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Shares of AngioDynamics Inc. (ANGO - Free Report) rallied almost 10% to close at $15.94 on Jul 13, after the company reported impressive fourth quarter fiscal 2016 results. Adjusted earnings of 19 cents per share beat the Zacks Consensus Estimate by 3 cents and surged 35.7% from the year-ago quarter.
AngioDynamics reported sales of $93.4 million, which beat the Zacks Consensus Estimate of $89 million and increased 2.7% on a year-over-year basis.
On a constant currency (cc) basis, the U.S. sales increased 4% to almost $75 million. International sales totaled $17.6 million, down 1% year over yearat cc.
AngioDynamics reported earnings of 58 cents per share on sales of $353.7 million in fiscal 2016. Although earnings remained flat on a year-over-year basis, sales declined 0.9%.
Peripheral Vascular (PV) business sales recorded an increase of 10% year over year to $54.8 million. The growth was primarily driven by the successful launches of Asclera Varicose and Spider Vein treatments, accompanied by the remarkable increase of 6% in the laser procedure kit sales.
However, there was a significant decline of 13% in Angiovac Sales compared to the year-ago quarter.
The Vascular Access business unit reported sales of $24.8 million, highlighting a decrease of 8% from the year-ago quarter. Notably, BioFlo sales represented 43% of net sales at the vascular Access segment, up 39% from a year ago.
Meanwhile, the company decided to discontinue the Celerity tip location program under its Vascular segment because of the delayed FDA clearance and high inventory charges associated with it.
Sales at the Oncology/Surgery business was flat at almost $13 million with the year-ago figure. Notably, Nanoknife reported net sales of $2.4 million in China. However, the product is yet to get registered in Japan which promises business worth a million going forward.
At the Microwave section, AngioDynamics witnessed growth of 9% worldwide; including 22% in the U.S. The company is set to introduce its next-gen Microwave product SOLERO in the near future.
Margin Details
Adjusted gross margin expanded 90 basis points (bps) to 50.8% in the quarter excluding the $5.9 million of inventory charges related to Celerity.
Adjusted EBITDA margin expanded 30 bps to 14.9% in the fourth quarter.
Operating expenses (excluding one-time items) as percentage of revenues decreased 170 bps to 37.5%. The decline was primarily attributed to lower general & administrative (G&A), sales & marketing (S&M) and research & development (R&D) expenses, which declined 100 bps, 10 bps and 60 bps, respectively.
As a result, operating margin expanded 260 bps on a year-over-year basis to 13.3%.
Guidance
AngioDynamics forecasts first-quarter 2017 sales in the range of $84 million to $87 million. Adjusted earnings are expected to be in the band of 11 cents to 14 cents per share.
For full-year 2017, AngioDynamics expect sales in the range of $355 million to $360 million. At mid-point, this range reflects a year-over-year growth of 1%.
Adjusted earnings are forecasted to be in the range 62 cents to 65 cents per share, which reflects almost 9.5% growth from fiscal 2016.
AngioDynamics expects gross margin of 51% for fiscal 2017, which is slightly better than fiscal 2016 figure. The company also anticipates an excess of $30 million in cash.
Our Take
We believe that an expanding portfolio that includes the likes of Asclera, Bioflo and NanoKnife significantly enhances AngioDynamics’ market opportunities. The company continues to enjoy healthy demand for its coveted NanoKnife system for treating tumors across China and Japan.
The launch of SOLERO in the microwave sector is also expected to bode well for the company. However, the discontinuity of Celerity and a dip in Vascular access sales might dent the operational efficiency of the company over the long haul.
Zacks Rank and Key Picks
Currently, AngioDynamics carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the medical space are ABIOMED Inc , Masimo Corporation (MASI - Free Report) and Mesa Laboratories Inc. (MLAB - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy).
