On Mar 12, Zacks Investment Research upgraded
) to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell).
Why the Upgrade?
This leading provider of innovative, minimally invasive medical
devices for vascular access, surgery, peripheral vascular disease
and oncology entered the second half of its fiscal year with
strong momentum riding on a string of U.S. Food and Drug
Administration (FDA) approvals for its new products.
AngioDynamics recently received the expanded FDA clearance for
its AngioVac cannula and circuit which has garnered strong market
acceptance across the U.S. ever since its introduction in late
2012. The company also earned an approval from FDA for its BioFlo
DuraMax chronic hemodialysis catheter - a part of its BioFlo
product lineup in the Vascular Access business.
On Jan 9, AngioDynamics reported its financial results for fiscal
2014 second quarter ended Nov 30, 2013. The adjusted earnings of
6 cents per share sharply lagged the year-ago earnings of 10
cents by 40% and missed the Zacks Consensus Estimate by a penny.
Following the earnings release, the company saw one downward
estimate revision for fiscal 2014 leading to a 2.9% decline in
the Zacks Consensus Estimate to 33 cents per share. However, due
to the lack of any further downward revision, the estimates have
remained the same till date. Further, AngioDynamics delivered
positive earnings surprises in 3 of the last 4 quarters with an
average beat of 44.4%.
Revenues inched up 2% to $88.6 million, marginally exceeding the
Zacks Consensus Estimate of $88 million. Long-term debt declined
to $140.2 million as of Nov 30, 2013 compared with $142.5 million
as of May 31, 2013. As a result, long-term debt-to-capitalization
ratio decreased 40 bps to 20.9% from 21.3% as of May 31, 2013.
AngioDynamics raised the lower end of its revenue guidance for
fiscal 2014 to $349-$353 million from the prior level of
$347-$353 million. However, the company retained its adjusted EPS
guidance in the range of 63 to 67 cents, excluding amortization
for the year.
A promising guidance, an innovative pipeline and management's
efforts to leverage operational activities represent a potential
upside for AngioDynamics going forward.
Other Stocks to Consider
Some better-ranked stocks worth reckoning in the medical
instruments industry include
Natus Medical Inc.
Syneron Medical Ltd.
). All the three stocks carry a Zacks Rank #1 (Strong Buy).
ANGIODYNAMICS (ANGO): Free Stock Analysis
NATUS MEDICAL (BABY): Free Stock Analysis
CYNOSURE INC-A (CYNO): Free Stock Analysis
SYNERON MED LTD (ELOS): Free Stock Analysis
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