Back to top

Image: Bigstock

AngioDynamics (ANGO) Down 10.4% Since Last Earnings Report: Can It Rebound?

Read MoreHide Full Article

A month has gone by since the last earnings report for AngioDynamics (ANGO - Free Report) . Shares have lost about 10.4% 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 Q2 Earnings Beat Estimates, View Retained

AngioDynamics reported second-quarter fiscal 2020 adjusted EPS of 6 cents, which beat the Zacks Consensus Estimate of 2 cents. However, the bottom line dropped a significant 52.9% from the year-ago quarter.

Revenues of the company totaled $70 million, falling short of the Zacks Consensus Estimate of $71.9 million. The top line however inched up 0.03% on a year-over-year basis. Organically, revenues were flat year over year.

Geographical Analysis

In the quarter under review, U.S. net revenues totaled $55.6 million, down 1.3% year over year and at constant currency (cc).

International revenues summed $14.4 million, up 5.6%. At cc, revenues rose 6.6%.

Segmental Analysis

Vascular Interventions and Therapies (VIT) Business

VIT revenues in the second quarter grossed $31.2 million, up 0.6% from the year-ago quarter’s figure.

Per management, strong growth in AngioVac and core VIT product line drove revenues.

Vascular Access (VA) Business

Revenues at this segment amounted to $22.8 million, down 4% on a year-over-year basis. Per management, lower sales of Ports and PICCs impeded quarterly growth.

Oncology/Surgery Business

Revenues at the Oncology segment improved 5.1% year over year to $16.1 million. Per management, higher sales of NanoKnife and the Alatus and IsoLoc balloon products drove the upside.

Margin Analysis

In the quarter under review, gross profit totaled $41.5 million, up 2.4% from the year-ago quarter number. Also, gross margin was 59.3%, up 140 basis points (bps) primarily driven by productivity and supply chain improvement as well as positive product mix.

Research and development expenses were $7.8 million, up 9.7% year over year. Sales and marketing expenses totaled $19.4 million, up 4.4% on a year-over-year basis. General and administrative expenses were $11 million, up 18.7%.

Guidance

For fiscal 2020, AngioDynamics continues to expect revenues in the $280-$286 million band.

The company expects EPS within 10-15 cents.

Gross margin is projected in the range of 58-59%.

Notably, AngioDynamics anticipates investments related to the product launches acquired from Eximo in the second half of fiscal 2020.

How Have Estimates Been Moving Since Then?

Estimates review followed a downward path over the past two months. The consensus estimate has shifted -50% due to these changes.

VGM Scores

Currently, AngioDynamics has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. 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 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AngioDynamics, Inc. (ANGO) - free report >>

Published in