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ANGO Stock Down Despite Q4 Earnings Beat, Gross Margin Declines
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Key Takeaways
ANGO posted Q4 FY25 revenues of $80.2 million, up 12.9% and ahead of the consensus mark by 7.5%.
Adjusted Q4 loss per share of 3 cents narrowed from 6 cents and beat the consensus mark of 13 cents.
Gross margin fell 161 bps to 52.7% despite 9.4% growth in pro forma gross profit.
AngioDynamics, Inc. (ANGO - Free Report) reported an adjusted loss per share of 3 cents for fourth-quarter fiscal 2025, narrower than the year-ago quarter’s adjusted loss per share of 6 cents and the Zacks Consensus Estimate of a loss of 13 cents.
On a pro-forma basis (excluding the divested Dialysis and BioSentry businesses, the divested PICC and Midline product portfolios and the discontinued Radiofrequency and Syntrax products), adjusted loss per share for fourth-quarter fiscal 2025 was also 3 cents, narrower than 5 cents reported in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
GAAP loss per share was 15 cents, narrower than the year-ago period’s 33 cents.
On a pro-forma basis, the fiscal fourth-quarter GAAP loss per share was also 15 cents, narrower than 33 cents a year ago.
Full-year fiscal 2025 adjusted loss per share was 15 cents, narrower than the 38 cents at the end of the comparable fiscal 2024 period and the Zacks Consensus Estimate of a loss of 29 cents per share.
On a pro-forma basis, the full-year fiscal 2025 adjusted loss per share was 25 cents, narrower than 45 cents at the end of the comparable fiscal 2024 period.
ANGO’s Revenue Details
Revenues in the fiscal fourth quarter totaled $80.2 million, up 12.9% year over year both on a reported basis and at a constant exchange rate (CER). The top line outpaced the Zacks Consensus Estimate by 7.5%.
On a pro forma basis, net sales were $80.2 million, up 12.7% both on a reported basis and at CER from the prior-year quarter.
The company continued to see strong contributions from its Med Tech (which includes the Auryon peripheral atherectomy platform, the thrombus management platform and the NanoKnife irreversible electroporation platform) and Med Device businesses during the quarter.
Full-year fiscal 2025 revenues were $292.5 million, reflecting a 3.8% decline both on a reported basis and at CER from the comparable fiscal 2024 period. The figure topped the Zacks Consensus Estimate by 1.9%.
On a pro forma basis, full-year fiscal 2025 revenues were $292.7 million, reflecting an 8.1% uptick on a reported basis and 8.2% at CER from the comparable fiscal 2024 period.
Shares of this company lost nearly 10.2% at the end of yesterday’s trading.
AngioDynamics’ Geographical Analysis
In the quarter under review, U.S. net revenues totaled $67.5 million, up 11.1% year over year. This figure compares to our U.S. net revenues’ fiscal fourth-quarter projection of $64.1 million.
On a pro forma basis, U.S. net revenues also totaled $67.5 million, up 11% year over year.
International revenues came in at $12.7 million, up 23.8% from the year-ago quarter, both on a reported basis and at CER. This figure compares to our fiscal fourth-quarter International revenues’ projection of $10.2 million.
On a pro forma basis, International revenues totaled $12.7 million, up 22.8% year over year.
ANGO’s Segmental Analysis
AngioDynamics derives revenues from two businesses — Med Tech and Med Device.
The Med Tech business’ net sales in the fiscal fourth quarter were $35.8 million, reflecting an uptick of 22% year over year. This figure compares to our fiscal fourth-quarter Med Tech business’ net sales projection of $30.3 million.
On a pro forma basis, Med Tech revenues also totaled $35.8 million, up 22% year over year. This figure compares to our fiscal fourth-quarter Med Tech business’ net sales projection of $30.3 million.
The rise was primarily on the back of increased net sales of Auryon amounting to $15.6 million (up 19.7% year over year), Mechanical Thrombectomy revenues (which includes AngioVac and AlphaVac) of $11.3 million (up 44.7% year over year) and NanoKnife disposable sales of $5.7 million (up 5.5% year over year). In the quarter, AngioVac revenues were $8.2 million (up 39.5% year over year) and AlphaVac revenues were $3.1 million (up 60.8% year over year). Total NanoKnife revenues were $7.2 million, down 2.5% year over year. NanoKnife prostate procedures in the quarter were 81% of all NanoKnife procedures.
