On Monday, H.C. Wainwright maintained its Buy rating and $14.00 stock price target for AngioDynamics (NASDAQ:ANGO), despite the company's net sales falling short of projections in its fiscal first-quarter 2025 report.
AngioDynamics disclosed net sales of $67.5 million for the quarter ending August 31, which did not meet the analyst's expectation of $69.0 million and represented a 14% year-over-year decline on an actual basis. However, on a pro forma basis, excluding divested and discontinued businesses and products, net sales saw a modest increase of 1.1% year-over-year.
In the detailed financial results released on October 3, the Med Tech segment of AngioDynamics reported net sales of $28.0 million, a rise of 8.7% from the previous year. Conversely, the Med Device segment experienced a decrease, with sales dropping 3.6% to $39.5 million. The company's net loss was reported at $12.8 million, or ($0.31) per share, which was more substantial than the anticipated $11.1 million loss.
The Med Tech segment's Auryon product line demonstrated a notable sales growth of 24.9%, reaching $13.7 million. AlphaVac's sales also climbed by 21.1% to $2.2 million. However, AngioVac and NanoKnife sales experienced downturns, decreasing by 8.0% and 6.9%, respectively, due to the timing of international orders. Geographically, U.S. net sales increased by 6.2% to $59.5 million, while international sales saw a significant decline of 25.4% to $8.0 million.
Despite the mixed performance, AngioDynamics' management has reiterated its full-year 2025 guidance, anticipating net sales between $282-288 million, which includes expected growth of 10-12% for the Med Tech segment and 1-3% for the Med Device segment.
They also forecast a gross margin of 52-53%, an adjusted EPS range of ($0.38-0.42) per share, and adjusted EBITDA between ($2.5 million) and $0. The analyst from H.C. Wainwright expects that AngioDynamics' net sales could show sequential growth in the fiscal second quarter of 2025.
In other recent news, AngioDynamics reported a modest 1.1% year-over-year increase in revenue for the first quarter of fiscal year 2025, totaling $67.5 million. Despite a slight miss in sales, Oppenheimer maintained a positive stance on the company, reiterating an Outperform rating. The company's MedTech segment, including Auryon and AlphaVac products, saw a nearly 9% revenue boost, despite a 4% decline in the Med Device segment.
The firm's stance comes after the company's shares experienced a downturn following the fiscal first quarter 2025 results. AngioDynamics has also announced its transition to outsourced manufacturing, which is projected to result in significant annual savings by fiscal 2027.
In terms of product performance, Auryon registered a 25% revenue growth due to new product launches and market expansion in Europe. However, NanoKnife revenue dipped by 6.9% due to a strong comparison from the previous year. AngioDynamics reaffirmed its revenue guidance for fiscal year 2025, which is expected to fall between $282 million and $288 million. These developments reflect recent changes in the company's operational strategy and market dynamics.
InvestingPro Insights
Recent InvestingPro data provides additional context to AngioDynamics' financial situation. The company's market capitalization stands at $247.87 million, reflecting its current market valuation. Despite the challenging quarter, AngioDynamics maintains a strong liquidity position, with InvestingPro Tips highlighting that the company "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations." This financial stability could be crucial as the company works to improve its performance in line with its full-year 2025 guidance.
However, investors should note that AngioDynamics is "not profitable over the last twelve months," with a negative P/E ratio of -3.58. This aligns with the company's reported net loss and the InvestingPro Tip indicating that "analysts do not anticipate the company will be profitable this year." The recent stock performance has been challenging, with a 1-week price total return of -21.59%, suggesting that the market has reacted negatively to the recent earnings report.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for AngioDynamics, providing deeper insights into the company's financial health and market position.
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