AngioDynamics (NASDAQ:ANGO) reported net sales of $78.7 million in the first quarter of fiscal 2024, a modest increment of 5.7% on a pro-forma basis when Dialysis and BioSentry sales are excluded.
Interestingly, the company’s sales break into two streams: Medtech and Medical Devices. Medtech, the lion’s share of the revenue, posted a 13.3% YoY increase to $25.9 million whereas Med Devices moved at a glacial pace, registering a mere 2.3% growth to $52.8 million.
Despite the sluggish headline numbers, AngioDynamics managed to surprise analysts by exceeding analysts consensus estimate with a loss of $0.12.
The company has a history of beating or closely aligning with analysts’ expectations and has surpassed the consensus EPS estimates twice in the past fiscal year so this came as a surprise, causing the share price to drop.
Financials & Growth
The company’s gross margin of 50.9% showed a slight decline on a pro-forma basis year-over-year. Despite inflationary pressures on labor and raw materials, the Med Tech business improved its gross margin by 1.5%, reaching 64.7%.
The healthtech firm ended the quarter with over $57 million in cash and cash equivalents, indicating strong liquidity reserves.
For investors seeking new innovations from the firm, one such example is NanoKnife, which recorded disposable sales of $4.3 million, representing growth of 34.5%.
Excluding sales of Dialysis and BioSentry, international net sales saw an impressive 25.7% increase compared to the prior year.
What Does The Future Look Like?
The current consensus EPS estimate for the coming quarter is a loss of $0.08 on $81.98 million in revenues. For the current fiscal year, the estimate is a loss of $0.33 on $328.56 million in revenues.
In spite of the optimistic outlook, AngioDynamics has underperformed this year, with shares dropping by almost 45% compared to the S&P 500’s double digit percentage gain.
The Medtech sector and international market are bustling with potential for Angiodynamics, but its stock performance suggest a wary outlook is best. The company’s dual nature, combined with its Q1 2024 performance, means that investors need to view the stock with a skeptical eye for now.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.