Med Device revenues in the fiscal fourth quarter grossed $44.4 million, up 6.5% from the year-ago period. This figure compares to our fiscal fourth-quarter Med Device business’ net sales projection of $44.1 million.
On a pro forma basis, Med Device revenues totaled $44.4 million, up 6.2% from the year-ago period. This figure compares to our fiscal fourth-quarter Med Device business’ net sales projection of $44.1 million.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
In the quarter under review, AngioDynamics’ pro forma gross profit rose 9.4% to $42.2 million. However, the pro forma gross margin contracted 161 basis points to 52.7%. We had projected a pro forma gross margin of 52.3% for fourth-quarter fiscal 2025.
Sales and marketing expenses on a pro forma basis increased 7.6% to $26.4 million year over year. Research and development expenses on a pro forma basis decreased 1.9% year over year to $6.6 million, whereas general and administrative expenses on a pro forma basis decreased 1.9% to $10.2 million. On a pro forma basis, adjusted operating expenses of $43.3 million increased 3.7% year over year.
The adjusted operating loss on a pro forma basis totaled $1 million compared with the prior-year quarter’s loss of $3.1 million.
ANGO’s Cash Position
AngioDynamics exited fiscal 2025 with cash and cash equivalents of $55.9 million compared with $76.1 million at the fiscal 2024-end.
The company ended the quarter with no debt on its balance sheet.
Cumulative net cash used in operating activities was $10.1 million compared with $28.2 million a year ago.
AngioDynamics’ FY26 Guidance
AngioDynamics has initiated its guidance for fiscal 2026.
The company expects its net sales to be in the range of $305 million-$310 million, representing growth of 4-6% from the comparable fiscal 2025 period. The Zacks Consensus Estimate is currently pegged at $308.9 million.
AngioDynamics expects its Med Tech revenue growth to be in the range of 12-15%, while Med Device revenue growth is projected to be flat over the comparable fiscal 2025 period.
Management expects the tariffs to have a limited impact on its overall top line and segmental performance.
The adjusted loss per share is projected to be between 35 cents and 25 cents, including the tariff impacts. Excluding the impacts, the adjusted loss per share is projected to be between 30 cents and 25 cents. The Zacks Consensus Estimate is currently pegged at a loss of 24 cents per share.
Our Take on ANGO
AngioDynamics exited the fourth quarter of fiscal 2025 with dismal bottom-line results. It registered a loss per share both on a reported and pro-forma basis in the quarter, which is disappointing. The pro-forma gross margin contraction does not bode well.
However, AngioDynamics’ narrower-than-expected adjusted loss per share and better-than-expected revenues in the fiscal fourth quarter raise optimism. The company recorded a narrower adjusted loss per share both on a reported and pro-forma basis in the quarter, which is encouraging. The uptick in overall revenues and geographical revenues, both on a reported basis and at CER, looked promising. The robust performance of both segments was also impressive. Robust Auryon, AngioVac, AlphaVac and NanoKnife disposable sales were also recorded during the quarter.
During the quarter, AngioDynamics received a CPT Category I Code for Irreversible Electroporation (IRE) for the treatment of lesions in the pancreas, effective Jan. 1, 2027. This expands the reimbursement pathway for NanoKnife in additional disease states, following the previously disclosed CPT Category I Code for IRE for the treatment of prostate cancer. This raises optimism about the stock.
AngioDynamics’ Zacks Rank & Key Picks
ANGO currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space that are expected to report earnings soon are Boston Scientific Corporation (BSX - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
The Zacks Consensus Estimate for Boston Scientific’s second-quarter 2025 adjusted earnings per share (EPS) is currently pegged at 72 cents. The consensus estimate for revenues is pegged at $4.89 billion. BSX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has an estimated long-term growth rate of 13.2%. BSX’s earnings yield of 2.8% compares favorably with the industry’s 1.1%.
Cardinal Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter fiscal 2025 adjusted EPS is currently pegged at $2.03. The same for revenues is pegged at $60.67 billion.
Cardinal Health has an estimated long-term growth rate of 10.9%. CAH’s earnings yield of 5.7% compares favorably with the industry’s 5.5%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78. The same for its revenues is pegged at $80.33 billion.
