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Why Is AngioDynamics (ANGO) Up 5.02% Since Its Last Earnings Report?

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It has been about a month since the last earnings report for AngioDynamics, Inc. (ANGO - Free Report) . Shares have added about 5.02 % in that time frame.

Will the recent positive trend continue leading up to its next earnings release, or is ANGO due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Recent Earnings

AngioDynamics reported fourth-quarter fiscal 2018 adjusted earnings of 20 cents per share, which missed the Zacks Consensus Estimate by a penny. Earnings improved 5.3% year over year.

Net sales came in at $88.3 million, marginally missing the Zacks Consensus Estimate of $89 million. However, sales improved 1.6% from the prior-year figure.

Geographical Analysis

U.S. net revenues in the quarter under review were $70.3 million, down 1% at constant currency (cc). Per management, the downside can be attributed to lower sales of Venous Insufficiency, PICCs, RFA (Radio Frequency Ablation) and NanoKnife product lines.

International revenues totaled $18 million, up 9% at cc primarily owing to strong performance in Europe.

Segmental Analysis

Peripheral Vascular (PV) business

Sales in the segment came in at $52.6 million, which declined 2.5% on a year-over-year basis. Per management, growth in the Fluid Management, Angiographic catheters and AngioVac product lines was offset by declines in the Venous Insufficiency and Thrombolytic businesses.

AngioVac procedural volumes were up 14% year over year in the reported quarter.

However, the Venous Insufficiency business continued to underperform. This was due to the discontinuation of exclusive use of the EVLT products by the company’s largest customer.

Vascular Access (VA) business

Vascular Access net sales were $23.7 million, down 2.4% from the year-ago quarter. Per management, growth in Ports and Dialysis products was offset by declines in PICCs.

Oncology/Surgery business

Sales in this segment grossed $12.1 million, up a significant 38% on strong growth in the Solero Microwave Ablation System. However, an increase in sales of NanoKnife was partially offset by lower sales of RFA system.

Margin Analysis

In the quarter under review, gross profit totaled $47.5 million, up 12.1% on a year-over-year basis. Adjusted gross margin was 53.7%, which expanded 190 basis points (bps).

Adjusted operating income came in at $4.4 million against the year-over-year operating loss of $11.3 million.

Financial Condition

For the fiscal fourth quarter, AngioDynamics generated $23.8 million in operating cash flow and $23.0 million in free cash flow.

FY19 Guidance

AngioDynamics expects fiscal 2019 net sales in the range of $344-$349 million.

Adjusted earnings per share are anticipated in the band of 82-86 cents.

Free cash flow is expected between $38 million and $43 million.

How Have Estimates Been Moving Since Then?

Fresh estimates followed a downward path over the past two months. In the past month, the consensus estimate has shifted downward by 5.6% due to these changes.

AngioDynamics, Inc. Price and Consensus

VGM Scores

At this time, ANGO has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Based on our scores, the stock is more suitable for value investors than those looking for growth and momentum.

Outlook

ANGO has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.


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