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AngioDynamics (ANGO) Q1 Earnings and Revenues Top Estimates

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AngioDynamics, Inc. (ANGO - Free Report) reported adjusted loss per share of 2 cents for first-quarter fiscal 2022 against the year-ago earnings per share (“EPS”) of 2 cents. The figure was narrower than the Zacks Consensus Estimate of a loss of 5 cents.

GAAP loss per share came in at 18 cents, wider than the year-ago loss of 11 cents per share.

Revenue Details

Revenues in the fiscal first quarter totaled $76.9 million, up 9.6% year over year on a reported basis (up 9.4% at constant exchange rate or CER). The top line surpassed the Zacks Consensus Estimate by 8.4%.

The company registered strong contribution from its Med Tech business (which includes the thrombus management platform, Auryon and NanoKnife) during the quarter.

Geographical Analysis

In the quarter under review, U.S. net revenues totaled $64.5 million, up 19.1% year over year.

International revenues came in at $12.5 million, down 22.4% from the year-ago quarter.

Segmental Analysis

AngioDynamics’ product offerings fall within three Global Business Units (GBUs) — Oncology/Surgery (“OS”), Endovascular Therapies and Vascular Access (“VA”).

The OS arm’s net sales in the fiscal first quarter were $14 million, reflecting an improvement of 13.9% year over year, driven by increased sales of NanoKnife capital and disposables, and sales of the BioSentry Tract Sealant System. This was partially offset by lower sales of the company’s Microwave product and continued softness in international markets.

AngioDynamics, Inc. Price, Consensus and EPS Surprise

AngioDynamics, Inc. Price, Consensus and EPS Surprise

AngioDynamics, Inc. price-consensus-eps-surprise-chart | AngioDynamics, Inc. Quote

Endovascular Therapies revenues in the fiscal first quarter grossed $38.1 million, up 27.5% from the year-ago period. This was driven by broad strength across its business, led by sales of the Auryon platform. Auryon sales during the quarter were $5.9 million.

Revenues at the VA segment amounted to $25 million, down 11.2% on a year-over-year basis. Excluding the non-recurring revenues of $5.2 million derived from the National Health Service’s sale in the year-ago period, the segment witnessed a revenue uptick of 9%. The growth was driven by growth in peripherally inserted central catheters or PICCs, Midlines and particularly Ports, during the quarter.

Margin Analysis

In the quarter under review, AngioDynamics’ gross profit rose 12.2% to $40.1 million. Gross margin expanded 121 basis points to 52.1%.

Sales and marketing expenses rose 38.1% to $24.4 million year over year. Research and development expenses fell 17.9% year over year to $7.4 million whereas general and administrative expenses grew 4.5% year over year to $8.9 million. Adjusted operating expenses of $40.8 million increased 15.6% year over year.

Adjusted operating loss totaled $0.6 million against the prior-year quarter’s adjusted operating profit of $0.5 million.

Cash Position

The company exited the first quarter of fiscal 2022 with cash and cash equivalents of $35.5 million compared with $48.2 million at the end of fiscal 2021. Long-term debt (net of current portion) at the end of the first quarter of fiscal 2022 was $25 million compared with $20 million at the end of fiscal 2021.

Net cash used in operating activities came in at $8.9 million compared with net cash used in operating activities of $5.4 million a year ago.

FY22 Guidance

The company has raised its revenue projections for fiscal 2022.

Revenues are now projected in the range of $310-$315 million, up from the earlier provided range of $305-$310 million.

Adjusted EPS is continued to be expected between a break-even level and 5 cents. The Zacks Consensus Estimate for the metric is pegged at a penny.

Our Take

AngioDynamics exited the first quarter of fiscal 2022 with better-than-expected results. The company continued gaining from its Med Tech business. Its year-over-year uptick in revenues, along with solid performances across two of its GBUs, is impressive. Solid domestic revenues are also encouraging. The company commenced a limited market release of its AlphaVac mechanical thrombectomy device in September, while continuing to gain clinician support, raising our optimism. Gross margin expansion also bodes well. A raised revenue projection for fiscal 2022 is another plus.

Continued softness in international markets and fall in the VA segment’s revenues during the quarter under review are concerning.

Zacks Rank & Key Picks

AngioDynamics currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks which are supposed to report earnings soon are Edwards Lifesciences Corporation (EW - Free Report) , Omnicell, Inc. (OMCL - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) .

The Zacks Consensus Estimate for Edwards Lifesciences’ third-quarter 2021 adjusted EPS is currently pegged at 55 cents. The consensus estimate for third-quarter revenues is pegged at $1.33 billion. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Omnicell currently has a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter 2021 adjusted EPS is currently pegged at 80 cents. The consensus estimate for third-quarter revenues is pinned at $283.8 million.

IDEXX currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter 2021 adjusted EPS is currently pegged at $2.07. The consensus estimate for its revenues stands at $793.3 million.