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Post Earnings Coverage as AngioDynamics Adjusted EPS Soared 36%

Upcoming AWS Coverage on Becton, Dickinson and Co.

LONDON, UK / ACCESSWIRE / January 11, 2017 / Active Wall St. announces its post-earnings coverage on AngioDynamics, Inc. (NASDAQ: ANGO). The Company disclosed its Q2 FY17 financial results on January 06, 2017. The medical device maker increased its earnings and free cash flow guidance for FY17. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of AngioDynamics' competitors within the Medical Instruments & Supplies space, Becton, Dickinson and Co. (NYSE: BDX), is estimated to report earnings on February 01, 2017. AWS will be initiating a research report on Becton, Dickinson following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on ANGO; touching on BDX. Get our free coverage by signing up to:



Earnings Reviewed

For the three months ended November 30, 2016, AngioDynamics reported net sales of $89.0 million, down 0.3% compared to $89.3 million in the year ago same period. Overall revenue for the reported quarter was driven by the Company's Peripheral Vascular franchise's core business. The Company's sales numbers fell below analysts' forecasts of $91.4 million.

For Q2 FY17, AngioDynamics' gross margin was 50.6%, which was slightly below the prior-year's corresponding quarter. The Company's adjusted EBITDA in the reported quarter was $16.1 million, or $0.43 per share, compared to $13.5 million, or $0.37 per share, in the year earlier comparable quarter.

For Q2 FY17, AngioDynamics recorded net income of $13.7 million, or $0.37 on a per share basis. The Company recorded a net loss of $0.3 million, or $0.01 on a per share basis, in Q2 FY16. AngioDynamics' earnings results were primarily driven by adjustments to contingent consideration and operational improvements. The adjustments to contingent consideration comprised $16.5 million based upon a determination that both AngioVac and an R&D project related to tip location will no longer meet the necessary milestones that will require future liability payments. These gains were partially offset by a $3.6 million write-off of the intangible asset associated with the original consideration paid for the tip location project, as well as an unrelated $2.0 million write-off of the Company's investment in EmboMedics. On an adjusted basis, the Company recorded net income for Q2 FY17 of $6.9 million, or $0.19 per share, compared to an adjusted net income of $5.1 million, or $0.14 per share, in Q2 FY16. The results surpassed Wall Street's expectations for earnings of $0.16 per share.

Segment Results

During Q2 FY17, AngioDynamics' peripheral Vascular net sales totaled $52.9 million up 4.0% compared to $51.1 million in Q2 FY16. The Company stated that it capitalized on demand in its core business, enhanced by the Cook Medical recall, which included $3.6 million in revenue during the reported quarter. AngioDynamics' Vascular Access net sales in Q2 FY17 were $23.6 million down 6% compared to $25.0 million a year ago. The Company stated that declines were across the Vascular Access franchise, but were partially offset by growth in BioFlo Midlines and dialysis.

During Q2 FY17, AngioDynamics' Oncology/Surgery segment recorded net sales of $11.8 million, down 6% compared to $12.5 million in Q2 FY16. The decline was driven by lower sales in ablation products and NanoKnife capital, which is partially offset by an increase in NanoKnife utilization.
On a geographical basis, overall US net sales in Q2 FY17 were $70.8 million compared to $70.7 million in the year ago corresponding quarter. Overall International net sales in the reported quarter were $17.4 million compared to $17.9 million a year ago.

Balance Sheet

In Q2 FY17, AngioDynamics generated $14.9 million in operating cash flow and $13.6 million in free cash flow. As of November 30, 2016, the Company's cash and cash equivalents were $35.7 million and debt was $116.5 million.


AngioDynamics reiterated its FY17 revenue guidance, with net sales being projected in the range of $355 million to $360 million. The Company announced an increase in its FY17 adjusted EPS guidance from a band of $0.62 to $0.65 to a range of $0.65 to $0.67 and free cash flow guidance from greater than $30 million to greater than $35 million.

Stock Performance

On Tuesday, the stock closed the trading session at $17.45, climbing 2.65% from its previous closing price of $17.00. A total volume of 467.93 thousand shares have exchanged hands, which was higher than the 3-month average volume of 346.40 thousand shares. AngioDynamics' stock price advanced 1.99% in the last month, 0.98% in the past three months, and 20.34% in the previous six months. Furthermore, since the last twelve months, the stock skyrocketed 60.53%. The stock currently has a market cap of $646.70 million.

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SOURCE: Active Wall Street