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Why Is AngioDynamics (ANGO) Up 2.3% Since Last Earnings Report?

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A month has gone by since the last earnings report for AngioDynamics (ANGO - Free Report) . Shares have added about 2.3% in that time frame, outperforming 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 catalysts.

AngioDynamics Q4 Earnings Match Estimates, Revenues Top

AngioDynamics reported break-even adjusted earnings per share for fourth-quarter fiscal 2021 against the year-ago loss per share of 6 cents. The figure was in line with the Zacks Consensus Estimate.

GAAP loss per share came in at 51 cents, narrower than the year-ago loss of $4.13 per share.

Full-year adjusted earnings per share was 5 cents, reflecting a 44.4% decrease from the year-ago period. The metric was again in line with the Zacks Consensus Estimate.

Revenue Details

Revenues in the fiscal fourth quarter totaled $76.8 million, up 31.7% year over year on a reported basis (up 30.9% at constant exchange rate or CER). The top line surpassed the Zacks Consensus Estimate by 5.9%.

The company registered strong contribution from Auryon and continued strength in AngioVac during the quarter.

Full-year revenues were $291 million, reflecting a 10.2% uptick from the year-ago period (up 9.8% at CER). Again, the metric beat the Zacks Consensus Estimate by 1.5%.

Geographical Analysis

In the quarter under review, U.S. net revenues totaled $63.6 million, up 42.6% year over year.

International revenues came in at $13.2 million, down 3.6% from the year-ago quarter.

Segmental Analysis

AngioDynamics’ product offerings fall within three GBUs — Oncology/Surgery, Endovascular Therapies (formerly Vascular Interventions and Therapies) and Vascular Access.

Oncology/Surgery arm’s net sales in the fiscal fourth quarter were $14.3 million, reflecting an improvement of 14.2% year over year, driven by increased sales of NanoKnife and Microwave disposables, and sales of the BioSentry Tract Sealant System. This was partially offset by continued softness in capital spending and international markets.

Endovascular Therapies revenues in the fiscal fourth quarter grossed $38.1 million, up 72.3% from the year-ago period. This was driven by broad strength across the business, led by sales of the Auryon and AngioVac platforms. Auryon sales during the quarter were $4.6 million.

Revenues at the Vascular Access segment amounted to $24.5 million, up 3.2% on a year-over-year basis. The growth was driven by growth in Ports but offset by a fall in PICCs.

Margin Analysis

In the quarter under review, AngioDynamics’ gross profit rose 40.1% to $42.3 million. Gross margin expanded 328 bps to 55.1%.

Meanwhile, sales and marketing expenses rose 30.8% to $23.8 million year over year. Research and development expenses climbed 25.9% year over year to $9.1 million whereas general and administrative expenses grew 11.1% year over year to $9.1 million. Adjusted operating expenses of $42.1 million increased 24.9% year over year.

Adjusted operating profit totaled $0.3 million against the prior-year quarter’s adjusted operating loss of $3.4 million.

Cash Position

The company exited the fiscal 2021 with cash and cash equivalents of $48.2 million compared with $54.4 million at the end of fiscal 2020. Long-term debt (net of current portion) at the end of fiscal 2021 was $20 million compared with $40 million at the end of fiscal 2020.

Cumulative net cash provided by operating activities came in at $24.1 million compared with net cash used by operating activities of $14.6 million a year ago.

FY22 Guidance

The company initiated its fiscal 2022 outlook.

Revenues are projected in the range of $305-$310 million.

Adjusted earnings per share is now pegged between a break-even level and 5 cents. The Zacks Consensus Estimate for the metric is pegged at 12 cents.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.


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