Stocks Buzz: AngioDynamics, Inc. (NASDAQ:ANGO)

0
69

On Thursday, Shares of AngioDynamics, Inc. (NASDAQ: ANGO) loss -4.97 percent and now trading at $15.60. Trading volume recorded for this company was about 239,285.00 shares as a contrast to its average volume of 183,886.00 shares. The stock’s intraday range is $15.16 to $16.39. The company has the total of 36.72M outstanding shares, while its market capitalization is about $572.58M.

AngioDynamics, Inc. (NASDAQ: ANGO), a most important supplier of innovative, minimally invasive medical devices for vascular access, peripheral vascular disease, surgery, and oncology, recently declared financial results for the 2nd-quarter of the fiscal year 2018, which finished November 30, 2017.

Fiscal 2018 Second Quarter Highlights:

  • Net sales of $86.70M, a decrease of 2.60% year over year
  • U.S. GAAP EPS of $0.010; Adjusted EPS of $0.160 for each share
  • Operating cash flow of $10.20M; free cash flow of $9.40M

“Our top-line performance throughout the quarter did not meet our expectations and resulted in a diminution to our complete-year net sales and free cash flow guidance. While we carry on getting better our operating efficiencies and generating notable cash flow, we recognize that revenue growth is key to accomplishing our planned aims. Our concentration on financial discipline and building a high-quality capital structure will allow us to carry on making investments in our innovative product portfolio while also pursuing planned acquisitions, both of which will make sure that we meet our longer-term revenue and planned expectations,” commented Jim Clemmer, President, and CEO of AngioDynamics, Inc.

2nd-Quarter 2018 Financial Results

Net sales for the 2nd-quarter of fiscal 2018 were $86.70M, a decline of 2.60 percent, contrast to $89.00M a year ago, mainly related to declines in the Venous Insufficiency and Core businesses, as well as declines across the majority of the Company’s Vascular Access non-BioFlo products. Throughout the similar period of the fiscal year 2017, the Company stated a $1.00M incline in sales attributable to inventory build by its clients for these Angiographic Catheter products as a result of a formerly revealed recall by a competitor. Currency did not have a noteworthy impact on the Company’s sales in the quarter.

Peripheral Vascular net sales in the 2nd-quarter of fiscal 2018 were $51.40M, a decline of 4.30 percent from $53.7M a year ago, as growth in the Fluid and Thrombus Administration product lines was offset by declines in the Venous Insufficiency and Angiographic Catheter businesses, in addition to the continued winding down of the Company’s supply agreement with Boston Scientific Corporation.

Vascular Access net sales were $22.60M, a decline of 4.20 percent from $23.60M a year ago, as growth in BioFlo related products was more than offset by declines in the remainder of the product lines. Oncology/Surgery net sales were $12.80M, an increase of 8.40 percent from $11.80M a year ago, driven mainly by incremental sales of the recently launched Solero Microwave Tissue Ablation System.

U.S. net sales in the 2nd-quarter of fiscal 2018 were $68.30M, a decline of 4.40 percent from $71.40M a year ago, mainly because of declines in the Venous, Core, and PICCs businesses, partially offset by growth in the Oncology/Surgery portfolio.

International net sales in the 2nd-quarter of fiscal 2018 were $18.40M, an increase of 4.60 percent from $17.60M a year ago, because of robust sales within the Oncology/Surgery business across numerous key markets.

Gross margin for the 2nd-quarter of fiscal 2018 declined 130.00 basis points to 49.30 percent from 50.60 percent a year ago, mainly driven by an inventory write-off related to VOLTA, the Company’s radiofrequency ablation product formerly sold in Japan. Apart From this inventory write-off, gross margin would have been 51.20 percent, an increase of 60.00 basis points year over year.

The Company recorded net income of about $0.30M, or $0.010 for each share, in the 2nd-quarter of fiscal 2018. This compares to net income of $13.70M, or $0.370 for each share, a year ago, which included adjustments to contingent liabilities from revised sales projections, resulting in a gain of $16.50M in addition to operational improvements, partially offset by a decision to discontinue investments in both EmboMedics and the Company’s TiLo product equaling $5.60M.

Apart From the items shown in the non-GAAP reconciliation table below, adjusted net income for the 2nd-quarter of fiscal 2018 was $5.80M, or $0.160 for each share, a contrast to adjusted net income of $6.90M, or $0.190 for each share, in the 2nd-quarter of fiscal 2017.

Adjusted EBITDAS in the 2nd-quarter of fiscal 2018, apart from the items shown in the reconciliation table below, was $13.30M, the contrast to $15.20M in the 2nd-quarter of fiscal 2017.

In the 2nd-quarter of fiscal 2018, the Company generated $10.20M in operating cash flow and $9.40M in free cash flow.

As of November 30, 2017, the Company had $51.10M in cash and cash equivalents and $95.00M in debt, apart from the impact of deferred financing costs.

6-Months Financial Results:

For the 6-months finished November 30, 2017, net sales were $172.10M, a decline of 2.80 percent, contrast to $177.10M for the similar period a year ago.

The Company’s net income was $0.20M, or $0.01 for each share, a contrast to net income of $15.00M, or $0.410 for each share, a year ago.

Apart From the items shown in the non-GAAP reconciliation table below, adjusted net income for the 6-months finished November 30, 2017, was $10.40M, or $0.280 for each share, a contrast to an adjusted net income of $13.30M, or $0.360 for each share, a year ago.

Adjusted EBITDAS, apart from the items shown in the reconciliation table below, was $24.60M, a contrast to $29.50M for the similar period a year ago.

The fiscal Year 2018 Financial Guidance:

Based on year-to-date business trends, the Company is reducing its formerly declared net sales and free cash flow guidance.

The Company now anticipates its fiscal year 2018 net sales in the range of $345.00 to $350.00M, contrast to the previous range of $352.00 to $359.00M, and free cash flow in the range of $30.00 to $35.00M down from greater than $35M, apart from the potential cash payment related to the formerly revealed legal matters for the Department of Justice subpoenas.

The Company reaffirms its formerly issued adjusted earnings for each share guidance range of $0.640 to $0.680, apart from any impact from the recently enacted 2017 Tax Reform Act.

Conference Call:

The Company’s administration will host a conference call recently at 8:00 a.m. ET to talk about its 2nd-quarter 2018 results.

To take part in the conference call, dial 877-407-0784 (domestic) or 201-689-8560 (worldwide) and refer to the passcode 13674426.

The stock price is going up to its 52-week low with 3.31 percent and lower from its 52-week high with -18.89 percent. The stock has shown its weekly performance of -1.44 percent and monthly performance stands at -4.81 percent. The stock price is moving up from its 200 days moving average with -7.79 percent and downward from 50 days moving average with -10.26 percent.

Analyst recommendation for this stock stands at 2.80.