Group 1: Stock Performance and Price Targets - AngioDynamics (ANGO) shares have increased by 5% over the past four weeks, closing at $6.69, with a mean price target of $13 indicating a potential upside of 94.3% [1] - The mean estimate includes three short-term price targets with a standard deviation of $1, where the lowest estimate of $12 suggests a 79.4% increase, and the highest estimate of $14 indicates a 109.3% surge [2] Group 2: Analyst Consensus and Earnings Estimates - Analysts show strong agreement in revising earnings estimates higher, which correlates with potential stock price increases, as indicated by a positive trend in earnings estimate revisions [4][9] - The Zacks Consensus Estimate for the current year has increased by 0.8% due to one upward revision over the last 30 days, with no negative revisions [10] Group 3: Analyst Behavior and Price Target Reliability - Analysts often set overly optimistic price targets due to business incentives, which can lead to inflated estimates [6] - A low standard deviation in price targets indicates a high degree of agreement among analysts regarding the stock's price movement direction, serving as a starting point for further research [7]

Core Viewpoint - AngioDynamics, Inc. (ANGO) has faced a significant decline in stock performance, dropping 13.8% over the past three months, contrasting with the industry's slight gain of 0.3% and the S&P 500's growth of 6.9% [1][4][6] Financial Performance - In the first quarter of fiscal 2025, AngioDynamics reported overall net sales growth, but Med Device net sales experienced a decline due to inflationary pressures on raw materials, labor shortages, and freight costs, negatively impacting gross profit [3][8] - The company anticipates fiscal 2025 revenues between $282 million and $288 million, reflecting a growth of 4.2% to 6.4% from fiscal 2024, although the Zacks Consensus Estimate indicates a 6.5% decline compared to the previous fiscal year [7][18] Recent Developments - AngioDynamics announced the grant of Category I CPT for Irreversible Electroporation (IRE), which is expected to enhance reimbursement for healthcare providers and improve patient access to the NanoKnife System [2] - The company launched the Auryon 1.7mm catheter and is executing a full commercial launch of AlphaVac for pulmonary embolism in the U.S. and CE-marked countries [10] - AngioDynamics received European CE mark approval for the Auryon Atherectomy System, allowing it to market the system for treating Peripheral Artery Disease in Europe [14] Market Position and Strategy - The company is focusing on expanding cancer treatment options and improving patient quality of life, with strong market acceptance of its NanoKnife system for tumor treatment [8][9] - AngioDynamics is investing in three key technologies: AngioVac, Auryon, and NanoKnife, while also working to enhance the profitability of its other products [9] - The majority of growth in the first quarter was driven by the U.S. market, with expectations for continued growth from AlphaVac in the near term [12] Stock Valuation - AngioDynamics' forward 12-month price-to-sales (P/S) ratio is 0.9X, significantly lower than the industry average of 4.5X and its five-year median of 1.5X, indicating potential for growth [15][19]

Core Insights - AngioDynamics, Inc. (ANGO) announced that its Irreversible Electroporation (IRE) technology has received Current Procedural Terminology (CPT) Category I codes for treating lesions in the prostate and liver, indicating clinical efficacy and value in the medical community [1][2] - Following the announcement, ANGO's stock price increased by nearly 11.2% to $7.27, although the stock has declined 7.3% year-to-date compared to an 8.4% rise in the industry and a 22.7% increase in the S&P 500 [2] - The recognition of IRE under CPT Category I codes is expected to enhance billing precision for healthcare providers, leading to broader insurance coverage and defined reimbursement rates for NanoKnife procedures [3] Company Developments - The NanoKnife System, which utilizes IRE technology to ablate targeted cells without thermal energy, has shown solid growth and previously received FDA clearance for surgical ablation of soft tissue [4] - The system was also granted Breakthrough Device Designation by the FDA, highlighting its innovative approach in the medical field [4] - ANGO's market capitalization currently stands at $265.8 million, and the company reported an earnings surprise of 26.7% in the last quarter [2] Industry Prospects - The global pancreatic cancer treatment market was valued at $2.86 billion in 2023 and is projected to exceed $10.69 billion by 2032, with a compound annual growth rate (CAGR) of 15.8% [5] - Factors driving market growth include unhealthy lifestyles, alcohol consumption, and obesity, which are primary causes of pancreatic cancer [5]

Core Viewpoint - AngioDynamics (ANGO) has experienced a significant downtrend, with a 15.9% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1][3]. Group 1: Stock Performance - ANGO's stock has declined 15.9% in the last four weeks, indicating strong selling pressure [1]. - The stock is currently in oversold territory, as indicated by an RSI reading of 24.7, suggesting that selling may be exhausting [3]. Group 2: Analyst Sentiment - There is strong consensus among sell-side analysts that ANGO will report better earnings than previously predicted, with a 0.8% increase in the consensus EPS estimate over the last 30 days [3]. - ANGO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [3].

