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AngioDynamics (ANGO) Q3 Earnings Top Estimates, Revenues Lag
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AngioDynamics, Inc. (ANGO - Free Report) reported adjusted earnings per share (EPS) of 3 cents for third-quarter fiscal 2022 compared with the year-ago EPS of 2 cents. The Zacks Consensus Estimate for the same was pegged at a loss of a penny per share.
GAAP loss per share came in at 13 cents, wider than the year-ago loss of 9 cents.
Revenue Details
Revenues in the fiscal third quarter totaled $73.9 million, up 3.9% year over year on a reported basis (up 3.8% at constant exchange rate or CER). However, the top line lagged the Zacks Consensus Estimate by 3.1%.
The company continued to see strong contributions 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 $62.4 million, up 6.5% year over year.
International revenues came in at $11.5 million, down 8% from the year-ago quarter on a reported basis and down 9% 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 third quarter were $12.5 million, reflecting a decline of 5% year over year, primarily as oncology-related procedures were severely impacted by the pandemic, hospital staffing disruptions and lower NanoKnife capital sales. This was partially offset by an 11% increase in NanoKnife disposable revenues in the United States.
Endovascular Therapies’ revenues in the fiscal third quarter grossed $38.1 million, up 14.5% from the year-ago period. This was driven by the continued adoption of Auryon and the thrombectomy portfolio. Auryon sales during the quarter were $7.3 million.
Revenues at the Vascular Access segment amounted to $23.4 million, down 5.6% on a year-over-year basis. The segment was impacted by supply-chain headwinds and a tight labor market that resulted in AngioDynamics’ backlog.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
In the quarter under review, AngioDynamics’ gross profit rose 0.1% to $38.6 million. Gross margin contracted 197 basis points (bps) to 52.2%.
Sales and marketing expenses rose 4.1% to $20.4 million year over year. Research and development expenses contracted 15% year over year to $7.3 million, whereas general and administrative expenses fell 3.2% year over year to $8.7 million. Adjusted operating expenses of $36.4 million decreased 2% year over year.
Adjusted operating profit totaled $2.2 million, reflecting a 60.4% uptick from the prior-year quarter’s level. Adjusted operating margin in the fiscal third quarter expanded 103 bps to 2.9%.
Cash Position
The company exited the third quarter of fiscal 2022 with cash and cash equivalents of $23.9 million compared with $34.3 million at the end of the fiscal second quarter. Long-term debt at the end of the third quarter of fiscal 2022 was $25 million, flat compared with that at the end of the fiscal second quarter.
Cumulative net cash used in operating activities came in at $15.8 million against net cash provided by operating activities of $11.9 million a year ago.
FY22 Guidance
The company has reiterated its revenue guidance for fiscal 2022 at the range of $310-$315 million. The Zacks Consensus Estimate for the same currently stands at $313.4 million.
The adjusted EPS range has been reiterated between a loss of 2 cents per share to a gain of 2 cents. The Zacks Consensus Estimate for the metric is currently pegged at a loss of a penny per share.
Our Take
AngioDynamics exited the third quarter of fiscal 2022 with better-than-expected earnings. The company continued gaining from its Med Tech business. Its year-over-year uptick in revenues along with solid performance by the Endovascular Therapies segment is impressive. Solid domestic revenues are also encouraging. Subsequent to the quarter-end, the company received FDA approval for its AlphaVac F18 thrombectomy system as well as for its Investigational Device Exemption study for the use of AlphaVac F18 to treat pulmonary embolism, raising optimism. Adjusted operating margin expansion in the fiscal third quarter bodes well for the company.
Lower-than-expected revenues in the reported quarter are worrying. Continued pandemic-led disruptions (which resulted in supply-chain headwinds) led to the backlog in the Vascular Access segment, raising our apprehension. A fall in two of the GBU revenues as well as lower international revenues during the quarter is concerning. The 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. , Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, and AMN Healthcare Services, Inc. (AMN - Free Report) .
The Zacks Consensus Estimate for Abiomed’s fourth-quarter fiscal 2022 adjusted EPS is currently pegged at $1.09. The consensus estimate for revenues is pinned at $266.3 million. Abiomed 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 1.5% compares favorably with the industry’s negative yield.
BD currently has a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2022 adjusted EPS is currently pegged at $3.00. The same for revenues is pinned at $4.86 billion.
BD has an estimated long-term growth rate of 6.3%. BDX’s earnings yield of 4.7% compares favorably with the industry’s 3.6%.
AMN Healthcare currently flaunts a Zacks Rank #1. The Zacks Consensus Estimate for its first-quarter 2022 adjusted EPS is currently pegged at $3.25. The same for its revenues stands at $1.50 billion.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings yield of 8.9% compares favorably with the industry’s negative yield.
