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AngioDynamics Hits New 52-Week High on Solid Q4 Results

AMPH ANGO EW USNA

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Share price of AngioDynamics (ANGO - Free Report) rallied to a new 52-week high of $17.42 on Sep 21, eventually closing a bit lower at $17.41. This represents an impressive one-year return of approximately 20.6%, better than the S&P 500’s 11.5% over the same period.

Currently, AngioDynamics holds a Zacks Rank #2 (Buy). Notably, the stock has a market cap of $621.5 million.

Catalysts

AngioDynamics reported an impressive fourth quarter of fiscal 2016, beating the Zacks Consensus Estimate on both the lines. Notably, the company posted adjusted earnings of 19 cents per share (up 35.7% from the year-ago quarter) and sales of $93.4 million (up 2.7%) in the quarter. Since then, share price rallied a massive 9.2% till yesterday’s close.

The expanding portfolio of AngioDynamics is a key positive in our view. Exclusive products like Asclera, AngioVac, BioFlo and NanoKnife have enhanced AngioDynamics’ market opportunities in the recent times. Notably, the approval of NanoKnife systems in China expanded the company’s market reach. Japan also promises to be a great prospect for the product over the long haul.

ANGIODYNAMICS Price and Consensus

 

ANGIODYNAMICS Price and Consensus | ANGIODYNAMICS Quote

The company’s growth in the venous business line is another significant positive, courtesy of high Asclera revenues that witnessed a 6% year-over-year surge in laser-procedure kit sales during the fourth quarter.

Of the other notable developments, the successful launches of Asclera varicose and spider vein treatments are noteworthy, driving sales in the peripheral vascular (PV) business line. In fact the angiographic catheter product line within the PV business also played a vital role in fortifying the company’s market position.

Based on a robust performance, the company has provided a promising fiscal 2017 guidance boosting our confidence on the stock. AngioDynamics expects sales in the band of $355 million to $360 million. At the mid-point, this range reflects year-over-year growth of 1%. Adjusted earnings are forecasted in the range 62 cents to 65 cents per share, reflecting almost 9.5% growth from fiscal 2016. The company also anticipates an excess of $30 million in cash in the coming year.

Estimate Revisions

The Zacks Consensus Estimate for fiscal 2016 remained constant over the last 60 days at 63 cents. Similarly, for fiscal 2017, estimates were pegged at 74 cents over the same time frame.

Other Key Picks

Other favorably ranked stocks in the broader medical instrument sector include USANA Health Sciences Inc. (USNA - Free Report) , Edwards Lifesciences Corp (EW - Free Report) and Amphastar Pharmaceuticals Inc (AMPH - Free Report) . Notably 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.

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