AngioDynamics Inc, a prominent player in the medical technology sector, unveiled its financial results for the second quarter (Q2) of fiscal year 2024, concluding on November 30, 2023. However, the announcement led to a decline in AngioDynamics’ stock, which opened Friday’s trading at $6.24, down from Thursday’s closing price of $7.75.
At the time of this publication, AngioDynamics Inc stock (ANGO) has witnessed a decline.
AngioDynamics Inc
Current Price: $6.24
Change : -1.52
Change (%): (-19.55%)
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AngioDynamics Inc Q2 Results Fiscal Year 2024
For the Q2 FY24, AngioDynamics reported an adjusted earnings per share (EPS) loss of $(0.05), beating the consensus of $(0.07) but marking a stark contrast from the EPS income of 1 cent reported in the same quarter a year ago.
Despite a 2.7% year-over-year increase in Q2 sales to $79.1 million, the company fell short of the analyst consensus of $82.04 million, according to data from Benzinga Pro. Med Tech net sales reached $25.4 million, reflecting a 3.5% YoY increase, driven by Auryon sales of $11.4 million during the quarter, marking a substantial 12.9% growth. Med Device net sales amounted to $53.7 million, up 2.3% YoY.
The gross margin for Q2 FY24 was 50.9%, a decline of 80 basis points compared to the gross margin of 51.7% in the second quarter of fiscal 2023. This decrease was attributed to inflationary pressures, including rising costs for labor and raw materials, as well as a shift in geographic mix.
The Adjusted EBITDA for the quarter was $1.8 million, down from $2.3 million reported a year ago.
In response to these challenges, AngioDynamics announced a strategic move, deciding to shift its manufacturing operations from a company-owned facility in upstate New York to a fully outsourced model over the next two years. This transition is anticipated to yield an approximate $15 million annualized expense reduction by fiscal year 2027, with the company expecting to achieve full-year adjusted EPS profitability in FY27.
Looking ahead, AngioDynamics provided guidance for fiscal year 2024, expecting net sales to range between $320 million and $325 million, a downward adjustment from the earlier guidance of $328 million to $333 million. This revision takes into account softer Thrombectomy sales during the fiscal second quarter, expected to persist through the latter half of the year, and various impacts related to SKU rationalization and the ongoing manufacturing restructuring.
The company anticipates a gross margin in the range of 49% to 51%, down from the initial expectation of 50% to 52%.
Furthermore, AngioDynamics forecasts an adjusted EPS loss between $(0.35) and $(0.42), a shift from the prior guidance of $(0.28) to $(0.34) and consensus estimates of $(0.32).
AngioDynamics faces headwinds in the short term but aims to navigate these challenges strategically, banking on the manufacturing shift and expense reduction to drive long-term profitability. Investors will closely watch the company’s initiatives and financial performance in the coming quarters.
