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AngioDynamics (ANGO) Beats Q2 Earnings, Lifts 2017 View

Zacks Equity Research

Headquartered in Latham, NY, AngioDynamics Inc. ANGO, a leading provider of minimally invasive medical devices, reported adjusted earnings of 19 cents per share in the second quarter of fiscal 2017. The earnings figure beat the Zacks Consensus Estimate by 3 cents and increased 35.7% year over year.

Meanwhile, net sales remained unchanged on a year-over-year basis at $89 million, missing the Zacks Consensus Estimate of $91 million.

Internationally, AngioDynamics registered revenues of $17.4 million, down 2% on a year-over-year basis. However, sales in the U.S. remained almost flat at roughly $89 million.


Angiodynamics Inc. - Earnings Surprise | FindTheBest

Notably, the stock has provided positive earnings surprises in the past four trailing quarters, the average being 20.9%. AngioDynamics has returned roughly 54% over the last one year, outperforming the Zacks classified Medical Instruments sub-industry’s return of 6%.

Segment Details

Peripheral Vascular (PV) business sales were $52.9 million, compared with $51.1 million in the year-ago quarter. As a result of the Cook Medical recall, the company earned significant amount of extra revenue in this business segment.

Vascular Access (VA) sales declined almost 5.9% year over year to $23.5 million, partially offset by solid growth at BioFlo Midlines and Dialysis.

Sales at the Oncology/Surgery business decreased 5.5% from the year-ago quarter to $11.7 million owing to lower sales in ablation products and NanoKnife capital. This was however offset to some extent by high sales at the NanoKnife utilization platform.

Margin Details

Adjusted gross margin declined 80 basis points (bps) to 50.8% in the quarter. Adjusted EBITDA increased 19% on a year-over-year basis to $16.1 million. Coming to operating expenses, general & administrative (G&A) as well as sales & marketing (S&M) and research & development (R&D) expenses declined 30 bps, 20 bps and 30 bps, respectively as percentage of revenues.

Financial Condition

AngioDynamics posted a strong cash flow performance in the second quarter. Per management, the company generated $14.9 million in operating cash flow and $13.6 million in free cash flow.

Additionally, AngioDynamics ended the quarter with $35.7 million in cash and cash equivalents. The company had an outstanding debt worth $116.5 million.


For fiscal 2017, the company now expects adjusted earnings in the band of 65 cents to 67 cents per share, up from the previously provided guidance of 62 cents to 65 cents.

The company reiterated its fiscal 2017 revenue guidance at the range of $355 million to $360 million.

Furthermore, free cash flow is expected to be over $35 million.

Our Take

We are upbeat on the primary areas of strength for AngioDynamics that include the platforms of BioFlo Midline in the Vascular Access franchise and the NanoKnife within the Oncology/Surgery segment.

Zacks Rank & Key Picks

AngioDynamics has a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation ADUS, Cogentix Medical, Inc. CGNT and Penumbra Inc. PEN. All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 58.7%.

Cogentix Medical has posted a positive earnings surprise of 100% in the last reported quarter. Additionally, the company has a promising one-year return of almost 80.2%.

Penumbra has a long-term expected earnings growth rate of approximately 20%. Notably, the stock represents an impressive one-year return of almost 23%.

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AngioDynamics, Inc. (ANGO): Free Stock Analysis Report
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