HomeMost PopularInvestingAngioDynamics Reports Strong Q1 Earnings and Revenue Results

AngioDynamics Reports Strong Q1 Earnings and Revenue Results

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AngioDynamics, Inc. (ANGO) recently announced its first-quarter fiscal 2024 earnings, which exceeded expectations. The company reported an adjusted loss per share of 12 cents, beating the Zacks Consensus Estimate of a loss of 14 cents per share. Despite the wider loss compared to the previous year, AngioDynamicsโ€™ performance was commendable.

Revenue Details

The companyโ€™s revenues for the fiscal first quarter totaled $78.7 million, a 3.5% decrease year over year. However, it topped the Zacks Consensus Estimate by 1.3%. On a pro forma basis, excluding Dialysis and BioSentry sales, net sales were $78 million, up 5.7% compared to the prior-year quarter.

AngioDynamics saw strong contributions from its Med Tech business, driven by the success of its Auryon peripheral atherectomy platform, thrombus management platform, and NanoKnife irreversible electroporation platform.

Geographical Analysis

In the first quarter, U.S. net revenues totaled $64.4 million, representing a 6.7% decline compared to the same period last year. International revenues came in at $14.3 million, a 14.1% increase from the previous year. These figures indicate AngioDynamicsโ€™ positive performance both domestically and internationally.

Segmental Analysis

AngioDynamics generates revenue from its Med Tech and Med Device businesses. The companyโ€™s Med Tech business achieved net sales of $25.9 million, a 13.3% increase year over year, thanks to robust sales of Auryon and NanoKnife. On the other hand, the Med Device business reported revenue of $52.8 million, a 10% decline from the previous year.

Margin Analysis

AngioDynamicsโ€™ gross profit for the first quarter decreased by 5.3% to $40.1 million, resulting in a gross margin contraction of 97 basis points to 50.9%. The companyโ€™s sales and marketing expenses rose 3.1% year over year, while research and development expenses decreased by 4.7%. Adjusted operating expenses increased by 2.6% to $46.2 million.

Cash Position

AngioDynamics ended the first quarter with cash and cash equivalents of $57.6 million, compared to $44.6 million at the end of the previous fiscal year. The company used the proceeds from the divestiture of its Dialysis and BioSentry Tract Sealant System Biopsy businesses to pay off its debt during the first quarter.

FY24 Guidance

AngioDynamics reiterated its guidance for fiscal 2024, projecting net sales in the range of $328 million to $333 million. The company also expects growth in its Med Tech and Med Device revenues by 20-25% and 1-3%, respectively. The adjusted loss per share is projected to be between 28 cents and 34 cents.

Our Take

AngioDynamics had an impressive first quarter, surpassing expectations with strong revenue growth and narrowing loss per share. The companyโ€™s strong performance in its Med Tech business and solid domestic and international revenues are commendable. However, the decline in revenue from the Med Device segment and gross margin contraction raise concerns. Additionally, supply-chain disruptions and raw material inflationary pressures may impact future performance.

Overall, AngioDynamicsโ€™ first-quarter results indicate its potential for growth in the coming quarters. Investors should keep an eye on the companyโ€™s performance and monitor any developments in its key business segments.

Key Picks in the Medical Space

For investors interested in the medical sector, some key stocks to watch include DaVita Inc. (DVA), IDEXX Laboratories, Inc. (IDXX), and Boston Scientific Corporation (BSX). DaVita is expected to report strong third-quarter results, with estimated earnings per share of $1.92 and revenues of $3 billion. IDEXX Labs and Boston Scientific are also expected to deliver positive results in the upcoming quarter.

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

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