On Jan 10, we maintained our Neutral recommendation on
). We are disappointed about ANGO's fiscal second quarter but we
believe the company is positioned for long-term growth driven by
its focus on interventional peripheral products and new offerings
from recent acquisitions.
ANGIODYNAMICS (ANGO): Free Stock Analysis
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On Jan 9, AngioDynamics posted adjusted earnings of 6 cents per
share for the second quarter of fiscal 2014 that not only ebbed
sharply by 40% from 10 cents in the year-ago quarter but also
missed the Zacks Consensus Estimate by a penny. Net adjusted
earnings fell 34.5% to $2.3 million from $3.5 million a year ago.
Revenues inched up 2% to $88.6 million, marginally exceeding the
Zacks Consensus Estimate of $88 million. Excluding the planned
termination of the supply agreement with
Boston Scientific Corporation
), sales grew 3% to $87.0 million from $84.5 million in last
year's comparable quarter.
Owing to the stronger-than-expected first half results, ANGO
upgraded the low-end of its revenue guidance to $349-$353 million
for fiscal 2014 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.
For the third quarter of fiscal 2014, AngioDynamics expects
revenues to lie between $85 and $88 million, reflecting a 4-8%
increase at the top-end over the prior-year quarter. Adjusted EPS
(excluding amortization) for the quarter is expected in the range
of 15 to 18 cents.
Following the release of fiscal second quarter results, the Zacks
Consensus Estimate for fiscal 2014 earnings remained same at 34
cents per share. However, the Zacks Consensus Estimate for fiscal
2015 earnings rose 6.7% to 48 cents per share.
ANGO enjoys a leading market share in several of its operating
segments including angiographic products and thrombolytic
catheters and products. The market served by AngioDynamics is in
excess of $1 billion, and continues to grow.
However, stringent capital-spending environment in the global
economy is adversely affecting ANGO's top line. Further, the
company is exposed to a stringent regulatory environment, which
might dampen product approvals for pipeline products.
Other Stocks to Look For
Some better-ranked stocks that are performing well in the medical
instruments industry include
). Both these stocks carry a Zacks Rank #1 (Strong Buy).