Core Insights - AngioDynamics, Inc. reported an adjusted loss per share of 11 cents for Q1 fiscal 2025, an improvement from 12 cents in the same quarter last year and better than the Zacks Consensus Estimate of 15 cents [1] - The company's revenues for the fiscal first quarter totaled $67.5 million, down 14.2% year over year, missing the Zacks Consensus Estimate by 1.5% [3] - The company expects net sales for fiscal 2025 to be between $282 million and $288 million, indicating growth of 4.2-6.4% over the previous fiscal year [9] Financial Performance - Adjusted loss per share was 11 cents, compared to 12 cents in the prior year, and GAAP loss per share was 31 cents, wider than the previous year's EPS of $1.15 [1] - On a pro-forma basis, the GAAP loss per share was 32 cents, wider than 7 cents in the prior-year period [1] - Pro-forma gross profit rose 0.3% year over year to $36.7 million, but pro-forma gross margin contracted by 40 basis points to 54.4% [7] Revenue Breakdown - U.S. net revenues totaled $59.5 million, down 7.6% year over year, while international revenues were $8 million, down 43.9% [4] - Med Tech business net sales were $28 million, reflecting an 8.2% year-over-year increase, primarily driven by strong sales of the Auryon platform [5] - Med Device revenues grossed $39.5 million, down 25.2% from the year-ago period [5][6] Cash Position - AngioDynamics ended Q1 fiscal 2025 with cash and cash equivalents of $55 million, down from $76.1 million at the end of fiscal 2024, and had no debt on its balance sheet [8] Guidance and Outlook - The company reiterated its guidance for fiscal 2025, expecting adjusted loss per share between 38 cents and 42 cents, with a consensus estimate of a loss of 41 cents [9] - Med Tech revenue growth is projected at 10-12%, while Med Device revenue increase is expected to be 1-3% [9] Market Reaction - Following the earnings call, AngioDynamics' shares rose 3.3% in after-market trading [2]

