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AngioDynamics (ANGO) Q3 Earnings and Revenues Miss Estimates
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AngioDynamics, Inc. (ANGO - Free Report) reported an adjusted loss per share of 16 cents for third-quarter fiscal 2024, wider than the year-ago loss of 3 cents per share and the Zacks Consensus Estimate of a loss of 14 cents per share.
On a pro-forma basis (excluding Dialysis and BioSentry businesses, the divested PICC and Midline product portfolios and the discontinued Uniblate, Starburst and Syntrax products), adjusted loss per share in third-quarter fiscal 2024 was also 16 cents, wider than the adjusted loss per share of 14 cents in the year-ago period.
GAAP loss per share was $4.73, wider than the year-ago period’s loss per share of 24 cents.
On a pro-forma basis, the GAAP loss per share in third-quarter fiscal 2024 was also $4.73, wider than the GAAP loss per share of 35 cents in the prior-year period.
Revenue Details
Revenues in the fiscal third quarter totaled $75.2 million, down 6.9% year over year both on a reported basis and at constant exchange rate (CER). The top line missed the Zacks Consensus Estimate by 1.9%.
On a pro forma basis, net sales were $65.9 million, up 7.9% 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.
Geographical Analysis
In the quarter under review, U.S. net revenues totaled $62.3 million, down 7.8% year over year. This figure compares to our U.S. net revenues’ fiscal third-quarter projection of $64 million.
On a pro forma basis, U.S. net revenues totaled $55.8 million, up 5.9%.
International revenues came in at $12.8 million, down 1.9% from the year-ago quarter, both on a reported basis and at CER. This figure compares to our fiscal third-quarter International revenues’ projection of $14 million.
On a pro forma basis, International revenues totaled $10.2 million, up 20.8%.
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 $25.8 million, reflecting an uptick of 12.9% year over year. This figure compares to our fiscal third quarter’s Med Tech business’ net sales projection of $19.9 million.
On a pro forma basis, Med Tech revenues totaled $25.7 million, up 12.6%. This was primarily on the back of increased net sales of Auryon amounting to $11.8 million (up 14.7%) and NanoKnife sales of $6 million (up 46.7%) compared with the prior-year quarter. NanoKnife disposable sales were $4.2 million (up 19.8% year over year), while AngioVac sales were $5.5 million. However, the improvement in the Med Tech segment was partially offset by a year-over-year decline of 45% in AlphaVac sales (which amounted to $1.1 million in the quarter).
Med Device revenues in the fiscal third quarter grossed $49.3 million, down 14.7% from the year-ago period. This figure compares to our fiscal third quarter’s Med Device business’ net sales projection of $58.1 million.
On a pro forma basis, Med Device revenues totaled $40.3 million, up 5.2%. This was driven by AngioDynamics’ EVLT and angiographic catheter products.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
In the quarter under review, AngioDynamics’ pro forma gross profit rose 2.2% to $33.7 million. However, the pro forma gross margin contracted 292 basis points to 51.1%.
Sales and marketing expenses on a pro forma basis decreased 1.5% to $23.6 million year over year. Research and development expenses on a pro forma basis increased 20.2% year over year to $8.1 million, whereas general and administrative expenses on a pro forma basis increased 24.2% year over year to $10.6 million. On a pro forma basis, adjusted operating expenses of $42.3 million increased 7.8% year over year.
The adjusted operating loss on a pro forma basis totaled $8.6 million compared with the prior-year quarter’s adjusted operating loss of $6.3 million.
Cash Position
AngioDynamics exited third-quarter fiscal 2024 with cash and cash equivalents of $78.5 million compared with $60.9 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 $33.2 million compared with $15.9 million a year ago.
FY24 Guidance
AngioDynamics has revised its guidance for fiscal 2024.
The company now expects its net sales in the range of $270 million-$275 million, lower than the earlier outlook of $320 million-$325 million. The Zacks Consensus Estimate is currently pegged at $320.7 million.
The lowered guidance reflects the recent divestiture of the PICC and Midline businesses and the discontinuance of the RadioFrequency ablation and Syntrax businesses.
AngioDynamics reiterated its Med Tech revenue growth in the range of 10-15%. However, Med Device revenue growth is now projected at 2-4% compared with the previous guidance of 1-3%.
