Core Insights - The Medical Instruments industry is experiencing significant advancements due to artificial intelligence (AI) and predictive analytics, which are driving innovation in diagnostics, patient monitoring, and personalized treatment [2][4] - The global AI in healthcare market is projected to grow at a CAGR of 38.5% from 2024 to 2030, despite facing challenges such as geopolitical tensions and supply chain issues [4][8] - The industry is currently underperforming compared to the S&P 500 but has shown resilience against sector declines [17] Industry Overview - The Zacks Medical - Instruments industry is highly fragmented, involving extensive research and development across various therapeutic areas, regulated by the FDA [5] - Recent trends include the integration of AI in diagnostics, the rise of telemedicine, robotic-assisted surgeries, and advancements in 3D printing and gene editing [6][9] - The ongoing merger and acquisition trend is notable, with 305 M&A transactions in 2024 totaling over $63.1 billion, indicating a competitive landscape [10][11] Company Highlights Integer Holdings - Integer Holdings focuses on portfolio optimization and has divested its Non-Medical business to support long-term growth [20] - The consensus estimate for 2025 sales is $1.87 billion, reflecting a 7.7% increase from 2024, with EPS expected to rise by 19.4% to $6.33 [21] AngioDynamics - AngioDynamics is focusing on cancer treatment markets and has a strong product pipeline, with sales for fiscal 2026 estimated at $305 million, a 6.3% increase from fiscal 2025 [22][23] Penumbra - Penumbra is experiencing consistent revenue growth driven by strong patient outcomes and growth in its vascular and neuro businesses [24] - The consensus estimate for Penumbra's 2025 sales is $1.35 billion, indicating a 13.4% rise from 2024, with EPS expected to improve by 67.6% to $3.72 [25]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: AngioDynamics (ANGO) - AngioDynamics currently holds a Momentum Style Score of B, indicating potential for strong performance based on price changes and earnings estimate revisions [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [4] Performance Metrics - Over the past week, ANGO shares increased by 7.94%, significantly outperforming the Zacks Medical - Instruments industry, which rose by only 0.37% [6] - In a longer timeframe, ANGO's shares have risen by 20.07% over the past quarter and 71.09% over the last year, while the S&P 500 only increased by 2.37% and 14.4%, respectively [7] Trading Volume - The average 20-day trading volume for ANGO is 535,625 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for ANGO have been revised upwards, leading to an increase in the consensus estimate from -$0.36 to -$0.29 [10] - For the next fiscal year, two estimates have also moved upwards with no downward revisions, indicating positive sentiment [10] Conclusion - Given the strong performance metrics and positive earnings outlook, ANGO is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling investment opportunity [12]

Group 1 - AngioDynamics (ANGO) has shown strong year-to-date performance, returning 9.2% compared to the Medical sector's average return of -5.6% [4] - The Zacks Consensus Estimate for AngioDynamics' full-year earnings has increased by 22.5% over the past 90 days, indicating improved analyst sentiment [4] - AngioDynamics holds a Zacks Rank of 1 (Strong Buy), suggesting it has characteristics to outperform the market in the near term [3] Group 2 - AngioDynamics is part of the Medical - Instruments industry, which consists of 85 companies and currently ranks 90 in the Zacks Industry Rank [6] - The Medical - Instruments industry has an average year-to-date loss of 8.9%, highlighting AngioDynamics' relative outperformance [6] - Chugai Pharmaceutical Co., Ltd. Unsponsored ADR has also outperformed its sector with an 18.8% return this year and a Zacks Rank of 2 (Buy) [5][7]

Company Performance - Idexx Laboratories (IDXX) has returned approximately 23.2% since the beginning of the calendar year, significantly outperforming the Medical sector, which has an average return of -6.7% year-to-date [4] - The Zacks Consensus Estimate for IDXX's full-year earnings has increased by 1.9% over the past quarter, indicating improving analyst sentiment and a positive earnings outlook [3] Industry Context - Idexx Laboratories is part of the Medical - Instruments industry, which consists of 85 individual companies and currently ranks 78 in the Zacks Industry Rank. This industry has experienced a loss of about 6.9% so far this year, highlighting IDXX's superior performance within this group [6] - Another stock in the Medical sector, AngioDynamics (ANGO), has also outperformed the sector with a year-to-date return of 2.6% and a consensus EPS estimate increase of 22.5% over the past three months, earning a Zacks Rank of 1 (Strong Buy) [4][5] Sector Ranking - The Medical sector, which includes 1001 individual stocks, ranks 4 in the Zacks Sector Rank, indicating a relatively strong position compared to other sectors [2] - Idexx Laboratories currently holds a Zacks Rank of 2 (Buy), suggesting it is well-positioned for potential growth in the near term [3] Investment Outlook - Investors interested in Medical stocks should continue to monitor Idexx Laboratories and AngioDynamics, as both companies are expected to maintain their solid performance [7]

