Angio Posts Dismal Prelim Results - Analyst Blog
March 08 2013 - 8:50AM
Zacks
AngioDynamics Inc.
(ANGO), a provider of therapeutic and diagnostic devices for the
treatment of peripheral vascular and other non-coronary diseases,
has released its preliminary financial results for the third
quarter of fiscal 2013. The company will report its full results on
Apr 9, 2013.
AngioDynamics expects to generate
total sales of $82 million in the third fiscal quarter. This is
significantly lower than the company’s previously announced
guidance of $89–$90 million. Additionally, average daily sales of
most products remained flat sequentially.
Management believes that softer
sales in the Vascular Access franchise, delayed capital equipment
sales in the Oncology/Surgery business coupled with weak procedure
volume in the Peripheral Vascular unit led to the decline in
revenues. Particularly, procedure volumes for AngioDynamics'
Cardiology and VenaCure EVLT offerings were below expectations.
As a result of softness in elective
procedures and persisting austerity measures in the market,
AngioDynamics expects adjusted net income in the range of 4 cents–6
cents per share. The current Zacks Consensus Estimates for revenues
and earnings per share for the third quarter of fiscal 2013 are $88
million and 8 cents, respectively.
However, management believes that
the unexpected lower sales were a temporary impediment and the
company is on track to achieve its financial goals going forward.
AngioDynamics successfully acquired Mircosulis, a developer of
minimally invasive microwave ablation technology for the
coagulation of soft tissues. In addition, AngioDynamics effectuated
a sole-sourced IDN agreement worth more than $2 million annually
and completed training its sales force.
On a positive note, management
affirmed its earlier target of $1 million AngioVac sales in fiscal
2013. The company shifted PICC (peripherally inserted central
catheter) accounts to the Bioflo technology in the quarter, which
now comprises 10% of total PICC revenues and generates $500,000 of
AngioVac sales.
The company currently carries a
Zacks Rank #3 (Hold). While we prefer to remain on the sidelines on
AngioDyanmics, other medical stocks such as Given Imaging
Ltd. (GIVN), Nuvasive Inc. (NUVA) and
Cyberonics (CYBX) with a Zacks Rank #1 (Strong
Buy) are worth considering.
ANGIODYNAMICS (ANGO): Free Stock Analysis Report
CYBERONICS INC (CYBX): Free Stock Analysis Report
GIVEN IMAGING (GIVN): Free Stock Analysis Report
NUVASIVE INC (NUVA): Free Stock Analysis Report
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