Angiodynamics, Inc. ((ANGO)) has held its Q3 earnings call. Read on for the main highlights of the call.
AngioDynamics’ recent earnings call painted a largely positive picture, with strong revenue growth and notable profitability improvements. The company expressed confidence in its future performance by increasing its guidance for fiscal 2025. While challenges persist, particularly with NanoKnife reimbursement and modest growth in the Med Device segment, the positive developments significantly overshadow these issues.
Strong Revenue Growth
AngioDynamics reported total worldwide revenue of $72 million, marking an impressive growth of over 9% year-over-year. The MedTech segment was a standout performer, growing by 22%, while the Auryon platform contributed with a 17% revenue increase.
Mechanical Thrombectomy Segment Success
The Mechanical Thrombectomy segment, featuring products like AlphaVac and AngioVac, experienced remarkable success, with combined growth of approximately 47% compared to the same quarter last year. Notably, AlphaVac revenue surged by over 160%.
Improving Profitability
AngioDynamics reported a positive adjusted EBITDA of $1.3 million, a significant turnaround from a $3.6 million loss in the previous year. Additionally, the adjusted EPS loss improved from $0.16 to $0.08 per share, highlighting the company’s improving financial health.
Guidance Increase
The company increased its guidance for fiscal 2025, projecting total revenue between $285 million and $288 million. MedTech growth is expected to be between 14% and 16%, with a gross margin range of 53% to 54%. This upward revision reflects AngioDynamics’ confidence in sustaining its growth trajectory.
NanoKnife Reimbursement Challenges
Despite growth in the NanoKnife segment, significant adoption and utilization are not anticipated until the CPT 1 code becomes effective on January 1 of next year. This delay poses a challenge to the segment’s immediate growth potential.
Minimal Growth in Med Device Segment
The Med Device segment showed minimal growth, with revenue at $40.7 million, representing a modest increase of approximately 1% over the previous year. This segment’s performance contrasts with the robust growth seen in other areas of the company.
Forward-Looking Guidance
AngioDynamics’ forward-looking guidance for fiscal 2025 is optimistic, with expectations of continued revenue growth and improved profitability. The company projects total revenue between $285 million and $288 million, driven by strong MedTech growth and improved gross margins.
In summary, AngioDynamics’ earnings call reflects a company on a positive trajectory, with strong revenue growth and profitability improvements. While challenges remain, particularly in the NanoKnife and Med Device segments, the company’s increased guidance for fiscal 2025 underscores its confidence in maintaining its growth momentum.