Part I: Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Net sales decreased to $67.5 million, resulting in a $12.8 million net loss, driven by divestitures and a prior-year asset sale gain [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Net sales decreased 14.2% to $67.5 million, leading to a $13.1 million operating loss and a $12.8 million net loss, contrasting with prior-year's $47.8 million asset sale gain Consolidated Statements of Operations (unaudited) | Metric | Three Months Ended Aug 31, 2024 (in thousands) | Three Months Ended Aug 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net sales | $67,491 | $78,679 | | Gross profit | $36,724 | $40,060 | | Total operating expenses | $49,822 | $52,872 | | Gain on sale of assets | $0 | $47,842 | | Operating income (loss) | $(13,098) | $35,030 | | Net income (loss) | $(12,798) | $45,884 | | Diluted earnings (loss) per share | $(0.31) | $1.15 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Cash and cash equivalents decreased to $55.0 million, with total assets declining to $293.6 million and total liabilities to $97.0 million as of August 31, 2024 Key Balance Sheet Items (unaudited) | Metric | Aug 31, 2024 (in thousands) | May 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $55,005 | $76,056 | | Total current assets | $172,594 | $193,253 | | Total assets | $293,628 | $317,671 | | Total current liabilities | $76,699 | $91,155 | | Total liabilities | $97,046 | $112,085 | | Total Stockholders' Equity | $196,582 | $205,586 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $18.3 million, leading to a $21.1 million net decrease in cash and cash equivalents for the quarter Cash Flow Summary (unaudited) | Activity | Three Months Ended Aug 31, 2024 (in thousands) | Three Months Ended Aug 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(18,253) | $(25,899) | | Net cash (used in) provided by investing activities | $(2,405) | $98,442 | | Net cash used in financing activities | $(509) | $(59,590) | | **Increase (decrease) in cash** | **$(21,051)** | **$12,966** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail two major divestitures, revenue disaggregation, a Becton Dickinson legal settlement, a manufacturing restructuring plan, and a new share repurchase program - The company completed the sale of its Dialysis and BioSentry businesses to Merit Medical for **$100.0 million** in cash in Q1 FY2024, resulting in a pre-tax gain of **$47.8 million**[42](index=42&type=chunk) - The company completed the sale of its PICC and Midline businesses to Spectrum Vascular in Q3 FY2024 for **$34.5 million** in cash, plus potential earn-outs and milestone payments[39](index=39&type=chunk) - On January 5, 2024, the company announced a restructuring of its manufacturing footprint to an outsourced model, expected to be completed in Q3 FY2026 with total estimated costs of **$38.5 million to $53.5 million**. Restructuring charges of **$3.6 million** were recorded in the quarter[100](index=100&type=chunk)[101](index=101&type=chunk) - A settlement was reached with Becton, Dickinson and Company (BD) to resolve ongoing patent litigation, involving a one-time payment of **$7.0 million**, six minimum annual payments of **$2.5 million**, and potential additional payments[96](index=96&type=chunk) [Management's Discussion and Analysis (MD&A)](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Quarterly revenue decreased 14.2% to $67.5 million due to divestitures, despite Med Tech growth, resulting in a $12.8 million net loss and a $21.1 million decrease in cash [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Net sales decreased by $11.2 million due to Med Device divestitures, partially offset by Med Tech growth, while gross margin improved to 54.4% despite a fall in gross profit Net Sales by Segment (in thousands) | Segment | Q1 FY2025 (Aug 31, 2024) | Q1 FY2024 (Aug 31, 2023) | $ Change | | :--- | :--- | :--- | :--- | | Med Tech | $27,969 | $25,860 | $2,109 | | Med Device | $39,522 | $52,819 | $(13,297) | | **Total** | **$67,491** | **$78,679** | **$(11,188)** | Gross Profit by Segment (in thousands) | Segment | Q1 FY2025 (Aug 31, 2024) | Q1 FY2024 (Aug 31, 2023) | Gross Margin % (Q1 FY25 vs Q1 FY24) | | :--- | :--- | :--- | :--- | | Med Tech | $17,697 | $16,727 | 63.3% vs 64.7% | | Med Device | $19,027 | $23,333 | 48.1% vs 44.2% | | **Total** | **$36,724** | **$40,060** | **54.4% vs 50.9%** | - The decrease in Med Device sales was primarily driven by the divestiture of PICCs and Midline products (**$10.2 million** impact) and dialysis and BioSentry products (**$0.8 million** impact)[122](index=122&type=chunk) - Acquisition, restructuring and other items increased by **$1.1 million**, mainly due to a **$3.6 million** increase in plant closure expenses related to the manufacturing restructuring plan[133](index=133&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased to $55.0 million due to $18.3 million cash used in operations, with no outstanding debt, and sufficient liquidity for 12 months Cash and Debt Position (in millions) | Metric | Aug 31, 2024 | May 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $55.0 | $76.1 | | Outstanding Debt | $0.0 | $0.0 | - Cash used in operating activities was **$18.3 million**, an improvement from the **$25.9 million** used in the prior-year period[137](index=137&type=chunk)[138](index=138&type=chunk) - In the prior-year quarter (Q1 FY2024), investing activities provided **$98.4 million** cash from the divestiture of the dialysis and BioSentry businesses, while financing activities used **$59.6 million** for debt repayment and contingent consideration[137](index=137&type=chunk)[140](index=140&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces foreign currency exchange rate risk on 3.4% of sales and limited credit risk due to a diversified customer base - Approximately **3.4%** of sales in the quarter were denominated in foreign currencies, exposing the company to exchange rate fluctuations[145](index=145&type=chunk) - Credit risk is mitigated as no single customer represents more than **10%** of total sales[147](index=147&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of August 31, 2024, with no material changes in internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of the end of the period[149](index=149&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[150](index=150&type=chunk) Part II: Other Information [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 14 of the financial statements for detailed information on commitments and contingencies, including litigation updates - For details on legal proceedings, the report directs readers to Note 14, "Commitments and Contingencies," in the consolidated financial statements[153](index=153&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company highlights a potential risk related to future financing needs, having extinguished its Credit Agreement and requiring new external financing for growth or changing circumstances - The company repaid all amounts under its Credit Agreement in June 2023, which was then extinguished. This could pose a risk if additional financing is needed for future growth initiatives or acquisitions[155](index=155&type=chunk) [Issuer Purchases of Equity Securities](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 72,141 shares under a new **$15.0 million** program, with approximately **$14.4 million** remaining for future repurchases Share Repurchase Activity (Three Months Ended Aug 31, 2024) | Period | Total Shares Purchased as Part of Program (shares) | Average Price Paid per Share (USD) | Maximum Value Remaining for Repurchase (USD) | | :--- | :--- | :--- | :--- | | July 1 - July 31, 2024 | 72,141 | $6.68 | $14,448,871 | - A new share repurchase program authorizing up to **$15.0 million** was approved and announced on July 16, 2024[157](index=157&type=chunk) [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[159](index=159&type=chunk)

