AngioDynamics (ANGO) to Report Q4 Earnings: What's in the Cards?
AngioDynamics, Inc. ANGO is scheduled to release fourth-quarter fiscal 2023 results on Jul 12, before the opening bell.
In the last reported quarter, the company reported a loss of 3 cents per share compared with the Zacks Consensus Estimate of a loss of a penny. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on one occasion, lagged twice and broke even once, delivering a negative earnings surprise of 50%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Med Tech Business
In June, AngioDynamics completed the sale of its Dialysis product portfolio and BioSentry Tract Sealant System Biopsy product to Merit Medical Systems, Inc. The transaction consists of AngioDynamics’ DuraFlow, DuraMax, Evenmore, Schon XL, Trio-CT and Vaxel Plus Hemodialysis Catheter brands and BioSentry Tract Sealant System Biopsy brand. AngioDynamics’ management intends to use the net proceeds to eliminate its existing debt and support further strategic investments in growth and profitability.
AngioDynamics’ management believes that this divestiture is likely to support its focus on the high-growth Med Tech platforms and better position the company to focus on driving growth in the NanoKnife, Mechanical Thrombectomy and Auryon businesses. This raises our optimism about the company.
However, AngioDynamics’ net sales for its fiscal 2023 will be inclusive of the Dialysis Product Portfolio and BioSentry product and are expected to be in the range of $338 million to $339 million.
On the third quarter of fiscal 2023 earnings call in March, AngioDynamics confirmed that the uptick in its Med Tech net sales was driven by robust Auryon and NanoKnife sales. The company also witnessed strong NanoKnife disposable sales and AlphaVac sales. We expect the momentum for the above-mentioned products to be robust in the fiscal fourth quarter as well on the back of continued strong demand.
AngioDynamics, Inc. Price and EPS Surprise
AngioDynamics, Inc. price-eps-surprise | AngioDynamics, Inc. Quote
However, sustained lower sales of AngioVac are likely to have continued in the fiscal fourth quarter due to its nature. It is AngioDynamics’ most sensitive product and is impacted by hospital staffing challenges due to the complex nature of the procedure, requiring numerous support specialties, including perfusionists, and usually requiring an ICU bed. This is likely to have weighed on the company’s segmental performance.
We estimate the fiscal fourth-quarter Med Tech revenues to be $26.9 million, suggesting an uptick of 19.1% from the year-ago quarter’s reported figure.
Med Device Business
On the fiscal third-quarter earnings call, AngioDynamics confirmed that the Med Device segment’s strong year-over-year growth was driven by strength in the company’s angiographic products, ports, dialysis and microwave. The growth in the fiscal third quarter was also positively impacted by a less challenging comp due to the headwinds faced due to a tight labor market and supply chain disruptions in the year-ago period.
We expect the demand for the segment’s products to have continued in the fiscal fourth quarter, thereby driving the segmental revenues. However, continued higher inflationary pressures are likely to have dented the company’s segmental and overall revenues.
We estimate the fiscal fourth-quarter Med Device revenues to be $63.6 million, suggesting a decline of 1.3% from the year-ago quarter’s reported figure.
The Estimate Picture
For fourth-quarter fiscal 2023, the Zacks Consensus Estimate of $90.7 million for total revenues calls for an uptick of 4.3% from the prior-year reported figure.
The consensus estimate for earnings per share is pegged at 3 cents, implying a surge of 200% from the prior-year quarter’s reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP has higher chances of beating estimates. This is not the case here, as you can see below.
Earnings ESP: AngioDynamics has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Abbott Laboratories ABT has an Earnings ESP of +0.86% and a Zacks Rank of 2. ABT has an estimated long-term growth rate of 5.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Abbott’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 19.3%.
McKesson Corporation MCK has an Earnings ESP of +0.20% and is a Zacks #2 Rank stock. MCK has an estimated long-term growth rate of 10.8%.
McKesson’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 4.5%.
HealthEquity, Inc. HQY has an Earnings ESP of +0.98% and sports a Zacks Rank of 1 at present. HQY has an estimated long-term growth rate of 22%.
HealthEquity’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 9.1%.
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HealthEquity, Inc. (HQY) : Free Stock Analysis Report
