It has been about a month since the last earnings report for AngioDynamics (ANGO). Shares have lost about 1.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is AngioDynamics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
AngioDyanamics Reports Q4 Loss, Revenues Lag Estimates
AngioDynamics,Inc. reported fourth-quarter fiscal 2020 adjusted loss per share of 6 cents, wider than the Zacks Consensus Estimate of a loss of 5 cents. The company reported earnings per share of 7 cents in the year-ago quarter.
For fiscal 2020, adjusted earnings was 9 cents, down from the year-ago tally by 59.1%. The bottomline lagged the Zacks Consensus Estimate of 11 cents by 18.2%.
Revenue Details
For the fiscal fourth quarter, revenues totaled $58.3 million, which lagged the Zacks Consensus Estimate by 6.3%. Further, the top line fell 18.1% on a year-over-year basis.
For fiscal 2020, revenues of the company came in at $264.2 million, which lagged the Zacks Consensus Estimate by 1.5%. Also, the top line fell 2.4% on a year-over-year basis.
Geographical Analysis
In the quarter under review, U.S. net revenues totaled $44.6 million, down 18.4% year over year.
International revenues came in at $13.7 million, down 10.9%.
Segmental Analysis
Vascular Interventions and Therapies (VIT) Business
VIT revenues in the fiscal fourth quarter grossed $22.1 million, down 28.8% from the year-ago quarter.
Vascular Access (VA) Business
Revenues at this segment amounted to $23.7 million, down 4.6% on a year-over-year basis.
Oncology/Surgery Business
Revenues at the Oncology segment declined 18% year over year to $12.5 million. Per management, higher sales of NanoKnife were more than offset by declines across the rest of the Oncology portfolio.
Margin Analysis
In the quarter under review, gross profit totaled $30.2 million, down 26.9% from the year-ago quarter number. Moreover, gross margin was 51.8%, down 628 basis points (bps).
Adjusted operating loss came in at $3.4 million against operating profit of $5.2 million in the year-ago period.
Guidance
Although AngioDynamics experienced signs of recovery throughout the quarter under review, uncertainty regarding the magnitude and extent of the pandemic kept the company from issuing the financial outlook for fiscal 2021 for now.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -700% due to these changes.
VGM Scores
Currently, AngioDynamics has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren’t focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It’s no surprise AngioDynamics has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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