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AngioDynamics (ANGO) Down 11.7% Since Earnings Report: Can It Rebound?

Zacks Equity Research

A month has gone by since the last earnings report for AngioDynamics, Inc. ANGO. Shares have lost about 11.7% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it 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 Beats on Q3 Earnings, Raises 2017 View

AngioDynamics Inc. (ANGO), a leading provider of minimally invasive medical devices, reported adjusted earnings of $0.19 per share in the third quarter of fiscal 2017. Earnings beat the Zacks Consensus Estimate by $0.04 and increased from $0.15 in the year-ago period.

Meanwhile, net sales for the quarter came in at $85.6 million compared with $87.4 million a year ago. This also came in below the Zacks Consensus Estimate of $88 million.

Segment Details

Peripheral Vascular (PV) business sales were $48.5 million compared with $49.8 million in the year-ago quarter.

Vascular Access net sales were $23.7 million compared with $24.9 million a year ago.

Oncology/Surgery net sales in the fiscal third quarter were $13.0 million compared with $12.1 million in the year-ago quarter.

Overall U.S. net sales in the reported quarter were $67.4 million compared with $69.5 million in the year-ago quarter. Overall international net sales were $17.8 million compared with $17.2 million a year ago.

Financial Condition

AngioDynamics gave a strong cash flow performance in the third quarter of fiscal 2017. Per management, the company generated $14.4 million in operating cash flow and $14.0 million in free cash flow.

Additionally, AngioDynamics ended the quarter with $35.6 million in cash and cash equivalents. The company had an outstanding long-term debt worth $92.5 million.

Fiscal 2017 Guidance

For fiscal 2017, the company raised the adjusted earnings guidance range to 68–70 cents from 65–67 cents per share guided previously.

The company revised its revenue guidance from $355 million to $360 million to a range of $352 million to $355 million.

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

How Have Estimates Been Moving Since Then?

It turns out, fresh estimate flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.

AngioDynamics, Inc. Price and Consensus

 

AngioDynamics, Inc. Price and Consensus | AngioDynamics, Inc. Quote

VGM Scores

At this time, AngioDynamics' stock has a strong score of 'A', on both growth and momentum front. Charting a somewhat similar path, 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 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.

Based on our scores, the stock is more suitable for growth and momentum investors than value investors.

Outlook

The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.


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