AngioDynamics (NASDAQ:), the medical device manufacturer, reported a 6% year-over-year increase in revenue to $78 million in its fiscal year 2024 first quarter results. Despite a loss of $0.13 in adjusted pro forma EPS, the company demonstrated progress in its strategic initiatives, including significant growth in international businesses and advancements in its NanoKnife and Auryon platforms.
Key takeaways from the call include:
- AngioDynamics’ international businesses saw a 26% year-over-year growth, particularly in its MedTech and MedDevice segments.
- The company made significant progress in its PRESERVE study, which aims to prove the safety and effectiveness of its NanoKnife treatment for intermediate-risk prostate cancer. The company plans to submit data to the FDA in Q3 of 2024.
- The company’s Auryon platform grew 26% year-over-year, with plans to launch catheters for small vessel DVT treatment in 2025.
- AngioDynamics’ Med Device segment posted solid results, primarily driven by growth in ports and the Solero Microwave Ablation System.
- Despite a 6% year-over-year decline in its mechanical thrombectomy business, the company received breakthrough designation for the use of AngioVac to remove right heart vegetation.
In terms of financial performance, the company’s Med Tech platform revenue grew by 13.3% year-over-year to $25.9 million, while Med Device revenue grew by 2.3% to $52.1 million. The Auryon platform contributed $11.1 million in revenue, growing by 25.7% year-over-year. Mechanical thrombectomy revenue, including AngioVac and AlphaVac sales, declined by 5.8% year-over-year.
The company expects FY ’24 revenue to be in the range of $328 million to $333 million, with gross margin expected to be in the range of 50% to 52%. Med Tech revenue growth is expected to be in the range of 20% to 25%, while Med Device revenue growth is expected to be in the range of 1% to 3%. The company anticipates becoming cash flow positive by the end of FY ’25.
During the earnings call, CEO Jim Clemmer discussed the company’s strategy of focusing on increasing utilization with existing lasers in the Auryon business. He also mentioned the progress of their AngioVac and AlphaVac products, with plans to launch design enhancements for AlphaVac next year. The company expects sustainable growth for NanoKnife and Auryon and is considering potential product line divestitures.
Clemmer expressed confidence in their unique device despite acknowledging the challenges of being the third player in the market. He also highlighted the company’s transformation towards being highly differentiated by their science and technology, and expressed gratitude to AngioDynamics employees.
When asked about stock buybacks, the company stated that they have a strong balance sheet and will consider it in the future but currently prioritize stability and cash utilization. The enrollment for APEX is expected to be completed by early 2024, and the company mentioned the possibility of a stock buyback in the future.
According to InvestingPro data, AngioDynamics has a market cap of $294.54 million and a negative P/E ratio of -5.60. Despite the challenges, the company holds more cash than debt on its balance sheet, as per InvestingPro Tips. The company has also been profitable over the last 12 months. The company’s revenue growth has been slowing down recently, with a revenue growth of 4.71% in the last 12 months till Q1 2024. The company’s shares have been trading at a high earnings multiple, indicating a strong market expectation of future earnings growth.
Despite not paying dividends to shareholders, AngioDynamics has a high shareholder yield, indicating a strong return on investment for shareholders. The company’s liquid assets exceed its short-term obligations, indicating a strong financial position. However, analysts do not anticipate the company will be profitable this year.
For more insights, InvestingPro offers additional tips and real-time metrics for AngioDynamics, which can be accessed here.
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