Core Viewpoint - AngioDynamics, Inc. (ANGO) is positioned for growth due to the potential of its NanoKnife System, despite facing pricing pressure and macroeconomic challenges [1] Company Overview - AngioDynamics designs, manufactures, and sells a variety of medical, surgical, and diagnostic devices, focusing on minimally invasive procedures, with a market capitalization of $310.85 million [1] - The company projects a 7.6% earnings growth for fiscal 2026 and has surpassed earnings estimates in three of the last four quarters, with an average beat of 28.61% [1] Factors Favoring ANGO Stock - **Broad Product Line**: AngioDynamics specializes in minimally invasive medical devices, with a product portfolio that includes Microwave Ablation, Radiofrequency Ablation (RFA), and the NanoKnife system, which is in high demand for tumor treatments [3] - **R&D Investments**: The company is increasing its R&D expenses at a projected CAGR of 1.3% from fiscal 2024 to 2027 to enhance core technologies [3] - **Regulatory Achievements**: Recent regulatory successes, including CE Mark approval and FDA clearance for the AlphaVac F18 System, support commercial launches [3] Potential in NanoKnife System - The NanoKnife product has received FDA clearance for soft tissue surgical ablation and is designated as a Breakthrough Device, contributing to an 11.3% year-over-year increase in Med Tech segment sales [4] - Capital sales surged by 247.8%, indicating strong demand for disposables, with expectations for FDA clearance for prostate ablation by the end of 2024 [4] - Revenue projections indicate a 5.9% CAGR from fiscal 2024 to 2027, driven by a 10.3% CAGR in the Med Tech segment [4] Strong Geographic Expansion - In fiscal 2024, 85.6% of net sales came from the U.S., up from 83.5% in 2023, with international sales growing by 14% [5] - U.S. revenues increased by 4.3% in the fourth quarter of 2024, with anticipated steady growth at a CAGR of 2.2% in the U.S. and 0.5% internationally through 2027 [5] Estimate Trend - The earnings estimate for 2024 has improved, with the Zacks Consensus Estimate for loss narrowing from 47 cents to 41 cents per share [7] - The third-quarter 2024 revenue estimate is $68.49 million, reflecting a 13% decline from the previous year [7]

Core Viewpoint - AngioDynamics experienced a significant decline in share price following its fiscal Q1 2025 update, which revealed mixed financial results and a net loss, despite maintaining its full-year guidance [1][2]. Financial Performance - AngioDynamics reported fiscal Q1 net sales of $67.5 million, reflecting a year-over-year increase of 1.1%, but falling short of analysts' expectations of $67.93 million [1]. - The company posted a net loss of $12.8 million, equating to $0.31 per share under GAAP, while the adjusted net loss was $4.4 million, or $0.11 per share, which was better than the consensus estimate of an adjusted loss of $0.15 per share [1]. Regulatory Developments - AngioDynamics submitted results from a pivotal study of the NanoKnife system to the FDA, aiming for 510(k) clearance for prostate tissue ablation in intermediate-risk patients [2]. - The company received European CE Mark approval for its Auryon Atherectomy System, which is used for treating peripheral artery disease, having previously been cleared by the FDA in 2020 [2]. Future Guidance - Despite the mixed fiscal Q1 results, AngioDynamics maintained its full-year guidance, expecting net sales between $282 million and $288 million, indicating year-over-year growth of 4.2% to 6.4% [2]. - The company projects an adjusted net loss per share between $0.38 and $0.42, an improvement compared to a pro forma adjusted loss per share of $0.45 in fiscal 2024 [2].

