AngioDynamics (ANGO) Q2 2019 Earnings Prep

in EARNINGS/INVESTING IDEAS by

AngioDynamics, Inc. (NASDAQGS:ANGO) is scheduled to report Q2 earnings results on January 7, 2020 before markets open for trading. Company management will host a conference call at 8:00 a.m. ET the same day to discuss the results.

The company is expected to report earnings of $0.02/share on revenue of $70.75 million. The consensus earnings per share (EPS) of $0.02/share is based on a poll of 3 analysts and represents a decline of -90.9% over the same quarter last year when the company reported earnings of $0.22/share.

The revenue forecast of $70.75 million based on a poll of 3 analysts implies a year-over-year (YoY) decline of -22.7%. Last year the company reported $91.503 million in revenue for the quarter.

Expected to report EPS decline of -$0.20/share for Q2, 2019
Metric Expected Prior Year YoY Change
Revenue $70.75 $91.50 -22.7%
EPS $0.02 $0.22 -90.9%

Earnings Call Trends

Historically, management has exceeded analyst expectations 3 out of the last 8 tracked quarters, and missed expectations 5 quarters.

What are your expectations from AngioDynamics for earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q1, 2020 $0.04 $0.08 100.0% Beat
Q4, 2019 $0.26 $0.25 -2.0% Missed
Q3, 2019 $0.22 $0.19 -13.6% Missed
Q2, 2019 $0.20 $0.22 7.3% Beat
Q1, 2019 $0.18 $0.16 -11.1% Missed
Q4, 2018 $0.21 $0.20 -4.8% Missed
Q3, 2018 $0.20 $0.25 25.0% Beat
Q2, 2018 $0.17 $0.16 -5.9% Missed

One question we always consider here at the Bankers’ Tribune is how important are earnings reports to AngioDynamics’s stock price performance? It’s more important for some companies than for others.

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending August 31, 2019, the stock price reacted by falling by -17.6%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-03 $17.71 $14.60 -17.6% Decline
2019-07-10 $20.50 $21.89 6.8% Increase
2019-04-02 $25.01 $23.09 -7.7% Decline
2019-01-04 $19.43 $21.52 10.8% Increase

Fundamentals And Technical Analysis

AngioDynamics is currently trading at $16.90/share, up 2.5% for the day. The company is trading at approximately 66.3% of its 52-week high of $25.48/share. The company’s stock price is up 15.8% since the last earnings report and up 5.6% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 66.77 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of -92.4x and a forward P/E multiple of 137.9x.

AngioDynamics’s current share price also implies a price-to-book (P/B) multiple of 1.0x. The following table summarizes some other key fundamental ratios:

Data as of January 6, 2020
Metric Value
Last Fiscal Period FY2020.Q1
Period End Date August 31, 2019
Stock Price (Current) $16.90
P/E Ratio -92.4x
P/E Ratio (Fwd) 137.9x
PEG Ratio 0.9
Total Debt to Capital (%) 0.8%
Levered Free Cash Flow $35.952 million
Enterprise Value / EBITDA 20.6x

Source: Finbox

Company Profile: AngioDynamics, Inc.

AngioDynamics, Inc. is a small-cap stock with a market capitalization of $635.8 million and a total enterprise value of $557.2 million. The company operates in the Healthcare sector and Healthcare Equipment & Supplies industry.

AngioDynamics designs, manufactures, and sells various medical, surgical, and diagnostic devices for the treatment of peripheral vascular disease, vascular access, and for use in oncology and surgical settings in the United States and internationally. The company provides NanoKnife ablation systems for the surgical ablation of soft tissues; solero microwave tissue ablation systems; and radiofrequency ablation products for ablating solid cancerous or benign tumors. It also offers BioSentry tract sealant systems; IsoLoc Endorectal Balloon’s; alatus vaginal balloon packing systems; and OARtrac system, which offers real-time dose data physically delivered during various cancer treatments. In addition, the company provides manifolds, contrast management systems, closed fluid systems, guidewires, disposable transducers, and interventional accessories that help clinicians in the diagnosis and treatment of cardiovascular and peripheral vascular diseases.

Additionally, the company offers peripherally inserted central catheters, midline catheters, implantable ports, dialysis catheters, and related accessories and supplies. It sells and markets its products to interventional radiologists, interventional cardiologists, vascular surgeons, urologists, interventional and surgical oncologists, and critical care nurses directly, as well as through distributor relationships.

The company was founded in 1988 and is headquartered in Latham, New York.

 

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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