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AngioDyanamics (ANGO) Q3 Earnings and Revenues Top Estimates

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AngioDynamics, Inc. ANGO reported third-quarter fiscal 2020 adjusted earnings per share (EPS) of a penny, against the Zacks Consensus Estimate of a loss of 3 cents. However, the bottom line plummeted 80% from the year-ago quarter.

Revenues of this Zacks Rank #2 (Buy) company came in at $69.8 million, which outpaced the Zacks Consensus Estimate by 1.9%. Further, the top line improved 6.5% on a year-over-year basis.

Geographical Analysis

In the quarter under review, U.S. net revenues totaled $54.9 million, up 2.8% year over year and at constant currency (cc).

International revenues came in at $14.9 million, up 22.8%. At cc, revenues rose 23.1%.

AngioDynamics, Inc. Price, Consensus and EPS Surprise

 

AngioDynamics, Inc. Price, Consensus and EPS Surprise

AngioDynamics, Inc. price-consensus-eps-surprise-chart | AngioDynamics, Inc. Quote

Segmental Analysis

Vascular Interventions and Therapies (VIT) Business

VIT revenues in the fiscal third quarter grossed $30.6 million, up 4.3% from the year-ago quarter.

Vascular Access (VA) Business

Revenues at this segment amounted to $24.6 million, up 10.3% on a year-over-year basis. Per management, higher sales of Ports, PICCs and Midline products contributed to the quarterly growth.

Oncology/Surgery Business

Revenues at the Oncology segment improved 5.1% year over year to $14.6 million. Per management, higher sales of NanoKnife drove the upside.

Margin Analysis

In the quarter under review, gross profit totaled $40.3 million, up 5.6% from the year-ago quarter number. Moreover, gross margin was 57.8%, down 40 basis points (bps) primarily due to product mix.

Research and development expenses were $8.4 million, up 21.4% year over year. Sales and marketing expenses totaled $20.9 million, up 10.9% on a year-over-year basis. General and administrative expenses were $10.2 million, up 17%.

Guidance

Taking into account the ongoing COVID-19 pandemic, health systems across the United States, which comprise many of the company’s customers, are presently giving priority to the care of COVID-19 patients. Hence, certain procedures that AngioDynamics supports have been impacted and the trend is expected to continue. Due to the uncertainty surrounding the magnitude and duration of such impacts, the company has decided to withdraw fiscal year 2020 guidance.

Summary

AngioDynamics exited the fiscal third quarter on a strong note. The company witnessed growth across all its business segments in the quarter under review. Management continues to remain optimistic about the acquisition of the C3 Wave PICC tip location system from Medical Components Inc. Moreover, the company introduced PATHFINDER I Registry in order to examine performance and clinical outcomes of the AURYON Atherectomy System.

However, the company witnessed a contraction in gross margin in the quarter. Further, the company has taken the decision to withdraw its fiscal year 2020 guidance considering the prevailing uncertainty due to the COVID-19 pandemic.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Masimo Corporation MASI, The Cooper Companies, Inc. COO and Merit Medical Systems, Inc. MMSI. While Masimo sports a Zacks Rank of 1 (Strong Buy), both Cooper Companies and Merit Medical carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Masimo’s first-quarter 2020 revenues is pegged at $1.03 billion, suggesting a year-over-year improvement of 10.1%. The same for EPS stands at $3.55 indicating year-over-year growth of 10.3%.

The Zacks Consensus Estimate for Cooper Companies’ second-quarter fiscal 2020 revenues is pegged at $2.80 billion, suggesting year-over-year growth of 5.5%. The same for EPS stands at $12.95, indicating year-over-year improvement of 4.9%.

The Zacks Consensus Estimate for Merit Medical’s first-quarter 2020 revenues is pegged at $1.03 billion, suggesting year-over-year improvement of 3.5%. The same for EPS stands at $1.56, indicating growth of 6.9% from the year-ago period.

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