The adjusted loss per share is now projected to be between 54 cents and 58 cents, wider than the earlier guidance of adjusted loss per share of 35 cents and 42 cents. The Zacks Consensus Estimate currently stands at a loss of 44 cents.
Our Take
AngioDynamics exited the third quarter of fiscal 2024 with wider-than-expected adjusted loss per share and lower-than-expected revenues. Dismal top-line and bottom-line performances on a reported basis and lower revenues from AlphaVac sales in the fiscal third quarter were disappointing. Lower geographical revenues and the Med Device segment’s revenues on a reported basis were also worrying. The gross margin contraction does not bode well.
However, AngioDynamics’ solid uptick in revenues on a pro forma basis was impressive. Robust geographical revenues and Med Device revenues (both on a pro forma basis) and Med Tech revenues (both reported and on a pro forma basis) were also encouraging. Robust sales of Auryon and NanoKnife were also recorded.
This month, AngioDynamics received the FDA’s 510(k) clearance for the AlphaVac F18 System in the treatment of pulmonary embolism. During the quarter, the company submitted compelling data generated by its APEX trial. These also raised our optimism about the stock.
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 DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
The Zacks Consensus Estimate for DaVita’s first-quarter 2024 adjusted earnings per share (EPS) is currently pegged at $1.96. The consensus estimate for revenues is pegged at $3.01 billion. DVA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita has an estimated long-term growth rate of 12.1%. DVA’s earnings yield of 6.9% compares favorably with the industry’s 3.8%.
Cardinal Health currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its third-quarter fiscal 2024 adjusted EPS is currently pegged at $1.96. The same for revenues is pegged at $55.82 billion.
Cardinal Health has an estimated long-term growth rate of 14.2%. CAH’s earnings yield of 6.6% compares favorably with the industry’s 5.5%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2024 adjusted EPS is currently pegged at $3.65. The same for its revenues stands at $70.35 billion.
Cencora has an estimated long-term growth rate of 9.8%. COR’s earnings yield of 5.6% compares favorably with the industry’s 2.2%.
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AngioDynamics (ANGO) Q3 Earnings and Revenues Miss Estimates
AngioDynamics, Inc. (ANGO - Free Report) reported an adjusted loss per share of 16 cents for third-quarter fiscal 2024, wider than the year-ago loss of 3 cents per share and the Zacks Consensus Estimate of a loss of 14 cents per share.
On a pro-forma basis (excluding Dialysis and BioSentry businesses, the divested PICC and Midline product portfolios and the discontinued Uniblate, Starburst and Syntrax products), adjusted loss per share in third-quarter fiscal 2024 was also 16 cents, wider than the adjusted loss per share of 14 cents in the year-ago period.
GAAP loss per share was $4.73, wider than the year-ago period’s loss per share of 24 cents.
On a pro-forma basis, the GAAP loss per share in third-quarter fiscal 2024 was also $4.73, wider than the GAAP loss per share of 35 cents in the prior-year period.
Revenue Details
Revenues in the fiscal third quarter totaled $75.2 million, down 6.9% year over year both on a reported basis and at constant exchange rate (CER). The top line missed the Zacks Consensus Estimate by 1.9%.
On a pro forma basis, net sales were $65.9 million, up 7.9% 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.
Geographical Analysis
In the quarter under review, U.S. net revenues totaled $62.3 million, down 7.8% year over year. This figure compares to our U.S. net revenues’ fiscal third-quarter projection of $64 million.
On a pro forma basis, U.S. net revenues totaled $55.8 million, up 5.9%.
International revenues came in at $12.8 million, down 1.9% from the year-ago quarter, both on a reported basis and at CER. This figure compares to our fiscal third-quarter International revenues’ projection of $14 million.
On a pro forma basis, International revenues totaled $10.2 million, up 20.8%.
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 $25.8 million, reflecting an uptick of 12.9% year over year. This figure compares to our fiscal third quarter’s Med Tech business’ net sales projection of $19.9 million.