Financial Data and Key Metrics Changes - Total worldwide revenue for Q1 FY 2025 was $67.5 million, representing a year-over-year growth of just over 1% [8][20] - Adjusted EBITDA loss was $200,000, an improvement from a loss of $1.1 million in Q1 FY 2024 [9][25] - Adjusted net loss for Q1 FY 2025 was $4.4 million, or $0.11 per share, compared to a loss of $6.2 million or $0.16 per share in the prior year [24][25] Business Line Data and Key Metrics Changes - MedTech segment revenue was $28 million, an increase of 8.7% year-over-year, while Med Device revenue was $39.5 million, a 3.6% increase [20] - Auryon revenue grew 24.9% to $13.7 million, while AlphaVac revenue increased by over 21% [20][21] - NanoKnife revenue declined by 6.9% to approximately $5.1 million due to a tough year-over-year comparison [13][22] Market Data and Key Metrics Changes - The U.S. Med Device business increased by 2.1% year-over-year, while international business faced challenges due to timing of orders [16][20] - The MedTech segment now comprises 41.4% of total revenue, up from 38.5% a year ago [20] Company Strategy and Development Direction - The company is focused on increasing penetration in the hospital market for Auryon and expanding its geographic reach in Europe [28][29] - Continued investment in clinical data and product enhancements for AlphaVac is planned to drive adoption [30] - The transition to outsourced manufacturing is expected to generate approximately $15 million in annualized savings by FY 2027 [17][40] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities within the MedTech segment, with a total addressable market now estimated at $10 billion [28] - The company remains on track to achieve previously issued guidance for FY 2025, expecting revenue growth of 4.2% to 6.4% [26][27] Other Important Information - The company has zero debt and had $55 million in cash and cash equivalents as of August 31, 2024 [25] - A stock repurchase program was approved, allowing for purchases of up to $15 million of outstanding common shares [25][26] Q&A Session Summary Question: Can you provide further details on the AlphaVac PE launch ramp? - Management reported positive feedback from physicians regarding AlphaVac's design and efficiency, with ongoing measurement of new customer interactions [32][33] Question: What initiatives are being targeted for the Auryon hospital market? - The company is shifting focus to hospital customers, leveraging existing familiarity with Auryon from outpatient settings [36][38] Question: What are the expected savings from the manufacturing transition? - The transition is on track, with significant savings anticipated at the end of the program, expected to total $15 million [39][40] Question: What is the timeline for NanoKnife's CPT pathway? - The reimbursement process is complex, and while timelines are uncertain, the company is parallel-pathing the FDA and reimbursement processes [44][46] Question: What is the outlook for cash flow breakeven? - Management expects to reach cash flow positivity by the end of FY 2026, with Q1 being the highest cash utilization quarter [49][50]

Group 1: AngioDynamics, Inc. - AngioDynamics reported a first-quarter adjusted loss of 11 cents per share, better than market estimates of a loss of 15 cents per share [1] - The company's quarterly sales were $67.491 million, slightly below expectations of $67.933 million [1] - Following the earnings report, AngioDynamics shares fell 15.6% to $6.45 [1] Group 2: Other Notable Stock Movements - Youdao, Inc. shares decreased by 14.6% to $5.08 [2] - Ingevity Corporation shares declined 12.6% to $32.74 after the departure of CEO John Fortson [2] - Hims & Hers Health, Inc. fell 11.1% to $16.85, possibly influenced by Eli Lilly's announcement regarding a weight-loss drug shortage [2] - Levi Strauss & Co. reported worse-than-expected third-quarter sales and its FY24 adjusted EPS guidance, leading to a 9.1% decline in shares to $19.14 [2] - Joby Aviation, Inc. shares dipped 8.8% to $5.59 despite Toyota's announcement of a $500 million investment [2] - Bilibili Inc. shares fell 8.2% to $27.23 as US-listed Chinese stocks pulled back [2] - Wolfspeed, Inc. shares decreased by 7.5% to $8.45 after a downgrade from Mizuho [2] - GDS Holdings Limited shares fell 6.4% to $21.51 [2] - Weibo Corporation shares dipped 5% to $10.65, reflecting a broader decline in US-listed Chinese stocks [2] - Baidu, Inc. shares fell 4% to $110.49, also part of the sector's pullback [2]