AngioDynamics, Inc. ANGO reported an adjusted loss per share of 11 cents for first-quarter fiscal 2025, against the year-ago quarter’s adjusted loss per share of 12 cents. The metric was also narrower than the Zacks Consensus Estimate of 15 cents.
On a pro-forma basis (excluding Dialysis and BioSentry businesses, the divested PICC, Midline, and tip location product portfolios, and discontinued RadioFrequency and Syntrax support catheter products), adjusted loss per share in first-quarter fiscal 2025 was 11 cents, narrower than 16 cents in the year-ago period.
GAAP loss per share was 31 cents, wider than the year-ago period’s earnings per share (EPS) of $1.15.
On a pro-forma basis, the GAAP loss per share in first-quarter fiscal 2025 was 32 cents, wider than 7 cents in the prior-year period.
AngioDynamics’ shares rose 3.3% in after-market trading following the earnings call.
ANGO’s Revenues in Detail
Revenues in the fiscal first quarter totaled $67.5 million, down 14.2% year over year both on a reported basis and at a constant exchange rate (CER). The top line missed the Zacks Consensus Estimate by 1.5%.
On a pro-forma basis, net sales were $67.5 million, up 1.1% year over year both on a reported basis and at CER.
The company continued to see strong contributions in the quarter from its Med Tech business, which includes the Auryon peripheral atherectomy platform, the thrombus management platform and the NanoKnife irreversible electroporation platform.
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Geographical Analysis of ANGO’s Revenues
In the quarter under review, U.S. net revenues totaled $59.5 million, down 7.6% year over year. This figure compares to our projection of $56.6 million for fiscal first-quarter U.S. net revenues.
On a pro-forma basis, U.S. net revenues totaled $59.5 million, up 6.2% year over year.
International revenues were $8 million, down 43.9% from the year-ago quarter both on a reported basis and at CER. This figure compares to our projection of $11.7 million for fiscal first-quarter International revenues.
On a pro-forma basis, International revenues totaled $8 million, down 25.4% year over year.
ANGO’s Segmental Analysis
AngioDynamics derives revenues from two businesses — Med Tech and Med Device.
The Med Tech business’ net sales in the fiscal first quarter were $28 million, reflecting a year-over-year uptick of 8.2%. This figure compares to our projection of $26.1 million for fiscal first-quarter Med Tech business’ net sales.
On a pro-forma basis, Med Tech revenues totaled $28 million, up 8.7% year over year. This was primarily on the back of Auryon’s net sales of $13.7 million, which rose 24.9% from the prior-year quarter. AlphaVac sales were $2.2 million (up 21.1% year over year). However, the improvement in the Med Tech segment was partially offset by a year-over-year decline of 6.9% in NanoKnife sales and a dip of 8% in AngioVac sales.
Med Device revenues in the fiscal first quarter grossed $39.5 million, down 25.2% from the year-ago period. This figure compares to our projection of $42.3 million for the Med Device business’s fiscal first-quarter net sales.
On a pro-forma basis, Med Device revenues totaled $39.5 million, down 3.6% year over year. This resulted from the impacts of AngioDynamics’ reorganization following the PICC and Midline divestiture (closed in February 2024), and the anticipated headwinds from the company’s manufacturing reorganization launched in January.
ANGO’s Q1 Margin Analysis
In the quarter under review, AngioDynamics’ pro-forma gross profit rose 0.3% year over year to $36.7 million. However, the pro-forma gross margin contracted 40 basis points to 54.4%. We had projected 52.4% of pro-forma gross margin for first-quarter fiscal 2025.
Sales and marketing expenses on a pro-forma basis decreased 1.1% year over year to $25.6 million. Research and development expenses on a pro-forma basis decreased 18.7% year over year to $6.3 million, whereas general and administrative expenses on a pro-forma basis increased 1.1% to $11 million. On a pro-forma basis, total operating expenses of $49.9 million decreased 0.4% year over year.
The operating loss on a pro-forma basis totaled $13.2 million compared with the prior-year quarter’s $13.6 million.
Cash Position of ANGO
AngioDynamics exited first-quarter fiscal 2025 with cash and cash equivalents of $55 million compared with $76.1 million at the fiscal 2024-end.
The company ended the quarter with no debt on its balance sheet.
Net cash used in operating activities was $18.2 million compared with net cash used in operating activities of $25.9 million a year ago.
AngioDynamics’ FY25 Guidance
ANGO reiterated its guidance for fiscal 2025.
The company expects net sales of $282-$288 million, indicating growth of 4.2-6.4% over the comparable fiscal 2024 period’s reported figure. The Zacks Consensus Estimate is pegged at $284.8 million.
AngioDynamics expects Med Tech’s year-over-year revenue growth to be 10-12%, whereas the Med Device revenue increase is projected at 1-3%.
The adjusted loss per share is projected between 38 cents and 42 cents. The Zacks Consensus Estimate is pegged at a loss of 41 cents.
Our Take
AngioDynamics exited the first quarter of fiscal 2025 with mixed results, wherein its earnings surpassed the consensus estimates and revenues missed the same. The company registered a loss per share on both reported and pro-forma basis in the quarter, which is disappointing.
ANGO’s total revenues and U.S. net revenues were down on a reported basis, whereas International revenues were down on both reported and pro-forma basis in the quarter. Med Device revenues declined in the quarter on both reported and pro-forma basis. The pro-forma gross margin contraction does not bode well.
However, AngioDynamics’ narrower-than-expected adjusted loss per share for the fiscal first quarter raises optimism. The uptick in overall revenues, U.S. net revenues and Med Tech revenues (all on a pro-forma basis), and Med Tech revenues on a reported basis looked promising. Robust Auryon and AlphaVac sales were also recorded in the quarter.
AngioDynamics, Inc. Price, Consensus and EPS Surprise
AngioDynamics, Inc. Price, Consensus and EPS Surprise
AngioDynamics, Inc. price-consensus-eps-surprise-chart | AngioDynamics, Inc. Quote
Zacks Rank & Other Stocks to Consider
AngioDynamics currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Universal Health Service UHS, Quest Diagnostics DGX and ABM Industries ABM. Universal Health Service sports a Zacks Rank #1 (Strong Buy), and Quest Diagnostics and ABM Industries carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in the trailing four quarters, the average being 14.58%.
Universal Health Service has gained 41.1% compared with the industry's 34.8% rise so far this year.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.31%.
Quest Diagnostics shares have gained 3.7% so far this year compared with the industry’s 10.2% rise.
ABM Industries’ earnings surpassed estimates in the trailing four quarters, delivering an average surprise of 7.34%.
ABM's shares have risen 24.1% so far this year compared with the industry’s 11.9% growth.
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