On May 22, we have updated our research report on
). New offerings from recent acquisitions as well as from the
organic business are expected to boost revenues in the near future.
However, soft sales in the U.S. and ongoing difficulties in the
medical device industry are causes of concern.
ANGO reported flat adjusted earnings per share of 16 cents for the
third quarter of fiscal 2014 ended Feb 28, 2014 compared with the
same quarter a year ago. Nevertheless, earnings per share exceeded
the Zacks Consensus Estimate by 6 cents. Adjusted net earnings
inched up 0.6% to $5.6 million from $5.5 million a year ago.
Revenues in the quarter went up 8.1% to $88.2 million from $81.6
million in the year-ago quarter, edging past the Zacks Consensus
Estimate of $87 million. The top line growth was driven by
double-digit sales growth in the Peripheral Vascular and
Oncology/Surgery businesses and a significant turnaround in
Vascular Access business brought about by the success of ANGO's
Given the strong sales performance in the first nine months of
fiscal 2014, ANGO raised its revenue guidance to a range of $351 to
$355 million for fiscal 2014 from the prior range of $349 to $353
million. The Zacks Consensus Estimate of $354 million lies within
the company's guided range.
ANGO lowered its adjusted earnings per share guidance for fiscal
2014 to a range of 60 to 63 cents from the prior range of 63 to 67
cents, mainly due to its current product and geographic mix, as
well as unanticipated costs related to the recent Medcomp
agreement. Nevertheless, the guided range is significantly higher
than the Zacks Consensus Estimate of 30 cents for fiscal 2014.
For the fourth quarter of fiscal 2014, ANGO anticipates revenues
between $91 and $95 million. The Zacks Consensus Estimate of $93
million lies within the company's guided range. Adjusted earnings
per share for the quarter are expected in the range of 18 to 21
cents, which is notably higher than the Zacks Consensus Estimate of
During the third quarter, ANGO completed its operational excellence
program which was announced last quarter. The program is designed
to save $15 to $18 million over the course of the next three years
through greater efficiencies and improved business performance.
Currently, ANGO retains a Zacks Rank #3 (Hold). Some better-ranked
stocks in the medical instrument industry include
Alphatec Holdings, Inc.
RTI Surgical Inc.
Natus Medical Inc.
). Both Alphatec Holdings and RTI Surgical carry a Zacks Rank #1
(Strong Buy), while Natus Medical retains a Zacks Rank #2
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