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Can AngioDynamics (ANGO) Surprise Earnings in Q3? - Analyst Blog

AngioDynamics Inc.ANGO is set to report its third-quarter fiscal 2015 earnings results on Apr 9. Last quarter, the company had reported a 6.3% positive earnings surprise. On an average, AngioDynamics has outpaced the Zacks Consensus Estimate of earnings by more than 100% over the last four quarters. Let's see how things are shaping up for this announcement.

Factors at Play

AngioDynamics's increasing AngioVac sales is a key growth catalyst. The FDA approval of its second generation AngioVac will benefit procedure penetration and customer base in 2015 and beyond.

AngioDynamics's Vascular Access business has seen an impressive turnaround in recent times driven by solid sales of BioFlo. Notably, the share of BioFlo products in the ports and dialysis market increased in the last quarter and the uptrend is expected to continue in the times ahead.

In Jan 2015, the company also received the FDA approval for an expanded indication for its Celerity tip location system. However, a sluggish spending environment and intense competition pose significant headwinds, going forward.

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 (Srong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: AngioDynamics has an earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 16 cents.

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

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

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:

Allison Transmission Holdings ALSN , earnings ESP of +9.23% and a Zacks Rank #1.

Broadcom Corp. BRCM , earnings ESP of +5.00% and a Zacks Rank #1.

General Motors Company GM , earnings ESP of +2.06% and Zacks Rank #1.

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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.

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