Core Viewpoint - AngioDynamics (ANGO) shares have seen a 1.1% increase over the past four weeks, closing at $9.60, with analysts suggesting a potential upside of 63.2% based on a mean price target of $15.67 [1] Price Targets - The average price target consists of three estimates ranging from a low of $15 to a high of $16, with a standard deviation of $0.58, indicating a strong consensus among analysts [2] - The lowest estimate suggests a 56.3% increase, while the highest indicates a 66.7% upside [2] Analyst Sentiment - Analysts show strong agreement regarding ANGO's ability to report better earnings than previously predicted, which supports the potential for stock upside [4] - A positive trend in earnings estimate revisions has been correlated with stock price movements, suggesting that this could be a reliable indicator of future performance [11] Earnings Estimates - Over the last 30 days, three earnings estimates for ANGO have been revised upward, with no negative revisions, leading to a 22.5% increase in the Zacks Consensus Estimate [12] - ANGO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [13]

Group 1 - AngioDynamics (ANGO) is currently outperforming its peers in the Medical sector, with a year-to-date return of approximately 0.9%, while the average return for the Medical group is a loss of about 7.8% [4] - The Zacks Rank for AngioDynamics is 1 (Strong Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 26% in the past quarter [3] - AngioDynamics belongs to the Medical - Instruments industry, which has an average loss of 14% year-to-date, further highlighting its strong performance relative to its industry peers [5] Group 2 - ANIXA BIOSCIENCES INC (ANIX) is another Medical stock that has outperformed the sector, with a year-to-date increase of 14.7% [4] - The consensus estimate for ANIX's current year EPS has risen by 10.9% over the past three months, and it holds a Zacks Rank of 2 (Buy) [5] - The Medical - Biomedical and Genetics industry, to which ANIX belongs, has experienced a decline of 11.4% this year, indicating that ANIX is also performing well within its industry [6]

Group 1 - The core viewpoint is that AngioDynamics (ANGO) has significant upside potential, with a mean price target of $15.33 indicating a 68.3% increase from its current price of $9.11 [1] - Analysts have set short-term price targets ranging from $15 to $16, with the lowest estimate suggesting a 64.7% increase and the highest indicating a 75.6% upside, alongside a standard deviation of $0.58, reflecting a consensus among analysts [2] - There is a strong agreement among analysts regarding improved earnings estimates for ANGO, which historically correlates with positive stock price movements [4][10] Group 2 - The Zacks Consensus Estimate for ANGO's current year earnings has increased by 10.8% over the last 30 days, with no negative revisions, indicating positive sentiment [11] - ANGO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, suggesting strong potential for near-term upside [12]

Core Viewpoint - AngioDynamics, Inc. reported better-than-expected results for the third quarter of fiscal 2025, with adjusted earnings per share (EPS) of 3 cents, compared to a loss of 16 cents in the same quarter last year and a consensus estimate of a loss of 13 cents [1][18]. Financial Performance - Adjusted loss per share on a pro-forma basis was 8 cents, improved from 16 cents year-over-year [2]. - GAAP loss per share was 11 cents, significantly better than the loss of $4.67 reported in the prior year [2][3]. - Total revenues for the fiscal third quarter were $72 million, down 4.2% year-over-year but exceeding the Zacks Consensus Estimate by 2% [4]. - On a pro forma basis, net sales were $72 million, reflecting a 9.2% increase year-over-year [4]. Revenue Breakdown - U.S. net revenues were $61.3 million, down 1.6% year-over-year, but up 9.9% on a pro forma basis [6]. - International revenues totaled $10.7 million, down 16.9% year-over-year on a reported basis, but up 5.1% on a pro forma basis [7]. Segment Analysis - Med Tech revenues were $31.3 million, up 21.3% year-over-year, surpassing projections [8][9]. - Med Device revenues were $40.7 million, down 17.6% from the previous year, but up 0.9% on a pro forma basis [11]. Margin and Expense Analysis - Pro forma gross profit increased by 15.4% year-over-year to $38.9 million, with gross margin expanding by 290 basis points to 54% [12]. - Sales and marketing expenses rose by 7.9% to $25.5 million, while R&D expenses decreased by 14.4% to $6.9 million [13]. Cash Position - The company ended the quarter with cash and cash equivalents of $44.8 million, down from $54.1 million in the previous quarter, and had no debt [15]. Guidance - AngioDynamics revised its fiscal 2025 guidance, expecting net sales between $285 million and $288 million, indicating growth of 5.3-6.4% from the previous year [16]. - Adjusted loss per share is now projected to be between 31 cents and 34 cents, an improvement from earlier estimates [17].

