Forex, Product Discontinuation To Impact AngioDynamics’ Q1

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AngioDynamics Inc. ( ANGO) projects first-quarter net sales of $83 million – $87 million, flat on the top end compared to fiscal 2015, and adjusted earnings without amortization in the range of $0.10 – $0.12 per share for the first quarter, which is scheduled to be released after the market close on Thursday, October 8.

On average, 6 analysts polled by Thomson Reuters currently expect the company to report earnings of $0.11 per share on revenues of $84.70 million. Earlier, analysts expected earnings of $0.14 per share and revenue of $91.67 million for the quarter.

The company expects sales headwinds in the first half of fiscal 2016 from foreign currency impact and the discontinuation of its Morpheus line of PICCs to reduce annual revenue growth by 2%.

Company Snapshot

AngioDynamics provides innovative medical devices used by interventional radiologists, interventional cardiologists, surgeons, and other physicians for the minimally-invasive diagnosis and treatment of cancer and peripheral vascular disease. The company sells its products in the U.S. through a direct sales force, and in international markets through a combination of direct sales and distributors.

Through acquisitions of companies such as Navilyst Medical, RITA Medical Systems and Oncobionic, as well as Diomed and FlowMedica, AngioDynamics now boasts a diverse product line that includes market-leading radiofrequency ablation and NanoKnife systems, NAMIC fluid management products, vascular access products, angiographic products and accessories, dialysis products, angioplasty products, drainage products, thrombolytic products, embolization products, venous products and targeted renal therapy products.

Growth Drivers

The company is expected to be benefited by the expanding product lines that includes BioFlo, AngioVac, and NanoKnife.

Earlier in August, AngioDynamics launched the BioFlo Midline catheter indicated for short-term intravenous therapies, which is expected to gain significant market traction.

Strong peer-reviewed published data supporting NanoKnife’s clinical efficacy in treating pancreatic and prostate cancers continues to drive increases in case volumes globally. And, AngioVac continues to impress clinically as the new generation device, while only recently released in the market, is driving broader interest among clinicians.

FY16 Guidance

For the fiscal year 2016, the company forecasts net sales of $364 million – $370 million, representing a 4% growth year-over-year at the top end of its range.

Adjusted earnings per share without amortization is projected to range between $0.62 and $0.66, 14% growth at the top end compared to fiscal 2015. Analysts currently expect earnings of $0.64 per share on revenues of $365.23 million. Previously, analysts expected earnings of $0.85 per share on revenue of $367.96 million for the fiscal year 2016.

Q4 Performance

In the last quarter, the company incurred a loss of $0.8 million or $0.02 per share, compared to a net loss of $1.2 million or $0.03 per share for the year-ago quarter.

Excluding items, adjusted net income for the fourth quarter was $5 million or $0.14 per share, compared to $6.2 million or $0.17 per share in the prior year quarter.

Net sales for the fourth quarter fell to $90.9 million from $94.1 million a year earlier.

Analysts polled by Thomson Reuters expected the company to earn $0.14 per share on revenue of $91.67 million for the fourth quarter. Analysts’ estimates typically exclude special items.

Peripheral Vascular net sales in the fourth quarter were $49.8 million compared to $50.9 million in same period of last year. Vascular Access net sales declined to $27.1 million from $28.3 million last year, and Oncology/Surgery net sales amounted to $13 million versus $13.7 million generated in the prior year period.

Overall, net sales in the U.S. were $72 million compared with $73.7 million the 2014 fourth quarter. International net sales were $17.9 million compared with $19.2 million in last year’s fourth quarter. On a constant currency basis, international sales were flat compared to the fiscal 2014 fourth quarter.

Joseph DeVivo, president and chief executive officer, said:

“Our overall financial performance during the fourth quarter was impacted by our third quarter voluntary withdrawal of our Morpheus line of PICCs and continued foreign currency headwinds. As we enter fiscal 2016, we are addressing these challenges as well as executing our plan to realize increased operational consistency and efficiencies. Executing our plan will enable us to capitalize on the market’s growing interest in our product portfolio designed to reduce healthcare delivery costs and improve patient outcomes while at the same time build cash flow from our operations.”

 

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