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AngioDynamics (ANGO) Down 8.9% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for AngioDynamics (ANGO - Free Report) . Shares have lost about 8.9% in that time frame, underperforming the S&P 500.

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

AngioDynamics Q4 Earnings Miss, FY20 Guidance Issued

AngioDynamics reported fourth-quarter fiscal 2019 adjusted earnings per share (EPS) of 25 cents, which fell short of the Zacks Consensus Estimate by a penny. The bottom line, however, increased 25% on a year-over-year basis.

Revenues of the company totaled $96.3 million, which came well ahead of the Zacks Consensus Estimate of $92.9 million. The top line also increased 9% on a year-over-year basis. Organically, the figure rose 5.2%.

Geographical Analysis

In the quarter under review, U.S. net revenues totaled $73.4 million, up 4.4% year over year.

International revenues summed $22.9 million, up significantly by 27% year over year.

Per management, foreign currency did not have any impact on the company’s revenues.

Segmental Analysis

Vascular Interventions and Therapies (VIT) Business

VIT revenues in the fourth quarter grossed $56.2 million, up 6.9% from the year-ago quarter’s figure.

Per management, strong growth in AngioVac and Core product line was partially offset by a decline in the Venous Insufficiency business.

Vascular Access (VA) Business

Revenues at this segment amounted to $24.8 million, which increased 4.9% on a year-over-year basis. Per management, strong revenues were driven by higher sales of midlines, ports and dialysis.

Oncology/Surgery Business

Revenues at the Oncology segment improved 26.5% year over year to $15.3 million. Per management, strong sales of Solero along with the recent BioSentry and RadiaDyne acquisitions helped offset lower NanoKnife capital sales during the reported quarter.

Margin Analysis

In the quarter under review, gross profit totaled $51.6 million, up 8.7% from the year-ago quarter number. Also, gross margin was 53.6%, up significantly from 40.9% in the prior-year quarter.

Research and development expenses were $7.2 million, up 11.6% year over year. Sales and marketing expenses totaled $21.8 million, up 4.5% on a year-over-year basis. General and administrative expenses were $8.6 million, up 7.7% year over year.

Net adjusted operating income summed $14 million, up 15.1% year over year. Also, operating margin in the quarter was 11.5%, up 650 basis points year over year.

Guidance

For fiscal 2020, AngioDynamics expects its revenues in the $280-$286 million band.

Adjusted EPS is expected between 25 cents and 30 cents.

The company expects gross margin to be in the 58-59% range.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

Currently, AngioDynamics has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

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

Outlook

AngioDynamics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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