AngioDynamics Shares Slide 21% Despite a First-Quarter Beat as Med Tech Growth Hits 13%

AngioDynamics, Inc. (NASDAQ: ANGO) shares fell about 21% to $11.16 Thursday morning, even though the company’s fiscal first-quarter results beat estimates. Revenue rose 6.9% to $80.9 million, and Med Tech, its higher-growth business, grew 13.2%. However, AngioDynamics only reiterated its full-year guidance instead of raising it. With a CEO change coming in November, investors took profits. Trading volume topped 1 million shares, nearly three times the daily average.

Key Points

• First-quarter revenue was $80.9 million, above the $80.5 million consensus, and the adjusted loss of $0.04 per share beat the expected $0.11 loss.
• Med Tech sales rose 13.2% to $39.9 million, the eighth straight quarter of double-digit growth.
• Gross margin rose 410 basis points to 59.4%, helped by $1.2 million in tariff refunds.
• AngioDynamics kept its fiscal 2027 guidance, and Eric Honroth takes over from Jim Clemmer as CEO on November 2.

AngioDynamics (NASDAQ: ANGO) Delivers Another Strong Med Tech Quarter

The quarter showed continued strength in AngioDynamics’ main growth products. Sales of Auryon, its laser system for clearing blocked arteries, rose 14.7% to $18.9 million. “Med Tech again led our growth, highlighted by Auryon’s 21st consecutive quarter of double-digit atherectomy growth,” said CEO Jim Clemmer.

NanoKnife, its system for destroying tumors without heat, grew fastest at 29.0%, to $8.3 million, driven by prostate procedures. NanoKnife capital sales jumped 53.5%. In addition, the FDA approved the company’s plan to start a 40-patient study of NanoKnife for benign prostatic hyperplasia, a common non-cancerous enlargement of the prostate.

Mechanical thrombectomy, which removes blood clots, grew 6.7% to $12.0 million. AlphaVac sales rose 37.4%, while AngioVac fell 5.9% against a tough comparison with last year. Meanwhile, the Med Device business grew 1.4% to $41.0 million.

Profitability Improves, but Guidance Stays the Same

AngioDynamics continues to cut its losses. Its GAAP net loss narrowed to $7.1 million, or $0.17 per share, from $10.9 million a year earlier. Adjusted EBITDA more than doubled to $5.0 million.

Still, management reiterated, rather than raised, its fiscal 2027 outlook. The company expects net sales of $336 million to $341 million, Med Tech growth of 12% to 15%, and an adjusted loss of $0.24 to $0.29 per share. It also expects gross margin to be lower in the second half. Investing.com noted that the guidance only roughly matched Wall Street’s expectations. AngioDynamics also used $15.3 million in cash from operations during the quarter and ended it with $34.0 million in cash and no debt.

“We are confident in our ability to deliver on the outlook we’ve laid out for fiscal 2027,” Clemmer said.

Leadership Transition Ahead

Clemmer is retiring after ten years as CEO, and Eric Honroth takes over as President and CEO on November 2. Meanwhile, the company keeps building clinical evidence for its products. Last week, PMV covered its support for a Jacobi Hospital study on predicting the success of clot-removal procedures in pulmonary embolism.

AngioDynamics is a member of the PRISM MedTech Index and has a market value of about $461 million. Even after Thursday’s drop, its shares are up about 39% since the index started on January 2, 2024.