A month has gone by since the last earnings report for AngioDynamics (ANGO). Shares have added about 15.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is AngioDynamics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
AngioDynamics Q4 Earnings in Line, Revenues Beat Mark
AngioDynamics reported adjusted earnings per share of a penny for fourth-quarter fiscal 2022 compared with the year-ago breakeven earnings per share. The Zacks Consensus Estimate for the same was in line with the reported figure.
GAAP loss per share came in at 16 cents, narrower than the year-ago loss of 51 cents.
Full-year adjusted earnings per share was at a breakeven level compared with adjusted earnings per share of 5 cents at the end of fiscal 2021. The metric surpassed the Zacks Consensus Estimate of a loss of a penny.
Revenue Details
Revenues in the fiscal fourth quarter totaled $86.9 million, up 13.2% year over year on a reported basis (up 12.8% at constant exchange rate or CER). The top line exceeded the Zacks Consensus Estimate by 5.3%.
The company continued to see strong contributions from its Med Tech (which includes the Thrombectomy platform, Auryon and NanoKnife) and Med Device businesses during the quarter.
Full-year revenues were $316.2 million, reflecting an 8.7% improvement from the year-ago period. The metric topped the Zacks Consensus Estimate by 1.4%.
At CER, revenues for fiscal 2022 climbed 8.7% over fiscal 2021.
Geographical Analysis
In the quarter under review, U.S. net revenues totaled $73.7 million, up 15.9% year over year.
International revenues came in at $13.3 million, up 0.4% from the year-ago quarter on a reported basis but down 2.1% at CER.
Segmental Analysis
AngioDynamics’ product offerings fall within three GBUs — Oncology, Endovascular Therapies and Vascular Access.
The Oncology arm’s net sales in the fiscal fourth quarter were $15.1 million, reflecting an uptick of 5.8% year over year. This was primarily on the back of increased net sales of disposables of NanoKnife and Microwave.
Endovascular Therapies’ revenues in the fiscal fourth quarter grossed $45.1 million, up 18.5% from the year-ago period. This was driven by Auryon sales and strength in the thrombectomy portfolio. Auryon sales during the quarter were $9.6 million.
Revenues at the Vascular Access segment amounted to $26.7 million, up 9.3% on a year-over-year basis. The segment was boosted by a reduction in the overall backlog for Vascular Access products during the quarter and sustained strong demand for the same.
Margin Analysis
In the quarter under review, AngioDynamics’ gross profit rose 9.8% to $46.5 million. However, gross margin contracted 168 basis points (bps) to 53.4%.
Sales and marketing expenses rose 12.6% to $26.8 million year over year. Research and development expenses contracted 13.6% year over year to $7.9 million, whereas general and administrative expenses rose 21.6% year over year to $11.1 million. Adjusted operating expenses of $45.8 million increased 8.9% year over year.
Adjusted operating profit totaled $0.7 million, reflecting a 146.4% surge from the prior-year quarter’s level. Adjusted operating margin in the fiscal fourth quarter expanded 41 bps to 0.8%.
Cash Position
AngioDynamics exited fiscal 2022 with cash and cash equivalents of $28.8 million compared with $48.2 million at the end of fiscal 2021. Long-term debt (net of current portion) at the end of fiscal 2022 was $25 million compared with $20 million at the end of fiscal 2021.
Cumulative net cash used in operating activities came in at $7.2 million against net cash provided by operating activities of $24.1 million a year ago.
FY23 Guidance
AngioDynamics has issued its guidance for fiscal 2023.
The company expects its net sales to be in the range of $342-$348 million. The Zacks Consensus Estimate for the same currently stands at $336.7 million.
The adjusted earnings per share range is projected to be between a penny and 6 cents per share. The Zacks Consensus Estimate for the metric is currently pegged at 11 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -50% due to these changes.
VGM Scores
At this time, AngioDynamics has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision has been net zero. Notably, AngioDynamics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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AngioDynamics, Inc. (ANGO): Free Stock Analysis Report
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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.
