Angiodynamics, Inc. ((ANGO)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The recent earnings call for AngioDynamics, Inc. painted a generally positive picture, with strong revenue growth and operational efficiency improvements taking center stage. The MedTech segment, in particular, showed robust performance, although challenges such as tariffs and a decline in NanoKnife capital sales were acknowledged.
Strong Revenue Growth
AngioDynamics reported a total revenue of $80.2 million for the fourth quarter, marking an impressive growth of over 12% year-over-year. The MedTech segment was a standout performer with growth exceeding 20%, while the medical device segment grew by more than 6%.
Auryon Platform Success
The Auryon platform continued its streak of success, achieving its sixteenth consecutive quarter of double-digit increases. Revenue from Auryon reached $15.6 million, reflecting a 19.7% growth compared to the previous year.
Mechanical Thrombectomy Growth
The mechanical thrombectomy portfolio demonstrated significant growth, with a 45% year-over-year increase. Key contributors to this success were the AngioVac and AlphaVac products.
Operational Efficiency
The company reported positive adjusted EBITDA and generated over $15 million in free cash flow during the fourth quarter. AngioDynamics is targeting $15 million in annualized savings by fiscal 2027, highlighting its focus on operational efficiency.
NanoKnife and Regulatory Milestones
NanoKnife achieved significant clinical, reimbursement, and regulatory milestones, including a CPT Category I code for prostate and liver treatments, effective January 1, 2026.
Tariff Impact
Tariffs posed a challenge, with $1.6 million incurred during the fourth quarter, impacting gross margins and EBITDA. The company estimates a $4 to $6 million impact for fiscal 2026.
NanoKnife Capital Sales Decline
Despite the achievements, NanoKnife experienced a 2.5% decline in total revenue due to a 24.9% drop in capital sales in the fourth quarter.
Forward-Looking Guidance
For fiscal year 2026, AngioDynamics anticipates net sales between $305 million and $310 million, indicating a growth rate of 4% to 6% over the previous year. The MedTech segment is expected to grow by 12% to 15%, while the med device segment is projected to remain flat. The company forecasts gross margins between 53.5% and 55.5%, considering a potential $4 to $6 million tariff impact. Adjusted EBITDA is expected to range from $3 million to $8 million, with an adjusted loss per share projected between negative $0.35 and negative $0.25.
In summary, AngioDynamics’ earnings call reflected a positive sentiment overall, with strong revenue growth and strategic initiatives aimed at sustaining this momentum. Despite challenges such as tariffs and a decline in NanoKnife capital sales, the company remains optimistic about its future prospects, driven by its MedTech segment and operational efficiencies.