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What's in Store for AngioDynamics (ANGO) in Q4 Earnings?

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AngioDynamicsInc (ANGO - Free Report) is set to report fourth-quarter fiscal 2018 results on Jul 11, before market open.

In the last reported quarter, the company reported adjusted earnings of 25 cents per share, which beat the Zacks Consensus Estimate by 25% and improved 31.6% year over year. Net sales fell almost 2% year over year to $83.9 million, missing the Zacks Consensus Estimate of $86 million. The company delivered a average positive earnings surprise of 9.79% in the trailing four quarters.

For the quarter to be reported, the Zacks Consensus Estimate for earnings is pegged at 21 cents, reflecting a rise of10.5% year over year. Further, the Zacks Consensus Estimate for sales isat $89 million, showing an increase of 2.4% year over year

Let’s see how things are shaping up prior to this announcement.

AngioDynamics, Inc. Price and Consensus

 

Factors to Drive Q4 Results

AngioDynamics’ expanding product pipeline, international market expansion and cost saving initiatives will provide considerable growth opportunities in the fourth quarter.

AngioDynamics is a leading provider of minimally invasive medical devices used for vascular access, surgery, peripheral vascular disease and oncology. The company’s product lines include ablation systems, fluid management systems, vascular access products, angiographic products and accessories, angioplasty products, drainage products, thrombolytic products and venous products. These are expected to boost the company’s sales in the quarter to be reported.

Further, the company continues to witness healthy demand for its coveted NanoKnife system for treating tumors. Increased penetration of the device contributed to revenues in the company’s Oncology division.  In fact, the recent regulatory approval of VOLTA, a radiofrequency ablation device in Japan, is also a significant positive for the quarter to be reported.

The company is already looking to broaden its commercial opportunities. Along with Germany and Denmark, the company is also looking forward to achieve the same in Europe and the United Kingdom.

The Deterrents

However, in the third quarter, growth in the Fluid and Thrombus Management product lines was offset by declines in the Venous Insufficiency and Angiographic Catheter businesses. Further, declines in PICCs product line and lower sales related to the discontinued RFA product line dampened sales growth. We believe that these headwinds will persist in the fourth quarter.

What Our Model Predicts?

However, our quantitative model does not conclusively show earnings beat for AngioDynamics in this quarter. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. This is not the case here, as you will see below.

Zacks ESP: AngioDynamics currently has an Earnings ESP of 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 21 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: AngioDynamics currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, an ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 and 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies you may want to consider as our model shows that they have the right combination of elements to post earnings beat this quarter.

Wright Medical Group N.V. (WMGI - Free Report) has an Earnings ESP of +60.2% and a Zacks Rank #3.

Varian Medical Systems, Inc. (VAR - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank #3.

DexCom, Inc. (DXCM - Free Report) has an Earnings ESP of +39.7% and a Zacks Rank #3.

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