Revenue and Sales Performance - Revenue decreased by 4.2% to $72.0 million for the three months ended February 28, 2025, and by 8.8% to $212.3 million for the nine months ended February 28, 2025[120]. - Med Tech segment grew by 21.3% in the third quarter, while Med Device segment declined by 17.6%[120]. - Med Tech segment net sales increased by $5.5 million and $13.8 million for the three and nine months ended February 28, 2025, respectively[125]. - The company had a sales order backlog of $0.5 million as of February 28, 2025[124]. Profitability and Loss - Gross profit increased by 630 basis points to 54.0% for the three months ended February 28, 2025[120]. - Net loss decreased by $183.3 million to $4.4 million for the three months ended February 28, 2025[120]. - Total company gross profit increased by $3.0 million for the three months ended February 28, 2025, but decreased by $0.7 million for the nine months ended February 28, 2025 compared to the same periods in 2024[129]. - Med Tech segment gross profit increased by $3.7 million and $9.0 million for the three and nine months ended February 28, 2025, respectively[131]. - Med Device segment gross profit decreased by $0.7 million and $9.7 million for the three and nine months ended February 28, 2025, respectively[131]. - The company recorded a net loss of $27.9 million for the nine months ended February 28, 2025, compared to a loss of $170.9 million for the same period in the previous year[148]. Expenses and Cost Management - Research and development expenses decreased by $1.3 million and $5.2 million for the three and nine months ended February 28, 2025, respectively[134]. - Selling and marketing expenses increased by $0.1 million for the three months ended February 28, 2025 but decreased by $1.5 million for the nine months ended February 28, 2025[137]. - General and administrative expenses decreased by $0.1 million for the three months ended February 28, 2025 but increased by $1.1 million for the nine months ended February 28, 2025[138]. - Legal expenses decreased by $23.3 million and $30.0 million, primarily due to a $19.3 million settlement with BD in the prior year[144]. Cash Flow and Financial Position - Cash used in operations decreased by $4.2 million to $28.9 million for the nine months ended February 28, 2025[125]. - Cash used in operating activities was $(28,939) thousand for the nine months ended February 28, 2025, compared to $(33,159) thousand for the nine months ended February 29, 2024[145]. - Cash provided by financing activities was $5,515 thousand for the nine months ended February 28, 2025, compared to $(59,248) thousand for the same period in the previous year[145]. - Cash and cash equivalents totaled $44.8 million as of February 28, 2025, down from $76.1 million as of May 31, 2024[143]. - The company did not have any outstanding debt as of February 28, 2025 and May 31, 2024[143]. - The company has a cash balance sufficient to meet anticipated capital needs for at least the next 12 months[147]. Strategic Initiatives - The restructuring plan is expected to generate $15.0 million in annual cost savings starting in fiscal year 2027[116]. - The company repurchased 72,141 shares for $0.5 million and 171,706 shares for $1.1 million in the first and second quarters of fiscal year 2025, respectively[117]. - The company entered into agreements to sell manufacturing facilities for a total purchase price of $6.7 million[118]. - The company achieved a sales milestone related to divested products, recording a receivable of $5.5 million expected to be paid in the fourth quarter of fiscal year 2025[144]. - The company received $100.0 million from the divestiture of the dialysis and BioSentry businesses in the first quarter of fiscal year 2024[148]. Foreign Currency and Taxation - Approximately 3.5% of the company's sales were denominated in foreign currencies for the nine months ended February 28, 2025[151]. - The effective tax rate for the three months ended February 28, 2025 was 0.0%, compared to 6.0% for the same period in 2024[141]. - Unrealized foreign currency fluctuations increased by $0.1 million and $0.3 million for the three and nine months ended February 28, 2025, respectively[144]. Working Capital - Working capital was negatively impacted by a decrease in accounts payable and accrued liabilities of $18.5 million for the period ended February 28, 2025[148].

Financial Performance - AngioDynamics reported pro forma adjusted EBITDA of $1.3 million, improving from a loss of $3.6 million in Q3 FY24[6] - The company achieved 9% year-over-year pro forma total revenue growth[8] - MedTech segment pro forma revenue grew by 22% year-over-year[8] - For Q3 2025, MedTech net sales were $31.341 million, compared to $25.844 million in Q3 2024[38] - For YTD 2025, MedTech net sales were $90.863 million, compared to $77.068 million in YTD 2024[40] - AngioDynamics increased full-year 2025 guidance for revenue, MedTech growth, gross margin, adjusted EBITDA, and adjusted EPS[7] Product Performance - Auryon sales reached $13.9 million, representing a 17% year-over-year growth[8] - AngioVac sales were $6.8 million, with a 23% year-over-year increase[8] - AlphaVac sales amounted to $3.0 million, demonstrating a 161% year-over-year growth[8] - NanoKnife probe sales totaled $4.9 million, showing a 16% year-over-year growth[8] Strategic & Regulatory Milestones - AngioDynamics received FDA clearance for NanoKnife for prostate tissue ablation[5]