Yahoo Finance Here's Why You Should Retain AngioDynamics (ANGO) Stock Now
AngioDynamics, Inc. ANGO is well-poised for growth, backed by strong segmental performance and strength in NanoKnife. However, forex remains a concern.
Shares of this Zacks Rank #3 (Hold) company have lost 21% compared with the industry’s decline of 31% on a year-to-date basis. The S&P 500 Index has fallen 16.3% in the same time frame.
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ANGO — with a market capitalization of $860.5 million — designs, manufactures and sells a wide range of medical, surgical and diagnostic devices. The company’s devices are generally used in minimally invasive, image-guided procedures. The company’s earnings yield of 0.14% compares favorably with the industry’s (8.5%).
What’s Driving ANGO’s Performance?
AngioDynamics’ product offerings fall within three global business units (GBUs) — Oncology/Surgery, Endovascular Therapies and Vascular Access, with all GBUs performing impressively.
During the fourth quarter of fiscal 2022, the company’s Endovascular Therapies revenues improved 18.5% from the year-ago period. This can be attributed to the continued adoption of Auryon and the thrombectomy portfolio. Auryon sales during the quarter were $7.3 million. The mechanical thrombectomy businesses grew 11% despite the Omicron-induced impacts.
NanoKnife is one of the major products that has been witnessing solid growth over the past few months. The product had previously received FDA clearance for the surgical ablation of the soft tissue. Higher sales of disposables of NanoKnife and Microwave led to an uptick of 5.8% year over year in the Oncology arm’s net sales in the fiscal fourth quarter.
During the fiscal 2022 fourth-quarter earnings call, the company confirmed that NanoKnife disposables sales grew 16% in the reported quarter, driven by strength in the United States. U.S. NanoKnife disposables sales surged 64% in the fiscal fourth quarter.
Revenues at the Vascular Access segment amounted to $26.7 million during the fourth quarter, up 9.3% on a year-over-year basis. The segment was boosted by a reduction in the overall backlog for Vascular Access products during the quarter and sustained strong demand for the same.
What’s Weighing on the Stock?
AngioDynamics is exposed to a variety of market risks, including the effects of unfavorable changes in foreign currency exchange rates. Products manufactured in and sold in foreign markets represent a significant portion of its operations. The effects of adverse currency rate fluctuations and changes in the relative values of currencies may, in some instances, have a significant effect on AngioDynamics’ business, financial condition, results of operations and cash flows. Meanwhile, the company’s AngioVac procedure volumes are declining amid challenges resulting from the COVID-19 pandemic.
Estimates Trend
For fiscal 2023, the Zacks Consensus Estimate for revenues is pegged at $344.9 million, indicating an improvement of 9.1% from the year-ago period’s reported figure. The same for the bottom line stands at earnings of 3 cents per share. It had reported breakeven earnings in the year-ago quarter.
AngioDynamics expects its net sales to be in the range of $342-$348 million in fiscal 2023. The adjusted EPS is projected to be between a penny and 6 cents per share.
AngioDynamics, Inc. Price
AngioDynamics, Inc. price | AngioDynamics, Inc. Quote
Stocks to Consider
Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. AMN, Bio-Rad Laboratories, Inc. BIO and McKesson MCK. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare, sporting a Zacks Rank #1, reported second-quarter 2022 adjusted EPS of $3.31, which beat the Zacks Consensus Estimate by 11.8%. Revenues of $1.43 billion outpaced the consensus mark by 4.8%.
AMN Healthcare has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 15.7%.
Bio-Rad, carrying a Zacks Rank #2, reported second-quarter 2022 adjusted EPS of $3.38, which beat the Zacks Consensus Estimate by 37.4%. Revenues of $691.1 million outpaced the consensus mark by 3.9%.
Bio-Rad has a historical earnings growth rate of 31.2%. BIO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 46.8%.
McKesson reported second-quarter 2022 adjusted EPS of $5.83, which surpassed the Zacks Consensus Estimate by 9.8%. Revenues of $67.2 billion outpaced the Zacks Consensus Estimate by 5.1%. It currently carries a Zacks Rank #2.
McKesson has an earnings yield of 6.8% compared with the industry’s 4.4% yield. MCK’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 13%.
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