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AngioDynamics (ANGO) Tops Q4 Earnings, '17 View Positive
Shares of AngioDynamics Inc. (ANGO - Free Report) rallied almost 10% to close at $15.94 on Jul 13, after the company reported impressive fourth quarter fiscal 2016 results. Adjusted earnings of 19 cents per share beat the Zacks Consensus Estimate by 3 cents and surged 35.7% from the year-ago quarter.
AngioDynamics reported sales of $93.4 million, which beat the Zacks Consensus Estimate of $89 million and increased 2.7% on a year-over-year basis.
On a constant currency (cc) basis, the U.S. sales increased 4% to almost $75 million. International sales totaled $17.6 million, down 1% year over yearat cc.
AngioDynamics reported earnings of 58 cents per share on sales of $353.7 million in fiscal 2016. Although earnings remained flat on a year-over-year basis, sales declined 0.9%.
Segment Details
Peripheral Vascular (PV) business sales recorded an increase of 10% year over year to $54.8 million. The growth was primarily driven by the successful launches of Asclera Varicose and Spider Vein treatments, accompanied by the remarkable increase of 6% in the laser procedure kit sales.
However, there was a significant decline of 13% in Angiovac Sales compared to the year-ago quarter.
The Vascular Access business unit reported sales of $24.8 million, highlighting a decrease of 8% from the year-ago quarter. Notably, BioFlo sales represented 43% of net sales at the vascular Access segment, up 39% from a year ago.
Meanwhile, the company decided to discontinue the Celerity tip location program under its Vascular segment because of the delayed FDA clearance and high inventory charges associated with it.
Sales at the Oncology/Surgery business was flat at almost $13 million with the year-ago figure. Notably, Nanoknife reported net sales of $2.4 million in China. However, the product is yet to get registered in Japan which promises business worth a million going forward.
At the Microwave section, AngioDynamics witnessed growth of 9% worldwide; including 22% in the U.S. The company is set to introduce its next-gen Microwave product SOLERO in the near future.
Margin Details
Adjusted gross margin expanded 90 basis points (bps) to 50.8% in the quarter excluding the $5.9 million of inventory charges related to Celerity.
Adjusted EBITDA margin expanded 30 bps to 14.9% in the fourth quarter.
ANGIODYNAMICS Price, Consensus and EPS Surprise
ANGIODYNAMICS Price, Consensus and EPS Surprise | ANGIODYNAMICS Quote
Operating expenses (excluding one-time items) as percentage of revenues decreased 170 bps to 37.5%. The decline was primarily attributed to lower general & administrative (G&A), sales & marketing (S&M) and research & development (R&D) expenses, which declined 100 bps, 10 bps and 60 bps, respectively.
As a result, operating margin expanded 260 bps on a year-over-year basis to 13.3%.
Guidance
AngioDynamics forecasts first-quarter 2017 sales in the range of $84 million to $87 million. Adjusted earnings are expected to be in the band of 11 cents to 14 cents per share.
For full-year 2017, AngioDynamics expect sales in the range of $355 million to $360 million. At mid-point, this range reflects a year-over-year growth of 1%.
Adjusted earnings are forecasted to be in the range 62 cents to 65 cents per share, which reflects almost 9.5% growth from fiscal 2016.
AngioDynamics expects gross margin of 51% for fiscal 2017, which is slightly better than fiscal 2016 figure. The company also anticipates an excess of $30 million in cash.
Our Take
We believe that an expanding portfolio that includes the likes of Asclera, Bioflo and NanoKnife significantly enhances AngioDynamics’ market opportunities. The company continues to enjoy healthy demand for its coveted NanoKnife system for treating tumors across China and Japan.
The launch of SOLERO in the microwave sector is also expected to bode well for the company. However, the discontinuity of Celerity and a dip in Vascular access sales might dent the operational efficiency of the company over the long haul.
Zacks Rank and Key Picks
Currently, AngioDynamics carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the medical space are ABIOMED Inc , Masimo Corporation (MASI - Free Report) and Mesa Laboratories Inc. (MLAB - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>