Medical Devices

AngioDynamics (ANGO) Misses Q4 Earnings and Revenue Estimates

Posted on July 11, 2018

AngioDynamics' (ANGO) stock has been getting hammered, down over 12% in midday trading as the company fell short of their Q4 profit and revenue estimates. 

Net sales for the fourth quarter of fiscal 2018 were $88.3 million, an increase of 1.6%, compared to $86.9 million a year ago. During the quarter, growth in the Fluid Management, Angiographic Catheters, and AngioVac product lines, as well as two of the company's Ablation Systems, Solero® and NanoKnife®, was partially offset by declines in its Venous Insufficiency business, PICCs and Midline products.

Peripheral Vascular net sales in the fourth quarter of fiscal 2018 were $52.6 million, a decrease of 2.4% from $53.9 million a year ago, as growth in the Fluid Management, Angiographic catheters, and AngioVac product lines was more than offset by declines in the Venous Insufficiency and Thrombolytic businesses. 

Oncology/Surgery net sales were $12.1 million, an increase of 37.5% from $8.8 million a year ago, as strong growth in the Solero Microwave Ablation System and an increase in sales of NanoKnife,were partially offset by lower sales of RFA. 

Vascular Access net sales were $23.6 million, a decrease of 2.5% from $24.2 million a year ago, as growth in Ports and Dialysis products was more than offset by declines in PICCs.

“Our quarterly and full-year results showed further improvement in our operational outcomes, continuing our path to sustainable long-term growth. We are very pleased with our year-over-year gross margin expansion and solid profitability, as well as our consistent free cash flow generation,” commented Jim Clemmer, President and Chief Executive Officer of AngioDynamics, Inc. “Our Oncology ablation systems, AngioVac thrombus management product, and Fluid Management family of products are each examples of where we are well positioned to win and grow the value of the Company. We will continue to actively focus on pursuing our portfolio optimization strategy, which includes both internal and external growth opportunities. We will look to augment those areas where we currently have a product family foundation with additional opportunities to win, driving sustainable long-term revenue growth.”

Full-Year 2018 Highlights

  • Net sales of $344.3 million, a decrease of 1.5% year over year
  • Gross margin expanded 100 basis points year over year to 51.4%
  • GAAP EPS of $0.44 per share; adjusted EPS of $0.74 per share
  • Operating cash flow of $41.3 million; free cash flow of $38.9 million

AngioDynamics expects its fiscal year 2019 net sales to be in the range of $344 to $349 million and free cash flow in the range of $38 to $43 million, excluding an approximately $12.5 million cash payment to the Department of Justice related to previously disclosed legal matters. The company expects its adjusted earnings per share in the range of $0.82 to$0.86.

AngioDynamics Earnings Presentation