Angiodynamics, Inc. ((ANGO)) has held its Q2 earnings call. Read on for the main highlights of the call.
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AngioDynamics, Inc. recently held its earnings call, revealing a positive sentiment driven by strong performance in revenue growth and profitability, particularly in the Med Tech segment. Innovations such as AlphaVac and NanoKnife were highlighted as key drivers of this success. However, the company faces challenges with Med Device revenue stagnation and manufacturing transition costs, which somewhat temper the overall financial improvements.
Strong Revenue Growth
AngioDynamics reported a total worldwide revenue of $73 million, marking a 9% increase year-over-year. The Med Tech segment was a standout performer, with a robust 25% growth, underscoring the company’s successful strategies in this area.
Mechanical Thrombectomy Success
The company experienced remarkable growth in its mechanical thrombectomy products, with a combined increase of 46%. AlphaVac revenue rose by 33%, while AngioVac saw a significant 51% boost, reflecting the strong demand for these innovations.
Auryon Platform Growth
The Auryon platform also contributed significantly, generating $13.7 million in revenue, which represents a 21.8% increase compared to the previous year. This growth underscores the platform’s expanding role in AngioDynamics’ portfolio.
Positive NanoKnife Developments
NanoKnife probe revenue increased by 23%, driven by key milestones such as achieving FDA clearance for prostate tissue ablation. This progress highlights the product’s potential for future growth.
Improved Financial Performance
The company reported an adjusted EBITDA of $3.1 million, a notable improvement from a loss of $10,000 the previous year. Additionally, $2.5 million in operating cash flow was generated, showcasing AngioDynamics’ focus on enhancing profitability.
Flat Med Device Revenue
Despite overall growth, Med Device revenue remained flat compared to the second quarter of FY 2024, with only a modest 2% increase in the U.S., indicating challenges in this segment.
Ongoing Manufacturing Transition Costs
The transition to outsourced manufacturing continues to impact the Med Device gross margin, representing a challenge that the company is actively addressing.
Adjusted EPS Loss
Adjusted EPS was a loss of $0.04 per share, although this reflects an improvement from a loss of $0.08 per share in fiscal 2024, indicating a positive trend in narrowing losses.
Forward-Looking Guidance
Looking ahead, AngioDynamics provided optimistic guidance, expecting to achieve positive adjusted EBITDA for the full fiscal year. They anticipate fiscal year 2025 revenue to range between $282 million and $288 million, reflecting growth of 4.2% to 6.4%. Med Tech net sales are projected to grow by 12% to 15%, with gross margins expected to be between 52% and 53%.
In conclusion, AngioDynamics, Inc. showcased a generally positive outlook during its earnings call, bolstered by strong revenue growth and significant advancements within the Med Tech segment. While challenges persist, particularly in Med Device revenue and manufacturing transitions, the company’s strategic focus on innovation and profitability paints a promising picture for future performance.
