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Why Is AngioDynamics (ANGO) Up 5.3% Since the Last Earnings Report?
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More than a month has gone by since the last earnings report for AngioDynamics, Inc. (ANGO - Free Report) . Shares have added about 5.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Recent Earnings
AngioDynamics reported adjusted earnings of 12 cents per share in the first quarter of fiscal 2018. Earnings missed the Zacks Consensus Estimate by 4 cents and decreased 29.4% year over year. Meanwhile, net sales fell almost 3.4% on a year-over-year basis to $85.4 million, missing the Zacks Consensus Estimate of $86 million.
It is important to note that foreign exchange did not have any impact in the reported quarter. However, continued softness in the Vascular Access and Venous business affected revenues in the first quarter.
Internationally, AngioDynamics registered revenues of $16.5 million, up from $15.9 million in the year-ago quarter. International growth was strengthened by solid sales from the Oncology and Surgery business. However, the company registered $68.9 million revenues in the United States, down from $72.2 million on a year-over-year basis. The lackluster performance was led by softness in the venous business, which was more or less muted by growth in the oncology portfolio.
Segment Details
Peripheral Vascular (PV) business: Sales at this segment totaled $49.9 million in the reported quarter, lower than $52 million in the year-ago quarter.
The quarter saw slow growth in the venous and core businesses, which was offset by stellar performance in fluid management and thrombus management product lines.
Despite the disappointing performance in the PV segment, management expects the thrombus management platform to lend the company a competitive edge and open up significant long-term opportunities.
We note that AngioDynamics is a leading player in the thrombolytic catheters space (catheter directed thrombolysis). The company boasts highly unique catheters like Uni-Fuse, SpeedLyser and Pulse Spray under the thrombus portfolio.
Vascular Access (VA) business: Sales at this segment were $23.2 million, down from $25 million on a year-over-year basis. However, this was offset by solid growth at BioFlo Midlines and Dialysis.
The BioFlo line of products at the segment is expected to be a key catalyst.
Oncology/Surgery business: AngioDynamics witnessed sales of$12.3 million in the first quarter, up from $11.1 million on a year-over-year basis. The segment performed impressively on the recent launch of Solero Microwave Tissue Ablation System.
Meanwhile, AngioDynamics announced market withdrawal of its flagship Acculis Microwave Tissue Ablation System in the last quarter.
Margin Details
Adjusted gross margin decreased 280 basis points (bps) to 48.3% in the quarter. The decline in gross margin was primarily because of voluntary market withdrawal of the Acculis Microwave Tissue Ablation System in the recent past. Solero's direct impact on gross margins was approximately 90 bps.
Adjusted EBITDAS in the first quarter of fiscal 2018, excluding the items shown in the attached reconciliation table, was $10.6 million compared with $14.2 million in the first quarter of fiscal 2017.
Financial Condition
AngioDynamics had a strong cash flow balance in the first quarter. Per management, the company generated $3 million in operating cash flow and $2.5 million in free cash flow.
Additionally, AngioDynamics ended the quarter with $48.2 million as cash and cash equivalents and outstanding debt of $96.3 million.
Guidance
AngioDynamics reaffirmed its guidance for fiscal 2018.
For fiscal 2018, the company expects adjusted earnings per share in the band of 64 cents to 68 cents.
The company projects fiscal 2018 revenues in the range of $352 million to $359 million.
Furthermore, free cash flow is expected to be more than $35 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the past month as none of them issued any earnings estimate revisions. In the past month, the consensus estimate has shifted down by 5.7%.
Currently, the stock has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. However, 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Why Is AngioDynamics (ANGO) Up 5.3% Since the Last Earnings Report?
More than a month has gone by since the last earnings report for AngioDynamics, Inc. (ANGO - Free Report) . Shares have added about 5.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Recent Earnings
AngioDynamics reported adjusted earnings of 12 cents per share in the first quarter of fiscal 2018. Earnings missed the Zacks Consensus Estimate by 4 cents and decreased 29.4% year over year. Meanwhile, net sales fell almost 3.4% on a year-over-year basis to $85.4 million, missing the Zacks Consensus Estimate of $86 million.
It is important to note that foreign exchange did not have any impact in the reported quarter. However, continued softness in the Vascular Access and Venous business affected revenues in the first quarter.
Internationally, AngioDynamics registered revenues of $16.5 million, up from $15.9 million in the year-ago quarter. International growth was strengthened by solid sales from the Oncology and Surgery business. However, the company registered $68.9 million revenues in the United States, down from $72.2 million on a year-over-year basis. The lackluster performance was led by softness in the venous business, which was more or less muted by growth in the oncology portfolio.
Segment Details
Peripheral Vascular (PV) business: Sales at this segment totaled $49.9 million in the reported quarter, lower than $52 million in the year-ago quarter.
The quarter saw slow growth in the venous and core businesses, which was offset by stellar performance in fluid management and thrombus management product lines.
Despite the disappointing performance in the PV segment, management expects the thrombus management platform to lend the company a competitive edge and open up significant long-term opportunities.
We note that AngioDynamics is a leading player in the thrombolytic catheters space (catheter directed thrombolysis). The company boasts highly unique catheters like Uni-Fuse, SpeedLyser and Pulse Spray under the thrombus portfolio.
Vascular Access (VA) business: Sales at this segment were $23.2 million, down from $25 million on a year-over-year basis. However, this was offset by solid growth at BioFlo Midlines and Dialysis.
The BioFlo line of products at the segment is expected to be a key catalyst.
Oncology/Surgery business: AngioDynamics witnessed sales of$12.3 million in the first quarter, up from $11.1 million on a year-over-year basis. The segment performed impressively on the recent launch of Solero Microwave Tissue Ablation System.
Meanwhile, AngioDynamics announced market withdrawal of its flagship Acculis Microwave Tissue Ablation System in the last quarter.
Margin Details
Adjusted gross margin decreased 280 basis points (bps) to 48.3% in the quarter. The decline in gross margin was primarily because of voluntary market withdrawal of the Acculis Microwave Tissue Ablation System in the recent past. Solero's direct impact on gross margins was approximately 90 bps.
Adjusted EBITDAS in the first quarter of fiscal 2018, excluding the items shown in the attached reconciliation table, was $10.6 million compared with $14.2 million in the first quarter of fiscal 2017.
Financial Condition
AngioDynamics had a strong cash flow balance in the first quarter. Per management, the company generated $3 million in operating cash flow and $2.5 million in free cash flow.
Additionally, AngioDynamics ended the quarter with $48.2 million as cash and cash equivalents and outstanding debt of $96.3 million.
Guidance
AngioDynamics reaffirmed its guidance for fiscal 2018.
For fiscal 2018, the company expects adjusted earnings per share in the band of 64 cents to 68 cents.
The company projects fiscal 2018 revenues in the range of $352 million to $359 million.
Furthermore, free cash flow is expected to be more than $35 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the past month as none of them issued any earnings estimate revisions. In the past month, the consensus estimate has shifted down by 5.7%.
AngioDynamics, Inc. Price and Consensus
AngioDynamics, Inc. Price and Consensus | AngioDynamics, Inc. Quote
VGM Scores
Currently, the stock has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. However, 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.