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Can AngioDynamics (ANGO) Spring a Surprise in Q1 Earnings?

Zacks Equity Research

AngioDynamics Inc. ANGO is set to report first-quarter fiscal 2018 (ending Aug 31, 2017) results on Sep 28. Last quarter, the company reported earnings of 19 cents per share, which exceeded the Zacks Consensus Estimate of 16 cents.

We note that on an average, AngioDynamics has delivered a positive earnings surprise of 23.74% in the last four quarters.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

AngioDynamics enjoys leading market share in several of its operating segments including angiographic products and thrombolytic catheters and products. The market served by the company is in excess of $1 billion and continues to grow.

AngioDynamics’ broad array of products like AngioVac, BioFlo and NanoKnife significantly enhances market opportunities. Notably, the peripheral vascular (PV) sales business has also built a strong momentum for the company.

For fiscal 2018, the company expects adjusted earnings per share in the band of 64 cents to 68 cents. The company projects fiscal 2018 revenues in the range of $352 million to $359 million. Furthermore, free cash flow is expected to be over $35 million. The earnings growth rate is expected to be higher than growth in sales, primarily because of cost curtailment initiatives.

However, declining sales in the Oncology, Vascular Access, Non-BioFlo products and NanoKnife businesses may hurt quarterly sales.

AngioDynamics, Inc. Price and EPS Surprise


AngioDynamics, Inc. Price and EPS Surprise | AngioDynamics, Inc. Quote

Earnings Whispers

Our proven model does not conclusively show that AngioDynamics is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. That is not the case here as you will see below.

Zacks ESP: AngioDynamics currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 16 cents.

Zacks Rank: AngioDynamics carries a Zacks Rank #3, which increases the predictive power of ESP. However, an ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revision momentum.

Stocks to Consider

Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:  

Aetna Inc AET has an Earnings ESP of +2.78% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Amedisys Inc AMED has an Earnings ESP of +2.21% and holds a Zacks Rank #2.

AmerisourceBergen Corporation ABC has an Earnings ESP of +1.50% and carries a Zacks Rank #3.

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