Markets

Can AngioDynamics' (ANGO) Q1 Earnings Pull a Surprise?

AngioDynamics IncANGO is set to report first-quarter fiscal 2016 results on Oct 8. Last quarter, the company reported earnings of 14 cents per share, which was in line with the Zacks Consensus Estimate. However, we note that on an average, AngioDynamics has delivered a positive earnings surprise of 71.6% over the last four quarters.

Let's see how things are shaping up prior to this announcement.

Factors at Play

We believe that AngioDynamics' expanding product portfolio that includes AngioVac, Bioflo and Celerity significantly enhances its market opportunities. During the quarter, AngioDynamics launched BioFlow Midline catheters that are expected to gain significant market traction.

Moreover, improving operating efficiency and cost savings will help the company meet the gross margin target. However, the Morpheus product recall and volatile foreign exchange will hurt first-half 2016 results (revenues projected at flat to down 2%).

Earnings Whispers

Our proven model does not conclusively show that AngioDynamics is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP : AngioDynamics currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 11 cents.

Zacks Rank : AngioDynamics carries a Zacks Rank #3 which increases the predictive power of ESP. However, an ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revision momentum.

Stocks to Consider

Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Delta Air Lines Inc DAL with an Earnings ESP of +1.78% and a Zacks Rank #1.

Progressive Corp PGR with an Earnings ESP of +2.13% and a Zacks Rank #2.

SunTrust Banks Inc. STI with an Earnings ESP of +2.41% and a Zacks Rank #2.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SUNTRUST BKS (STI): Free Stock Analysis Report

ANGIODYNAMICS (ANGO): Free Stock Analysis Report

PROGRESSIVE COR (PGR): Free Stock Analysis Report

DELTA AIR LINES (DAL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ANGO PGR DAL

Other Topics

Earnings Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More