Cencora has an estimated long-term growth rate of 12.8%. COR’s earnings yield of 5.4% compares favorably with the industry’s 4.1%.
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ANGO Stock Down Despite Q4 Earnings Beat, Gross Margin Declines
Key Takeaways
AngioDynamics, Inc. (ANGO - Free Report) reported an adjusted loss per share of 3 cents for fourth-quarter fiscal 2025, narrower than the year-ago quarter’s adjusted loss per share of 6 cents and the Zacks Consensus Estimate of a loss of 13 cents.
On a pro-forma basis (excluding the divested Dialysis and BioSentry businesses, the divested PICC and Midline product portfolios and the discontinued Radiofrequency and Syntrax products), adjusted loss per share for fourth-quarter fiscal 2025 was also 3 cents, narrower than 5 cents reported in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
GAAP loss per share was 15 cents, narrower than the year-ago period’s 33 cents.
On a pro-forma basis, the fiscal fourth-quarter GAAP loss per share was also 15 cents, narrower than 33 cents a year ago.
Full-year fiscal 2025 adjusted loss per share was 15 cents, narrower than the 38 cents at the end of the comparable fiscal 2024 period and the Zacks Consensus Estimate of a loss of 29 cents per share.
On a pro-forma basis, the full-year fiscal 2025 adjusted loss per share was 25 cents, narrower than 45 cents at the end of the comparable fiscal 2024 period.
ANGO’s Revenue Details
Revenues in the fiscal fourth quarter totaled $80.2 million, up 12.9% year over year both on a reported basis and at a constant exchange rate (CER). The top line outpaced the Zacks Consensus Estimate by 7.5%.
On a pro forma basis, net sales were $80.2 million, up 12.7% both on a reported basis and at CER from the prior-year quarter.
The company continued to see strong contributions from its Med Tech (which includes the Auryon peripheral atherectomy platform, the thrombus management platform and the NanoKnife irreversible electroporation platform) and Med Device businesses during the quarter.
Full-year fiscal 2025 revenues were $292.5 million, reflecting a 3.8% decline both on a reported basis and at CER from the comparable fiscal 2024 period. The figure topped the Zacks Consensus Estimate by 1.9%.
On a pro forma basis, full-year fiscal 2025 revenues were $292.7 million, reflecting an 8.1% uptick on a reported basis and 8.2% at CER from the comparable fiscal 2024 period.
Shares of this company lost nearly 10.2% at the end of yesterday’s trading.
AngioDynamics’ Geographical Analysis
In the quarter under review, U.S. net revenues totaled $67.5 million, up 11.1% year over year. This figure compares to our U.S. net revenues’ fiscal fourth-quarter projection of $64.1 million.
On a pro forma basis, U.S. net revenues also totaled $67.5 million, up 11% year over year.
International revenues came in at $12.7 million, up 23.8% from the year-ago quarter, both on a reported basis and at CER. This figure compares to our fiscal fourth-quarter International revenues’ projection of $10.2 million.
On a pro forma basis, International revenues totaled $12.7 million, up 22.8% year over year.
ANGO’s Segmental Analysis
AngioDynamics derives revenues from two businesses — Med Tech and Med Device.
The Med Tech business’ net sales in the fiscal fourth quarter were $35.8 million, reflecting an uptick of 22% year over year. This figure compares to our fiscal fourth-quarter Med Tech business’ net sales projection of $30.3 million.
On a pro forma basis, Med Tech revenues also totaled $35.8 million, up 22% year over year. This figure compares to our fiscal fourth-quarter Med Tech business’ net sales projection of $30.3 million.
The rise was primarily on the back of increased net sales of Auryon amounting to $15.6 million (up 19.7% year over year), Mechanical Thrombectomy revenues (which includes AngioVac and AlphaVac) of $11.3 million (up 44.7% year over year) and NanoKnife disposable sales of $5.7 million (up 5.5% year over year). In the quarter, AngioVac revenues were $8.2 million (up 39.5% year over year) and AlphaVac revenues were $3.1 million (up 60.8% year over year). Total NanoKnife revenues were $7.2 million, down 2.5% year over year. NanoKnife prostate procedures in the quarter were 81% of all NanoKnife procedures.
Med Device revenues in the fiscal fourth quarter grossed $44.4 million, up 6.5% from the year-ago period. This figure compares to our fiscal fourth-quarter Med Device business’ net sales projection of $44.1 million.
