AngioDynamics Inc. (ANGO - Free Report) reported impressive first-quarter fiscal 2017 results. Adjusted earnings of 17 cents per share beat the Zacks Consensus Estimate by 4 cents and surged 54.5% from the year-ago quarter. Earnings were primarily driven by growth in the Peripheral Vascular franchise as a result of opportunities created by the Cook Medical recall.
AngioDynamics reported sales of $88.1 million, which beat the Zacks Consensus Estimate of $86 million and increased 5.2% on a year-over-year basis.
On a constant currency (cc) basis, U.S. sales increased 5% to almost $71.8 million. International sales totaled $15.7 million, up 7% year over year at cc.
Segment Details
Peripheral Vascular (PV) business sales recorded an increase of 9% year over year to $51.4 million.
The Vascular Access business unit reported sales of $25.0 million, almost flat with growth of only 1% from the year-ago quarter.
Sales at the Oncology/Surgery business fell 2% year over year to $11.1 million.
Financials
At the end of the quarter under review, AngioDynamics had cash and cash equivalents of $37.4 million versus $32.2 million at the end of the year-ago period. Long-term debt was $100.7 million as of Aug 31, 2016, compared with $104.3 million as of May 31, 2016. Cash flow from operations was $7.4 million in the reported quarter versus $4.7 million a year ago.
Guidance
For fiscal 2017, AngioDynamics expects adjusted earnings in the range 62 cents to 65 cents per share, which reflects almost 9.5% growth from fiscal 2016.
For the same period, sales are expected in the range of $355 million to $360 million. At mid-point, this range reflects year-over-year growth of 1%.
AngioDynamics anticipates an excess of $30 million in free cash flow for fiscal 2017.
Our Take
AngioDynamics is a leading provider of minimally invasive medical devices used for vascular access, surgery, peripheral vascular disease and oncology. The company’s product lines include ablation systems, fluid management systems, vascular access products, angiographic products and accessories, angioplasty products, drainage products, thrombolytic products and venous products.
We believe that an expanding portfolio, including 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 should also 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 #2 (Buy). Other favorably ranked stocks in the broader medical sector are GW Pharmaceuticals Plc. , ABIOMED and Quidel Corp. (QDEL - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GW Pharmaceuticals has a solid year-to-date return of 92.2%, way better than the S&P 500’s 9.0% over the same time frame. Notably, the company posted a positive earnings surprise in the last four quarters, the average being 41.6%.
ABIOMED posted an impressive one-year return of 41.1%. The company recorded a positive earnings surprise in the last four quarters, the average being 34.9%
Quidel Corp. has a positive year-to-date return of 2.8%. The stock has a healthy expected earnings growth rate of 20%.
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AngioDynamics Inc. (ANGO - Free Report) reported impressive first-quarter fiscal 2017 results. Adjusted earnings of 17 cents per share beat the Zacks Consensus Estimate by 4 cents and surged 54.5% from the year-ago quarter. Earnings were primarily driven by growth in the Peripheral Vascular franchise as a result of opportunities created by the Cook Medical recall.
AngioDynamics reported sales of $88.1 million, which beat the Zacks Consensus Estimate of $86 million and increased 5.2% on a year-over-year basis.
On a constant currency (cc) basis, U.S. sales increased 5% to almost $71.8 million. International sales totaled $15.7 million, up 7% year over year at cc.
Segment Details
Peripheral Vascular (PV) business sales recorded an increase of 9% year over year to $51.4 million.
The Vascular Access business unit reported sales of $25.0 million, almost flat with growth of only 1% from the year-ago quarter.
Sales at the Oncology/Surgery business fell 2% year over year to $11.1 million.
Financials
At the end of the quarter under review, AngioDynamics had cash and cash equivalents of $37.4 million versus $32.2 million at the end of the year-ago period. Long-term debt was $100.7 million as of Aug 31, 2016, compared with $104.3 million as of May 31, 2016. Cash flow from operations was $7.4 million in the reported quarter versus $4.7 million a year ago.
Guidance
For fiscal 2017, AngioDynamics expects adjusted earnings in the range 62 cents to 65 cents per share, which reflects almost 9.5% growth from fiscal 2016.
For the same period, sales are expected in the range of $355 million to $360 million. At mid-point, this range reflects year-over-year growth of 1%.
AngioDynamics anticipates an excess of $30 million in free cash flow for fiscal 2017.
Our Take
AngioDynamics is a leading provider of minimally invasive medical devices used for vascular access, surgery, peripheral vascular disease and oncology. The company’s product lines include ablation systems, fluid management systems, vascular access products, angiographic products and accessories, angioplasty products, drainage products, thrombolytic products and venous products.
We believe that an expanding portfolio, including 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 should also 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 #2 (Buy). Other favorably ranked stocks in the broader medical sector are GW Pharmaceuticals Plc. , ABIOMED and Quidel Corp. (QDEL - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GW Pharmaceuticals has a solid year-to-date return of 92.2%, way better than the S&P 500’s 9.0% over the same time frame. Notably, the company posted a positive earnings surprise in the last four quarters, the average being 41.6%.
ABIOMED posted an impressive one-year return of 41.1%. The company recorded a positive earnings surprise in the last four quarters, the average being 34.9%
Quidel Corp. has a positive year-to-date return of 2.8%. The stock has a healthy expected earnings growth rate of 20%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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