) reached 52-week high of $15.15 following its better than
expected fiscal first-quarter 2014 results on Oct 10. Shares went
up 1.3% after the market closed yesterday.
ANGIODYNAMICS (ANGO): Free Stock Analysis
BOSTON SCIENTIF (BSX): Free Stock Analysis
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MINDRAY MEDICAL (MR): Free Stock Analysis
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ANGO's adjusted earnings of 4 cents per share for the first
quarter of fiscal 2014 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.
The New York-based therapeutic and diagnostic devices maker
reported net loss of $0.4 million or 1 cent per share, compared
with a net loss of $0.7 million or 2 cents per share in the
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
), revenues grew 1% in the quarter.
U.S. revenues increased 2% to $67.1 million and accounted for
roughly 80% of total sales. However, international revenues
dropped 5% to $14.8 million due to internal issues, timing
adjustments and difficult capital purchasing environment.
Gross margin improved 350 basis points (bps) to 50.8% from 47.3%
a year ago. Results were also sequentially higher than the
fourth-quarter gross margin of 49.1%, led by benefits from new
products as well as improved productivity. However, adjusted
operating margin in the quarter was 4.8%, 400 bps down from 8.8%
in the year-ago quarter.
Revenues from the Peripheral Vascular product category increased
5% to $45.5 million, driven by double-digit rise in U.S. EVLT
sales and solid contribution from AngioVac. U.S. EVLT sales were
led primarily by the conversion of a competitor's customer and
the impact of the new NeverTouch product.
Vascular Access revenues dropped 5% to $25.3 million in the
quarter, as the lack of tip-location capability continues to
affect the PICC business. This was partially offset by gains in
Revenues from the Oncology/Surgery division inched down 1% to
$11.2 million due to difficult year-over-year comparisons,
particularly in NanoKnife.
Supply Agreement revenues plunged 27% to $1.6 million in the
reported quarter, mainly due to the above-mentioned wind-down of
the agreement with BSX.
AngioDynamics ended the quarter with cash and investments of
$23.9 million, almost in line with $24.0 million as of May 31,
2013. Total long-term debt (including current portion) was $146.3
million, up 2.7% from $142.5 million as of May 31, 2013. The
company's operating cash flow improved to $7.3 million from $5.6
million of net cash used in the prior-year quarter.
AngioDynamics raised its revenue guidance for fiscal 2014
following its recent distribution acquisition. Revenues are
expected to be in the range of $347 million-$353 million, above
the earlier guidance of $346 million-$352 million. This lies
within the Zacks Consensus Estimate of $350 million.
The company also raised its adjusted earnings per share guidance
without amortization to the range of 63-67 cents from 61-65 cents
for the fiscal. This is mainly due to the company's debt
For the second quarter of fiscal 2014, management expects to
generate revenues in the range of $85 million-$88 million, up 1%
on the top end. Excluding amortization, adjusted earnings per
share are anticipated between 12 cents and 15 cents.
The current Zacks Consensus Estimate for revenues and earnings
per share for the second quarter of fiscal 2014 are $88 million
and 8 cents, respectively.
AngioDynamics has commenced two new clinical trials in the
quarter. One is a multi-center study evaluating the efficiency of
the NanoKnife System for ablation of prostrate cancer. The other
is a research on the efficacy of BioFlo PICC in reducing
catheter-related thrombosis. Moreover, the National Institute for
Health and Care Excellence (NICE), in its new guidance, has
recommended ANGO's VenaCure EVLT system for the treatment of
We are encouraged with AngioDynamics' better-than-expected first
quarter results. The company is poised to grow on the back of new
products, an innovative pipeline, acquisitions as well as
management's efforts to leverage operational activities. The
company currently carries 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), warrant a look.