On a pro forma basis, Med Tech revenues totaled $25.7 million, up 12.6%. This was primarily on the back of increased net sales of Auryon amounting to $11.8 million (up 14.7%) and NanoKnife sales of $6 million (up 46.7%) compared with the prior-year quarter. NanoKnife disposable sales were $4.2 million (up 19.8% year over year), while AngioVac sales were $5.5 million. However, the improvement in the Med Tech segment was partially offset by a year-over-year decline of 45% in AlphaVac sales (which amounted to $1.1 million in the quarter).
Med Device revenues in the fiscal third quarter grossed $49.3 million, down 14.7% from the year-ago period. This figure compares to our fiscal third quarter’s Med Device business’ net sales projection of $58.1 million.
On a pro forma basis, Med Device revenues totaled $40.3 million, up 5.2%. This was driven by AngioDynamics’ EVLT and angiographic catheter products.
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 2.2% to $33.7 million. However, the pro forma gross margin contracted 292 basis points to 51.1%.
Sales and marketing expenses on a pro forma basis decreased 1.5% to $23.6 million year over year. Research and development expenses on a pro forma basis increased 20.2% year over year to $8.1 million, whereas general and administrative expenses on a pro forma basis increased 24.2% year over year to $10.6 million. On a pro forma basis, adjusted operating expenses of $42.3 million increased 7.8% year over year.
The adjusted operating loss on a pro forma basis totaled $8.6 million compared with the prior-year quarter’s adjusted operating loss of $6.3 million.
Cash Position
AngioDynamics exited third-quarter fiscal 2024 with cash and cash equivalents of $78.5 million compared with $60.9 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 $33.2 million compared with $15.9 million a year ago.
FY24 Guidance
AngioDynamics has revised its guidance for fiscal 2024.
The company now expects its net sales in the range of $270 million-$275 million, lower than the earlier outlook of $320 million-$325 million. The Zacks Consensus Estimate is currently pegged at $320.7 million.
The lowered guidance reflects the recent divestiture of the PICC and Midline businesses and the discontinuance of the RadioFrequency ablation and Syntrax businesses.
AngioDynamics reiterated its Med Tech revenue growth in the range of 10-15%. However, Med Device revenue growth is now projected at 2-4% compared with the previous guidance of 1-3%.
The adjusted loss per share is now projected to be between 54 cents and 58 cents, wider than the earlier guidance of adjusted loss per share of 35 cents and 42 cents. The Zacks Consensus Estimate currently stands at a loss of 44 cents.
Our Take
AngioDynamics exited the third quarter of fiscal 2024 with wider-than-expected adjusted loss per share and lower-than-expected revenues. Dismal top-line and bottom-line performances on a reported basis and lower revenues from AlphaVac sales in the fiscal third quarter were disappointing. Lower geographical revenues and the Med Device segment’s revenues on a reported basis were also worrying. The gross margin contraction does not bode well.
However, AngioDynamics’ solid uptick in revenues on a pro forma basis was impressive. Robust geographical revenues and Med Device revenues (both on a pro forma basis) and Med Tech revenues (both reported and on a pro forma basis) were also encouraging. Robust sales of Auryon and NanoKnife were also recorded.
This month, AngioDynamics received the FDA’s 510(k) clearance for the AlphaVac F18 System in the treatment of pulmonary embolism. During the quarter, the company submitted compelling data generated by its APEX trial. These also raised our optimism about the stock.
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 DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
The Zacks Consensus Estimate for DaVita’s first-quarter 2024 adjusted earnings per share (EPS) is currently pegged at $1.96. The consensus estimate for revenues is pegged at $3.01 billion. DVA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita has an estimated long-term growth rate of 12.1%. DVA’s earnings yield of 6.9% compares favorably with the industry’s 3.8%.
Cardinal Health currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its third-quarter fiscal 2024 adjusted EPS is currently pegged at $1.96. The same for revenues is pegged at $55.82 billion.
Cardinal Health has an estimated long-term growth rate of 14.2%. CAH’s earnings yield of 6.6% compares favorably with the industry’s 5.5%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2024 adjusted EPS is currently pegged at $3.65. The same for its revenues stands at $70.35 billion.
Cencora has an estimated long-term growth rate of 9.8%. COR’s earnings yield of 5.6% compares favorably with the industry’s 2.2%.