AngioDynamics Posts Q1 Beat and Raised Guidance; Shares Pop 11%

AngioDynamics, Inc. (ANGO) shares jumped 11% on Thursday to close at $25.94 after the medical devices company delivered impressive fiscal first-quarter results as it continues to benefit from its strategic transformation initiatives. The company also raised its FY2022 revenue guidance above analyst expectations.

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A Q1 adjusted loss of $0.02 beat analysts’ expectations of a loss of $0.04 per share. The company reported earnings of $0.02 per share in the prior-year period.

Notably, net sales jumped 9.6% year-over-year to $77 million and exceeded consensus estimates of $71.31 million. The increase in revenues reflected a surge in Med Tech sales, which increased 68% to $17.6 million, offsetting a slight decline of 0.6% in Med Device sales to $59.4 million.

Geographically, while U.S. net sales increased 19.1%, international net sales declined 22.4% year-over-year.

On top of this, gross margins grew 120 bps to 52.1% despite increased labor, raw materials, and freight charges. (See AngioDynamics stock charts on TipRanks)

AngioDynamics Raises Fiscal Year 2022 Financial Guidance

Based on the robust Q1 results and expected growth from new product launches in the near future, management raised its financial guidance for FY2022.

The company now forecasts adjusted earnings in the range of $0.00 to $0.05 per share, while the consensus estimate is pegged at $0.04 per share.

Net sales are forecast to be in the range of $310 – 315 million, versus the consensus estimate of $307.8 million. This compares to the prior net sales guidance range of $305 – $310 million. Further, the company expects FY2022 gross margins of 55%.

AngioDynamics CEO Jim Clemmer commented, “We remain committed to investing in our Med Tech platforms to drive sustainable growth while managing through COVID-related headwinds to both our revenue and gross margin.”

He further added, “Auryon and NanoKnife accelerated their strong trajectories while continuing to gain support from clinicians, and we commenced the limited market release of our AlphaVac mechanical thrombectomy device. I am excited about the future of AngioDynamics, as our team continues to execute against the strategic plan that we laid out at our Investor & Technology Day.”

Oppenheimer analyst Steven Lichtman recently initiated coverage on AngioDynamics with a Hold rating.

Consensus among analysts is a Moderate Buy based on 1 Buys and 2 Holds. The average AngioDynamics price target of $30 implies 15.7% upside potential to current levels.

ANGO scores a 7 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations.