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AngioDynamics (ANGO) Up 8.7% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for AngioDynamics (ANGO - Free Report) . Shares have added about 8.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is AngioDynamics 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.
AngioDynamics Q2 Earnings Beat, Gains From NanoKnife
AngioDynamics reported second-quarter fiscal 2019 adjusted earnings of 22 cents per share, which edged past the Zacks Consensus Estimate by a penny. The bottom line rose 29.4% on a year-over-year basis.
Revenues totaled $91.5 million, surpassing the Zacks Consensus Estimate by 2.9%. On a year-over-year basis, the metric increased 5.5%.
Geographical Analysis
In the quarter under review, U.S. net revenues totaled $71.9 million, up 5.2% year over year and at constant currency (cc).
International revenues summed $19.6 million, up 6.6% year over year and 7.8% at cc.
Segmental Analysis
Vascular Interventions and Therapies (VIT) Business
VIT revenues in the quarter grossed $52.4 million, up 2.2% from the year-ago quarter. Per management, Fluid Management and AngioVac saw strong growth but were partially offset by a decelerating decline in the Venous Insufficiency business.
Vascular Access (VA) Business
Revenues at this segment amounted to $23.7 million, up 5.1% on a year-over-year basis. Per management, strong revenues of Ports and Dialysis products were slightly offset by a decline in PICC revenues.
Oncology/Surgery Business
Revenues at the Oncology segment improved 19.8% year over year to $15.3 million backed by strong NanoKnife revenues in both capital and disposables. The segment also saw positive contributions from the two recent acquisitions of BioSentry and RadiaDyne, which was somewhat offset by a drop in the company’s Thermal Ablation product revenues.
Excluding the impact of transition from the company’s Acculis Microwave product to Solero Microwave, its Oncology business grew 28.7% year over year.
Margin Analysis
In the quarter under review, gross profit totaled $49.1 million, up 14.9% from the year-ago quarter number. Gross margin was 53.7%, up 440 basis points (bps).
Adjusted operating income totaled $12.1 million, up 20% year over year. Adjusted operating margin was 13.2%, up 150 bps year over year.
Guidance
For fiscal 2019, AngioDynamics continues to expect revenues in the range of $354-$359 million.
Adjusted earnings per share are expected between 82 cents and 86 cents. Free cash flow is projected within $26-$31 million for fiscal 2019.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months.
VGM Scores
Currently, AngioDynamics has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
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) Up 8.7% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for AngioDynamics (ANGO - Free Report) . Shares have added about 8.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is AngioDynamics 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.
AngioDynamics Q2 Earnings Beat, Gains From NanoKnife
AngioDynamics reported second-quarter fiscal 2019 adjusted earnings of 22 cents per share, which edged past the Zacks Consensus Estimate by a penny. The bottom line rose 29.4% on a year-over-year basis.
Revenues totaled $91.5 million, surpassing the Zacks Consensus Estimate by 2.9%. On a year-over-year basis, the metric increased 5.5%.
Geographical Analysis
In the quarter under review, U.S. net revenues totaled $71.9 million, up 5.2% year over year and at constant currency (cc).
International revenues summed $19.6 million, up 6.6% year over year and 7.8% at cc.
Segmental Analysis
Vascular Interventions and Therapies (VIT) Business
VIT revenues in the quarter grossed $52.4 million, up 2.2% from the year-ago quarter. Per management, Fluid Management and AngioVac saw strong growth but were partially offset by a decelerating decline in the Venous Insufficiency business.
Vascular Access (VA) Business
Revenues at this segment amounted to $23.7 million, up 5.1% on a year-over-year basis. Per management, strong revenues of Ports and Dialysis products were slightly offset by a decline in PICC revenues.
Oncology/Surgery Business
Revenues at the Oncology segment improved 19.8% year over year to $15.3 million backed by strong NanoKnife revenues in both capital and disposables. The segment also saw positive contributions from the two recent acquisitions of BioSentry and RadiaDyne, which was somewhat offset by a drop in the company’s Thermal Ablation product revenues.
Excluding the impact of transition from the company’s Acculis Microwave product to Solero Microwave, its Oncology business grew 28.7% year over year.
Margin Analysis
In the quarter under review, gross profit totaled $49.1 million, up 14.9% from the year-ago quarter number. Gross margin was 53.7%, up 440 basis points (bps).
Adjusted operating income totaled $12.1 million, up 20% year over year. Adjusted operating margin was 13.2%, up 150 bps year over year.
Guidance
For fiscal 2019, AngioDynamics continues to expect revenues in the range of $354-$359 million.
Adjusted earnings per share are expected between 82 cents and 86 cents.
Free cash flow is projected within $26-$31 million for fiscal 2019.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months.
VGM Scores
Currently, AngioDynamics has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
AngioDynamics has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.