Post Earnings Coverage as AngioDynamics Adjusted Earnings Soar 55%

October 7, 2016   |   9:15 am

Contributor: Tom Johnson, Active Wall Street

Active Wall St. announces its post-earnings coverage on AngioDynamics Inc. (NASDAQ: ANGO). The company posted its fiscal 2017 first quarter results on October 05th, 2016. The provider of minimally invasive medical devices used for vascular access, surgery, peripheral vascular disease, and oncology topped market expectations and also reaffirmed its FY17 outlook. Register with us now for your free membership at: http://www.activewallst.com/register/.

Today, AWS is promoting its earnings coverage on ANGO. Get our free coverage by signing up to: http://www.activewallst.com/registration-3/?symbol=ANGO.

Earnings Reviewed

For the three months ended on August 31st, 2016, AngioDynamics reported sales of $88.1 million; an increase of 5% compared with $83.8 million a year ago and topped analysts’ estimates of $86 million.

For Q1 FY17, the Company recorded net income of $1.3 million, or $0.04 on a per share basis, driven by volume growth and continued margin improvement compared to a net loss of $0.8 million, or $0.02 on a per share basis, in Q1 FY16. On an adjusted basis, AngioDynamics reported net income of $6.4 million, or $0.17 per share, up by 54.5% compared to an adjusted net income of $4.0 million, or $0.11 per share, in Q1 FY16, beating Wall Street’s expectations of earnings of $0.13 per share. The rise in earnings was attributed to growth in the Peripheral Vascular franchise leveraging opportunities created by the Cook Medical recall in May 2016.

Segment Results

During Q1 FY17, AngioDynamics reported that Peripheral Vascular net sales were $51.4 million up 9% compared to $47.1 million in Q1 FY16, driven primarily by growth in its core business. The company generated Vascular Access net sales of $25.0 million in the reported quarter, increased by 1% compared to $24.6 million a year ago. Oncology/Surgery net sales in Q1 FY17 were $11.1 million, down 2% compared to $11.3 million in Q1 FY16, primarily driven by lower RF sales. On a geographical basis, US net sales in Q1 FY17 were $71.8 million compared to $68.4 million in the year ago first quarter. Overall International net sales in the reported quarter were $15.7 million compared to $14.7 million a year ago.

Operating Metrics

Gross margin for Q1 FY17 was 51.1%, up 30 basis points compared to Q4 FY16, primarily driven by the company’s ability to leverage increased volume due to the Cook Medical recall. Gross margins were 70 basis points lower than Q1 FY16 on pricing pressure and the mix of products sold. Adjusted EBITDA in Q1 FY17 was $14.9 million, or $0.40 per share, compared to $11.6 million, or $0.32 per share, in Q1 FY16.

Balance Sheet

During Q1 FY17, AngioDynamics generated $7.4 million in operating cash flow and $7.0 million in free cash flow. As of August 31, 2016, the company’s cash and cash equivalents were $37.4 million versus $32.2 million at the end of the year-ago period Long-term debt was $100.7 million as of August 31, 2016, compared to $104.3 million as of May 31, 2016. Cash flow from operations was $7.4 million in the reported quarter versus $4.7 million a year ago.

Outlook

The Company announced its FY17 guidance will remain unchanged, with net sales guidance of $355 million to $360 million and adjusted earnings in the range of $0.62 per share to $0.65 per share. The Company reiterated its FY17 free cash flow guidance of greater than $30 million.

Stock Performance

At the closing bell, on Thursday, October 06, 2016, AngioDynamics’ stock climbed slightly by 0.33%, ending the trading session at $16.53. A total volume of 544.71 thousand shares were traded at the end of the day, which was higher than the 3-month average volume of 259.40 thousand shares. In the last one month and previous three months, shares of the company have advanced 13.97% and 50.23%, respectively. Moreover, the stock gained 36.12% since the start of the year.

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