) reached 52-week high of $15.15 following its better than
expected fiscal first-quarter 2014 results and major deal with
Large Integrated Delivery Network Group ("LIDN"). Shares went up
5.2% since the earnings announcement by the company on Oct 10.
AngioDynamics revealed that it has signed a single-source,
three-year port product agreement with the Large Integrated
Delivery Network Group ("LIDN") for supplying its port lineup,
including recently approved BioFlo Port, to several hospitals run
by the group members.
LIDN is formed by eight IDNs from Premier, Inc. member healthcare
systems. It includes Adventist Health, Carolinas Healthcare
System, Fairview Health System, Henry Ford Health System,
Methodist Health System, Norton Healthcare, Park Nicollet, and
Texas Health Resource.
As per the agreement, effective Nov 1, 2013, ANGO will offer its
port lineup to 130 hospitals in the group that use ports. Every
year, LIDN Members account for roughly $3.8 billion in healthcare
expenditure, of which, up to $4 million is spent on implantable
In August this year, AngioDynamics' subsidiary, Navilyst Medical
Inc. received 510(k) clearance from U.S. Food and Drug
Administration (FDA) for its BioFlo Port built with Endexo
technology to bring down accumulation of catheter-related
thrombus. As per in-vitro blood loop model test results, BioFlo
Port catheter has 96% less thrombus accumulation on its surface
compared to non-coated conventional port catheters.
For the first quarter of fiscal 2014, ANGO's adjusted earnings of
4 cents per share beat the Zacks Consensus Estimate by a penny.
However, it was lower than the year-ago earnings of 10 cents.
Excluding amortization, adjusted EPS was 12 cents, down 25% from
16 cents reported in the year-ago quarter.
Revenues were flat year over year at $83.6 million, marginally
surpassing the Zacks Consensus Estimate of $83 million. Upon
exclusion of the planned wind-down of the supply agreement with
Boston Scientific Corporation
), revenues grew 1% in the quarter.
AngioDynamics raised its revenue guidance for fiscal 2014
following its recent distribution acquisition. Revenues are
expected to be in the range of $347-$353 million, above the
earlier guidance of $346-$352 million.
ANGO also raised its adjusted earnings per share guidance without
amortization to the range of 63-67 cents from 61-65 cents for the
fiscal year. This is mainly due to the company's debt financing
Currently, ANGO retains a Zacks Rank #2 (Buy). Other medical
instrument companies such as
Mindray Medical International Ltd
), carrying a Zacks Rank #1 (Strong Buy), and
MAKO Surgical Corp.
), carrying a Zacks Rank #2 (Buy), are also worth a look.
ANGIODYNAMICS (ANGO): Free Stock Analysis
BOSTON SCIENTIF (BSX): Free Stock Analysis
MAKO SURGICAL (MAKO): Free Stock Analysis
MINDRAY MEDICAL (MR): Free Stock Analysis
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