AngioDynamics, Inc. ANGO reported an adjusted loss per share of 4 cents for second-quarter fiscal 2025, narrower than the year-ago quarter’s adjusted loss per share of 5 cents and the Zacks Consensus Estimate of a loss of 11 cents.
On a pro-forma basis (excluding the divested Dialysis and BioSentry businesses, the divested PICC and Midline product portfolios and the discontinued Radiofrequency and Syntrax products), adjusted loss per share for second-quarter fiscal 2025 was also 4 cents, narrower than 8 cents reported in the year-ago quarter.
GAAP loss per share was 26 cents, narrower than the year-ago period’s 72 cents.
On a pro-forma basis, the fiscal second-quarter GAAP loss per share was also 26 cents, narrower than 74 cents a year ago.
ANGO’s Revenue Details
Revenues in the fiscal second quarter totaled $72.8 million, down 7.9% year over year both on a reported basis and at a constant exchange rate (CER). The top line outpaced the Zacks Consensus Estimate by 2.4%.
On a pro forma basis, net sales were $73 million, up 9.2% both on a reported basis and at CER from the prior-year quarter.
The company continued to see strong contributions from its Med Tech (which includes the Auryon peripheral atherectomy platform, the thrombus management platform and the NanoKnife irreversible electroporation platform) business during the quarter.
Shares of this company gained nearly 37.7% at the end of yesterday’s trading.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
AngioDynamics’ Geographical Analysis
In the quarter under review, U.S. net revenues totaled $62.7 million, down 2.1% year over year. This figure compares to our U.S. net revenues’ fiscal second-quarter projection of $60 million.
On a pro forma basis, U.S. net revenues also totaled $62.7 million, up 12.3%. International revenues came in at $10.2 million, down 32.5% and 32.6% from the year-ago quarter on a reported basis and at CER, respectively. This figure compares to our fiscal second-quarter International revenues’ projection of $11.1 million.
On a pro forma basis, International revenues totaled $10.3 million, down 6.6%.
ANGO’s Segmental Analysis
AngioDynamics derives revenues from two businesses — Med Tech and Med Device.
The Med Tech business’ net sales in the fiscal second quarter were $31.6 million, reflecting an uptick of 24.4% year over year. This figure compares to our fiscal second-quarter Med Tech business’ net sales projection of $25.6 million.
On a pro forma basis, Med Tech revenues also totaled $31.6 million, up 25%. This figure compares to our fiscal second-quarter Med Tech business’ net sales projection of $25.6 million.
The rise was primarily on the back of increased net sales of Auryon amounting to $13.7 million (up 21.8% year over year), AngioVac sales of $8.1 million (up 50.7% year over year), AlphaVac sales of $2.5 million (up 33.3% year over year) and NanoKnife disposable sales of $5 million (up 23.1% year over year). Total NanoKnife sales, including capital, were $6 million, up 4.9% from the prior-year quarter.
Med Device revenues in the fiscal second quarter grossed $41.3 million, down 23.1% from the year-ago period. This figure compares to our fiscal second-quarter Med Device business’ net sales projection of $45.5 million.
On a pro forma basis, Med Device revenues totaled $41.5 million, down 0.4% from the year-ago period. This figure compares to our fiscal second-quarter Med Device business’ net sales projection of $45.5 million.
U.S. net sales of Med Device products grew 1.6% during the fiscal second quarter from the year-ago period.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
AngioDynamics, Inc. Price, Consensus and EPS Surprise
AngioDynamics, Inc. price-consensus-eps-surprise-chart | AngioDynamics, Inc. Quote
AngioDynamics’ Margin Analysis
In the quarter under review, AngioDynamics’ pro forma gross profit rose 8.9% to $39.9 million. However, the pro forma gross margin contracted 15 basis points to 54.7%. We had projected 51.6% of pro forma gross margin for second-quarter fiscal 2025.
Sales and marketing expenses on a pro forma basis increased 6.6% to $25.6 million year over year. Research and development expenses on a pro forma basis decreased 22.8% year over year to $6.4 million, whereas general and administrative expenses on a pro forma basis increased 12.8% to $10.4 million. On a pro forma basis, adjusted operating expenses of $42.4 million increased 2.1% year over year.
The adjusted operating loss on a pro forma basis totaled $2.5 million compared with the prior-year quarter’s loss of $4.9 million.
ANGO’s Cash Position
AngioDynamics exited second-quarter fiscal 2025 with cash and cash equivalents of $54.1 million compared with $55 million at the fiscal first-quarter-end.
The company ended the quarter with no debt on its balance sheet.
Cumulative net cash used in operating activities was $15.8 million compared with $20.6 million a year ago.
AngioDynamics’ FY25 Guidance
AngioDynamics has revised its guidance for fiscal 2025.
The company continues to expect its net sales in the range of $282 million-$288 million, representing growth of 4.2-6.4% from the comparable fiscal 2024 period. The Zacks Consensus Estimate is currently pegged at $284.1 million.
AngioDynamics now expects its Med Tech revenue growth in the range of 12-15%, up from the earlier growth projection of 10-12% a year ago.
Med Device revenue growth is now projected to be flat against growth of 1-3% over the comparable fiscal 2024 period.
The adjusted loss per share is now projected to be between 34 cents and 38 cents, narrower than the earlier projection of an adjusted loss of 38 cents to 42 cents. The Zacks Consensus Estimate is currently pegged at a loss of 41 cents per share.
Our Take
AngioDynamics exited the second quarter of fiscal 2025 with dismal bottom-line results. It registered a loss per share both on a reported and pro-forma basis in the quarter, which is disappointing. The company’s total revenues and U.S. net revenues were down on a reported basis, while International revenues were down on a reported and pro-forma basis and at CER in the quarter. Med Device revenues also declined during the quarter both on a reported and pro-forma basis. The pro-forma gross margin contraction does not bode well.
However, AngioDynamics’ narrower-than-expected adjusted loss per share and better-than-expected revenues in the fiscal second quarter raise optimism. The company recorded a narrower adjusted loss per share both on a reported and pro-forma basis in the quarter, which is encouraging. The uptick in overall revenues, U.S. net revenues and Med Tech revenues (all on pro-forma basis) and Med Tech revenues on a reported basis looked promising. Robust Auryon, AngioVac, AlphaVac and NanoKnife disposable sales were also recorded during the quarter.
ANGO’s Zacks Rank & Key Picks
AngioDynamics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space that are expected to report earnings soon are Boston Scientific Corporation BSX, Abbott Laboratories ABT and Becton, Dickinson and Company BDX, popularly known as BD.
The Zacks Consensus Estimate for Boston Scientific’s fourth-quarter 2024 adjusted earnings per share (EPS) is currently pegged at 65 cents. The consensus estimate for revenues is pegged at $4.40 billion. BSX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has an estimated long-term growth rate of 13.8%. BSX’s earnings yield of 2.9% compares favorably with the industry’s 0.5%.
Abbott currently has a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter 2024 adjusted EPS is currently pegged at $1.34. The same for revenues is pegged at $11.02 billion.
Abbott has an estimated long-term growth rate of 9.1%. ABT’s earnings yield of 4.5% compares favorably with the industry’s 0.5%.
BD currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter fiscal 2025 adjusted EPS is currently pegged at $2.98. The same for its revenues is pegged at $5.11 billion.
BD has an estimated long-term growth rate of 9.6%. BDX’s earnings yield of 6.2% compares favorably with the industry’s 5.5%.
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