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AngioDynamics (ANGO) Q2 Earnings Lag Estimates, Revenues Top

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

GAAP loss per share came in at 21 cents, wider than the year-ago loss of 11 cents per share.

Revenue Details

Revenues in the fiscal second quarter totaled $78.3 million, up 7.6% year over year on a reported basis (up 7.7% at constant exchange rate or CER). The top line surpassed the Zacks Consensus Estimate by 0.4%.

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

Geographical Analysis

In the quarter under review, U.S. net revenues totaled $65.4 million, up 7.7% year over year.

International revenues came in at $12.9 million, up 7% from the year-ago quarter on a reported basis and up 7.8% at CER.

Segmental Analysis

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

The Oncology arm’s net sales in the fiscal second quarter were $13.6 million, reflecting a decline of 9.3% year over year, primarily due to lower capital sales. This was partially offset by increased sales of disposables.

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 second quarter grossed $39.7 million, up 17% from the year-ago period. This was driven by strength in the company’s atherectomy and thrombectomy portfolios. Auryon sales during the quarter were $6.3 million.

Revenues at the Vascular Access segment amounted to $25.1 million, up 4.8% on a year-over-year basis.

Margin Analysis

In the quarter under review, AngioDynamics’ gross profit rose 0.9% to $40.6 million. Gross margin contracted 340 basis points to 51.8%.

Sales and marketing expenses rose 17% to $23.6 million year over year. Research and development expenses fell 15.6% year over year to $8.2 million, whereas general and administrative expenses grew 4.9% year over year to $9.7 million. Adjusted operating expenses of $41.5 million increased 6.1% year over year.

Adjusted operating loss totaled $0.9 million against the prior-year quarter’s adjusted operating profit of $1.1 million.

Cash Position

The company exited the second quarter of fiscal 2022 with cash and cash equivalents of $34.3 million compared with $35.5 million at the end of the fiscal first quarter. Long-term debt (net of current portion) at the end of the second quarter of fiscal 2022 was $25 million, flat compared with that at the end of fiscal first quarter.

Net cash used in operating activities came in at $6.9 million against net cash provided by operating activities of $6 million a year ago.

FY22 Guidance

The company has reiterated its revenue guidance for fiscal 2022, which is expected in the range of $310-$315 million.

Adjusted EPS is now expected to be between a loss of 2 cents per share to a gain of 2 cents, compared with the earlier projection of an EPS of break-even level to 5 cents. The Zacks Consensus Estimate for the metric is pegged at an EPS 2 cents, which matches the upper end of the company-provided outlook.

Our Take

AngioDynamics exited the second quarter of fiscal 2022 with better-than-expected revenues. 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 and international revenues are also encouraging. The company commenced a full-market release of its AlphaVac Mechanical Thrombectomy device at the end of the second quarter, raising our optimism.

Lower-than-expected earnings in the reported quarter are worrying. Continued pandemic-led disruptions (which resulted in supply chain headwinds) lead to the backlog in the Med Device business, raising our apprehension. Fall in the Oncology segment’s revenues during the quarter under review is concerning as well. Gross margin contraction also does not bode well.

Zacks Rank & Key Picks

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

Some better-ranked stocks which are supposed to report earnings soon are Abiomed, Inc. , Abbott Laboratories (ABT - Free Report) and AMN Healthcare Services (AMN - Free Report) .

The Zacks Consensus Estimate for Abiomed’s third-quarter fiscal 2022 adjusted EPS is currently pegged at 98 cents. The consensus estimate for third-quarter fiscal 2022 revenues is pegged at $254.5 million. 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.

Abiomed has an estimated long-term growth rate of 20%. ABMD’s earnings yield of 1.3% compares favorably with the industry’s negative yield.

Abbott currently has a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter 2021 adjusted EPS is currently pegged at $1.16. The consensus estimate for fourth-quarter revenues is pinned at $10.42 billion.

Abbott has an estimated long-term growth rate of 12%. ABT’s earnings yield of 3.5% compares favorably with the industry’s negative yield.

AMN Healthcare currently flaunts a Zacks Rank #1. The Zacks Consensus Estimate for its fourth-quarter 2021 adjusted EPS is currently pegged at $2.25. The consensus estimate for its revenues stands at $1.14 billion.

AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings yield of 5.4% compares favorably with the industry’s 1%.


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