AngioDynamics (ANGO) Q1 Earnings and Revenues Top Estimates
AngioDynamics, Inc. ANGO reported adjusted loss per share of 12 cents for first-quarter fiscal 2024, wider than the year-ago loss of 6 cents per share. However, the adjusted loss per share was narrower than the Zacks Consensus Estimate of a loss of 14 cents per share.
Excluding Dialysis and BioSentry, on a pro-forma basis, adjusted loss per share in first-quarter fiscal 2024 was 13 cents, narrower than the adjusted loss per share of 15 cents in the prior-year period.
GAAP earnings per share (EPS) was $1.15, up 0.9% from the year-ago period’s EPS of $1.14.
Revenue Details
Revenues in the fiscal first quarter totaled $78.7 million, down 3.5% year over year both on a reported basis and at constant exchange rate (CER). The top line topped the Zacks Consensus Estimate by 1.3%.
On a pro forma basis, excluding sales of Dialysis and BioSentry, net sales were $78 million, up 5.7% (up 5.8% at CER) compared with the prior-year quarter.
The company continued to see strong contributions from its Med Tech (which includes the Auryon peripheral atherectomy platform, the thrombus management platform and the NanoKnife irreversible electroporation platform) business during the quarter.
Geographical Analysis
In the quarter under review, U.S. net revenues totaled $64.4 million, down 6.7% year over year. This figure compares to our U.S. net revenues’ fiscal first-quarter projection of $64.8 million.
Excluding sales of Dialysis and BioSentry, U.S. net revenues totaled $63.7 million, up 2.1%.
International revenues came in at $14.3 million, up 14.1% from the year-ago quarter on a reported basis and up 14.4% at CER. This figure compares to our fiscal first-quarter International revenues’ projection of $12.8 million.
Excluding sales of Dialysis and BioSentry, International revenues also totaled $14.3 million, up 25.7%.
Segmental Analysis
AngioDynamics derives revenues from two businesses — Med Tech and Med Device.
The Med Tech business’ net sales in the fiscal first quarter were $25.9 million, reflecting an uptick of 13.3% year over year. This was primarily on the back of increased net sales of Auryon amounting to $11.1 million (up 25.7%) and NanoKnife disposable sales of $4.3 million (up 34.5%) compared with the prior-year quarter. AlphaVac sales in the reported quarter were $1.8 million, up 1.8% year over year. However, the improvement in the Med Tech segment was partially offset by a decline of 7.7% in AngioVac sales, which amounted to $6.3 million in the quarter. This figure compares to our fiscal first-quarter’s Med Tech business’ net sales projection of $27.8 million.
Med Device revenues in the fiscal first quarter grossed $52.8 million, down 10% from the year-ago period. This figure compares to our fiscal first quarter’s Med Device business’ net sales projection of $49.8 million.
Excluding sales of Dialysis and BioSentry, Med Device revenues totaled $52.1 million, up 2.3%.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
AngioDynamics, Inc. price-consensus-eps-surprise-chart | AngioDynamics, Inc. Quote
Margin Analysis
In the quarter under review, AngioDynamics’ gross profit fell 5.3% to $40.1 million. The gross margin contracted 97 basis points to 50.9%. We had projected 49.4% of gross margin for first-quarter fiscal 2024.
Sales and marketing expenses rose 3.1% to $27.4 million year over year. Research and development expenses decreased 4.7% year over year to $7.9 million, whereas general and administrative expenses increased 7.5% year over year to $10.9 million. Adjusted operating expenses of $46.2 million increased 2.6% year over year.
The adjusted operating loss totaled $6.1 million, wider than the prior-year quarter’s adjusted operating loss of $2.7 million.
Cash Position
AngioDynamics exited first-quarter fiscal 2024 with cash and cash equivalents of $57.6 million compared with $44.6 million at the end of fiscal 2023. The company used the proceeds from the divestiture of its Dialysis and BioSentry Tract Sealant System Biopsy businesses to extinguish its debt during the fiscal first quarter.
Net cash used in operating activities was $25.9 million compared with $24.7 million a year ago.
FY24 Guidance
AngioDynamics has reiterated its guidance for fiscal 2024.
The company continues to expect its net sales in the range of $328 million-$333 million. The Zacks Consensus Estimate for the same is currently pegged at $328.6 million.
AngioDynamics also continues to project its Med Tech and Med Device revenue growths in the range of 20-25% and 1-3%, respectively.
The adjusted loss per share is continued to be projected between 28 cents and 34 cents. The Zacks Consensus Estimate for the same currently stands at a loss of 33 cents.
Our Take
AngioDynamics exited the first quarter of fiscal 2024 with better-than-expected results. The solid uptick in revenues and narrower adjusted loss per share (both on a pro forma basis) were impressive. Robust domestic revenues (on a pro forma basis) and international revenues (both reported and on a pro forma basis) were also encouraging. The company continued gaining from its Med Tech business, which was promising. Robust sales of Auryon and NanoKnife looked encouraging. Strength in the Med Device segment on a pro forma basis raised optimism.
However, AngioDynamics’ dismal top-line and bottom-line performances on a reported basis and lower revenues from AngioVac sales in the fiscal first quarter were disappointing. Lower U.S. revenues and Med Device segment’s revenues on a reported basis were also worrying. The gross margin contraction does not bode well. Continued supply-chain disruptions and raw material inflationary pressures also raise apprehension.
Zacks Rank & Key Picks
AngioDynamics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space that are supposed to report earnings soon are DaVita Inc. DVA, IDEXX Laboratories, Inc. IDXX and Boston Scientific Corporation BSX.
The Zacks Consensus Estimate for DaVita’s third-quarter 2023 adjusted EPS is currently pegged at $1.92. The consensus estimate for revenues is pegged at $3 billion. DVA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita has an estimated long-term growth rate of 12.7%. DVA’s earnings yield of 7.9% compares favorably with the industry’s 4.4%.
IDEXX currently has a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter 2023 adjusted EPS is currently pegged at $2.37. The same for revenues is pegged at $923.9 million.
IDXX has an estimated long-term growth rate of 17.6%. IDEXX’s earnings yield of 2.3% compares favorably with the industry’s negative yield.
Boston Scientific currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter 2023 adjusted EPS is currently pegged at 48 cents. The same for its revenues stands at $3.47 billion.
BSX has an estimated long-term growth rate of 12.8%. Boston Scientific’s earnings yield of 3.9% compares favorably with the industry’s negative yield.
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