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AngioDynamics (ANGO) Q3 Earnings Top Estimates, Revenues Lag
AngioDynamics, Inc. (ANGO - Free Report) reported adjusted earnings per share (EPS) of 3 cents for third-quarter fiscal 2022 compared with the year-ago EPS of 2 cents. The Zacks Consensus Estimate for the same was pegged at a loss of a penny per share.
GAAP loss per share came in at 13 cents, wider than the year-ago loss of 9 cents.
Revenue Details
Revenues in the fiscal third quarter totaled $73.9 million, up 3.9% year over year on a reported basis (up 3.8% at constant exchange rate or CER). However, the top line lagged the Zacks Consensus Estimate by 3.1%.
The company continued to see strong contributions 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 $62.4 million, up 6.5% year over year.
International revenues came in at $11.5 million, down 8% from the year-ago quarter on a reported basis and down 9% 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 third quarter were $12.5 million, reflecting a decline of 5% year over year, primarily as oncology-related procedures were severely impacted by the pandemic, hospital staffing disruptions and lower NanoKnife capital sales. This was partially offset by an 11% increase in NanoKnife disposable revenues in the United States.
Endovascular Therapies’ revenues in the fiscal third quarter grossed $38.1 million, up 14.5% from the year-ago period. This was driven by the continued adoption of Auryon and the thrombectomy portfolio. Auryon sales during the quarter were $7.3 million.
Revenues at the Vascular Access segment amounted to $23.4 million, down 5.6% on a year-over-year basis. The segment was impacted by supply-chain headwinds and a tight labor market that resulted in AngioDynamics’ backlog.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
AngioDynamics, Inc. price-consensus-eps-surprise-chart | AngioDynamics, Inc. Quote
Margin Analysis
In the quarter under review, AngioDynamics’ gross profit rose 0.1% to $38.6 million. Gross margin contracted 197 basis points (bps) to 52.2%.
Sales and marketing expenses rose 4.1% to $20.4 million year over year. Research and development expenses contracted 15% year over year to $7.3 million, whereas general and administrative expenses fell 3.2% year over year to $8.7 million. Adjusted operating expenses of $36.4 million decreased 2% year over year.
Adjusted operating profit totaled $2.2 million, reflecting a 60.4% uptick from the prior-year quarter’s level. Adjusted operating margin in the fiscal third quarter expanded 103 bps to 2.9%.
Cash Position
The company exited the third quarter of fiscal 2022 with cash and cash equivalents of $23.9 million compared with $34.3 million at the end of the fiscal second quarter. Long-term debt at the end of the third quarter of fiscal 2022 was $25 million, flat compared with that at the end of the fiscal second quarter.
Cumulative net cash used in operating activities came in at $15.8 million against net cash provided by operating activities of $11.9 million a year ago.
FY22 Guidance
The company has reiterated its revenue guidance for fiscal 2022 at the range of $310-$315 million. The Zacks Consensus Estimate for the same currently stands at $313.4 million.
The adjusted EPS range has been reiterated between a loss of 2 cents per share to a gain of 2 cents. The Zacks Consensus Estimate for the metric is currently pegged at a loss of a penny per share.
Our Take
AngioDynamics exited the third quarter of fiscal 2022 with better-than-expected earnings. The company continued gaining from its Med Tech business. Its year-over-year uptick in revenues along with solid performance by the Endovascular Therapies segment is impressive. Solid domestic revenues are also encouraging. Subsequent to the quarter-end, the company received FDA approval for its AlphaVac F18 thrombectomy system as well as for its Investigational Device Exemption study for the use of AlphaVac F18 to treat pulmonary embolism, raising optimism. Adjusted operating margin expansion in the fiscal third quarter bodes well for the company.
Lower-than-expected revenues in the reported quarter are worrying. Continued pandemic-led disruptions (which resulted in supply-chain headwinds) led to the backlog in the Vascular Access segment, raising our apprehension. A fall in two of the GBU revenues as well as lower international revenues during the quarter is concerning. The 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. , Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, and AMN Healthcare Services, Inc. (AMN - Free Report) .
The Zacks Consensus Estimate for Abiomed’s fourth-quarter fiscal 2022 adjusted EPS is currently pegged at $1.09. The consensus estimate for revenues is pinned at $266.3 million. Abiomed 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 1.5% compares favorably with the industry’s negative yield.
BD currently has a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2022 adjusted EPS is currently pegged at $3.00. The same for revenues is pinned at $4.86 billion.
BD has an estimated long-term growth rate of 6.3%. BDX’s earnings yield of 4.7% compares favorably with the industry’s 3.6%.
AMN Healthcare currently flaunts a Zacks Rank #1. The Zacks Consensus Estimate for its first-quarter 2022 adjusted EPS is currently pegged at $3.25. The same for its revenues stands at $1.50 billion.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings yield of 8.9% compares favorably with the industry’s negative yield.