks Consensus Estimate is currently pegged at $285.5 million.
AngioDynamics now expects Med Tech revenue growth in the range of 14-16%, up from the earlier growth projection of 12-15% a year ago.
Med Device revenue growth is projected to be flat.
The adjusted loss per share is now projected to be between 31 cents and 34 cents, narrower than the earlier projection of an adjusted loss of 34 cents to 38 cents. The Zacks Consensus Estimate is currently pegged at a loss of 37 cents per share.
Our Take
AngioDynamics exited the third quarter of fiscal 2025 with better-than-expected results, wherein both revenues and earnings topped their respective estimates. It registered earnings per share on a reported basis, which bodes well. The uptick in overall revenues, U.S. net revenues, Med Tech revenues (all on pro-forma basis) and Med Tech revenues on a reported basis looked promising. Robust Auryon, AngioVac, AlphaVac and NanoKnife disposable sales were also recorded during the quarter. The pro-forma gross margin expansion also bodes well for the stock.
However, the company’s total revenues and U.S. net revenues were down on a reported basis, while International revenues were down on both reported and CER basis in the quarter. ANGO also registered an adjusted loss per share on a pro-forma basis. Med Device revenues were also down on a reported basis. The rise in adjusted operating expenses and continued loss at the operational levels also raise concerns.
ANGO’s Zacks Rank & Key Picks
AngioDynamics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Masimo (MASI - Free Report) , Boston Scientific (BSX - Free Report) and Cardinal Health (CAH - Free Report) . At present, Masimo sports a Zacks Rank #1 (Strong Buy), whereas Boston Scientific and Cardinal Health carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s shares have rallied 30.1% in the past year. Estimates for MASI’s 2024 earnings per share (EPS) have increased 1.2% to $4.10 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.1%. In the last reported quarter, it posted an earnings surprise of 16.6%.
Estimates for Boston Scientific’s 2025 EPS have jumped 2.9% to $2.85 in the past 30 days. Shares of the company have surged 56.7% in the past year compared with the industry’s growth of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%. In the last reported quarter, it delivered an earnings surprise of 7.69%.
Estimates for Cardinal Health’s fiscal 2025 EPS have increased 1.5% to $7.94 in the past 30 days. Shares of the company have gained 15.2% in the past year against the industry’s 4.1% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. In the last reported quarter, it delivered an earnings surprise of 10.3%.