AngioDynamics (ANGO) Down 14.2% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for AngioDynamics (ANGO). Shares have lost about 14.2% 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 catalysts. AngioDynamics Q2 Earnings Beat Estimates, Gross Margin DeclinesAngioDynamics reported an adjusted loss per share of 4 cents for second-quarter fiscal 2025, narrower than the year-ago quarter’s adjusted loss per share of 5 cents and the Zacks Consensus Estimate of a loss of 11 cents.On a pro-forma basis (excluding the divested Dialysis and BioSentry businesses, the divested PICC and Midline product portfolios and the discontinued Radiofrequency and Syntrax products), adjusted loss per share for second-quarter fiscal 2025 was also 4 cents, narrower than 8 cents reported in the year-ago quarter.GAAP loss per share was 26 cents, narrower than the year-ago period’s 72 cents.On a pro-forma basis, the fiscal second-quarter GAAP loss per share was also 26 cents, narrower than 74 cents a year ago.ANGO’s Revenue DetailsRevenues in the fiscal second quarter totaled $72.8 million, down 7.9% year over year both on a reported basis and at a constant exchange rate (CER). The top line outpaced the Zacks Consensus Estimate by 2.4%.On a pro forma basis, net sales were $73 million, up 9.2% both on a reported basis and at CER from the prior-year quarter.The company continued to see strong contributions from its Med Tech (which includes the Auryon peripheral atherectomy platform, the thrombus management platform and the NanoKnife irreversible electroporation platform) business during the quarter.AngioDynamics’ Geographical AnalysisIn the quarter under review, U.S. net revenues totaled $62.7 million, down 2.1% year over year. On a pro forma basis, U.S. net revenues also totaled $62.7 million, up 12.3%.International revenues came in at $10.2 million, down 32.5% and 32.6% from the year-ago quarter on a reported basis and at CER, respectively.  On a pro forma basis, International revenues totaled $10.3 million, down 6.6%.ANGO’s Segmental AnalysisAngioDynamics derives revenues from two businesses — Med Tech and Med Device.The Med Tech business’ net sales in the fiscal second quarter were $31.6 million, reflecting an uptick of 24.4% year over year. On a pro forma basis, Med Tech revenues also totaled $31.6 million, up 25%.The rise was primarily on the back of increased net sales of Auryon amounting to $13.7 million (up 21.8% year over year), AngioVac sales of $8.1 million (up 50.7% year over year), AlphaVac sales of $2.5 million (up 33.3% year over year) and NanoKnife disposable sales of $5 million (up 23.1% year over year). Total NanoKnife sales, including capital, were $6 million, up 4.9% from the prior-year quarter.Med Device revenues in the fiscal second quarter grossed $41.3 million, down 23.1% from the year-ago period. On a pro forma basis, Med Device revenues totaled $41.5 million, down 0.4% from the year-ago period.U.S. net sales of Med Device products grew 1.6% during the fiscal second quarter from the year-ago period.AngioDynamics’ Margin AnalysisIn the quarter under review, AngioDynamics’ pro forma gross profit rose 8.9% to $39.9 million. However, the pro forma gross margin contracted 15 bps to 54.7%.Sales and marketing expenses on a pro forma basis increased 6.6% to $25.6 million year over year. R&D expenses on a pro forma basis decreased 22.8% year over year to $6.4 million, whereas general and administrative expenses on a pro forma basis increased 12.8% to $10.4 million. On a pro forma basis, adjusted operating expenses of $42.4 million increased 2.1% year over year.The adjusted operating loss on a pro forma basis totaled $2.5 million compared with the prior-year quarter’s loss of $4.9 million.ANGO’s Cash PositionAngioDynamics exited second-quarter fiscal 2025 with cash and cash equivalents of $54.1 million compared with $55 million at the fiscal first-quarter-end.The company ended the quarter with no debt on its balance sheet.Cumulative net cash used in operating activities was $15.8 million compared with $20.6 million a year ago.AngioDynamics’ FY25 GuidanceAngioDynamics has revised its guidance for fiscal 2025.The company continues to expect its net sales in the range of $282 million-$288 million, representing growth of 4.2-6.4% from the comparable fiscal 2024 period. The Zacks Consensus Estimate is currently pegged at $284.1 million.AngioDynamics now expects its Med Tech revenue growth in the range of 12-15%, up from the earlier growth projection of 10-12% a year ago.Med Device revenue growth is now projected to be flat against growth of 1-3% over the comparable fiscal 2024 period.The adjusted loss per share is now projected to be between 34 cents and 38 cents, narrower than the earlier projection of an adjusted loss of 38 cents to 42 cents. The Zacks Consensus Estimate is currently pegged at a loss of 41 cents per share.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.The consensus estimate has shifted -15.15% due to these changes.VGM ScoresAt this time, AngioDynamics has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, AngioDynamics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. 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