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AngioDynamics (ANGO) Down 1.6% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for AngioDynamics (ANGO - Free Report) . Shares have lost about 1.6% 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 drivers.

AngioDyanamics Q3 Earnings and Revenues Top Estimates

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

Revenues of the 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%.

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.

How Have Estimates Been Moving Since Then?

Fresh estimates followed a downward path over the past two months. The consensus estimate has shifted -280% due to these changes.

VGM Scores

Currently, AngioDynamics has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

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

Outlook

AngioDynamics has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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