AngioDynamics Gains 8% After A Blowout 3Q


Shares of AngioDynamics popped 7.9% on Tuesday after the medical devices company reported impressive third-quarter results. The company also provided FY21 guidance that fared better than analysts’ estimates.

AngioDynamics’ (ANGO) 3Q revenues grew 2% year-over-year to $71.2 million despite COVID-related headwinds. Analysts were anticipating revenues of about $69 million. While U.S. net sales increased 6.9%, international net sales declined 16.1% year-over-year. The company said, “Net sales in the third quarter continued to be impacted by the disruption to procedure volumes resulting from the COVID-19 global pandemic.”

The company reported adjusted earnings of $0.02 per share in 3Q, compared to earnings of $0.01 per share in the year-ago period. Analysts were anticipating a loss of $0.02 per share. Adjusted EBITDA grew 42.1% year-over-year to $5.4 million.

The company’s CEO Jim Clemmer said, “we are encouraged by the recent improvements in our end markets and increasing availability of vaccines.” (See AngioDynamics stock analysis on TipRanks).

Meanwhile, the company raised its fiscal 2021 guidance. AngioDynamics now expects EPS in the range of $0.04-$0.06, compared with the earlier expectations of flat to $0.05 per share. Analysts were expecting EPS of $0.01. The company also raised FY21 revenues to between $285-288 million from the previous range of $278-$284 million. Analysts had predicted FY21 revenues of $283.5 million.

Following the results, Raymond James analyst Jayson Bedford raised the price target to $27 (20.2% upside potential) and maintained a Buy rating on the stock. In a note to investors, the analyst said, “We believe the near-term set-up is attractive as management’s F4Q guidance is conservative.” He added, “Longer-term, Angio is reshaping the portfolio for faster organic growth with visible product drivers.”

Overall, the rest of the Street has a cautiously optimistic outlook on the stock, with a Moderate Buy consensus rating based on 1 Buy and 1 Hold. The average analyst price target of $25.50 implies upside potential of about 13.5% to current levels. Shares have gained 141.6% in one year.

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