On a pro forma basis, Med Device revenues totaled $44.4 million, up 6.2% from the year-ago period. This figure compares to our fiscal fourth-quarter Med Device business’ net sales projection of $44.1 million.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
AngioDynamics, Inc. price-consensus-eps-surprise-chart | AngioDynamics, Inc. Quote
AngioDynamics’ Margin Analysis
In the quarter under review, AngioDynamics’ pro forma gross profit rose 9.4% to $42.2 million. However, the pro forma gross margin contracted 161 basis points to 52.7%. We had projected a pro forma gross margin of 52.3% for fourth-quarter fiscal 2025.
Sales and marketing expenses on a pro forma basis increased 7.6% to $26.4 million year over year. Research and development expenses on a pro forma basis decreased 1.9% year over year to $6.6 million, whereas general and administrative expenses on a pro forma basis decreased 1.9% to $10.2 million. On a pro forma basis, adjusted operating expenses of $43.3 million increased 3.7% year over year.
The adjusted operating loss on a pro forma basis totaled $1 million compared with the prior-year quarter’s loss of $3.1 million.
ANGO’s Cash Position
AngioDynamics exited fiscal 2025 with cash and cash equivalents of $55.9 million compared with $76.1 million at the fiscal 2024-end.
The company ended the quarter with no debt on its balance sheet.
Cumulative net cash used in operating activities was $10.1 million compared with $28.2 million a year ago.
AngioDynamics’ FY26 Guidance
AngioDynamics has initiated its guidance for fiscal 2026.
The company expects its net sales to be in the range of $305 million-$310 million, representing growth of 4-6% from the comparable fiscal 2025 period. The Zacks Consensus Estimate is currently pegged at $308.9 million.
AngioDynamics expects its Med Tech revenue growth to be in the range of 12-15%, while Med Device revenue growth is projected to be flat over the comparable fiscal 2025 period.
Management expects the tariffs to have a limited impact on its overall top line and segmental performance.
The adjusted loss per share is projected to be between 35 cents and 25 cents, including the tariff impacts. Excluding the impacts, the adjusted loss per share is projected to be between 30 cents and 25 cents. The Zacks Consensus Estimate is currently pegged at a loss of 24 cents per share.
Our Take on ANGO
AngioDynamics exited the fourth quarter of fiscal 2025 with dismal bottom-line results. It registered a loss per share both on a reported and pro-forma basis in the quarter, which is disappointing. The pro-forma gross margin contraction does not bode well.
However, AngioDynamics’ narrower-than-expected adjusted loss per share and better-than-expected revenues in the fiscal fourth quarter raise optimism. The company recorded a narrower adjusted loss per share both on a reported and pro-forma basis in the quarter, which is encouraging. The uptick in overall revenues and geographical revenues, both on a reported basis and at CER, looked promising. The robust performance of both segments was also impressive. Robust Auryon, AngioVac, AlphaVac and NanoKnife disposable sales were also recorded during the quarter.
During the quarter, AngioDynamics received a CPT Category I Code for Irreversible Electroporation (IRE) for the treatment of lesions in the pancreas, effective Jan. 1, 2027. This expands the reimbursement pathway for NanoKnife in additional disease states, following the previously disclosed CPT Category I Code for IRE for the treatment of prostate cancer. This raises optimism about the stock.
AngioDynamics’ Zacks Rank & Key Picks
ANGO currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space that are expected to report earnings soon are Boston Scientific Corporation (BSX - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
The Zacks Consensus Estimate for Boston Scientific’s second-quarter 2025 adjusted earnings per share (EPS) is currently pegged at 72 cents. The consensus estimate for revenues is pegged at $4.89 billion. BSX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has an estimated long-term growth rate of 13.2%. BSX’s earnings yield of 2.8% compares favorably with the industry’s 1.1%.
Cardinal Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter fiscal 2025 adjusted EPS is currently pegged at $2.03. The same for revenues is pegged at $60.67 billion.
Cardinal Health has an estimated long-term growth rate of 10.9%. CAH’s earnings yield of 5.7% compares favorably with the industry’s 5.5%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78. The same for its revenues is pegged at $80.33 billion.
Cencora has an estimated long-term growth rate of 12.8%. COR’s earnings yield of 5.4% compares favorably with the industry’s 4.1%.