AngioDynamics Stock Up on Q2 Earnings Beat, Gross Margin Declines

Core Viewpoint - AngioDynamics, Inc. reported a narrower adjusted loss per share for the second quarter of fiscal 2025, indicating improved financial performance compared to the previous year and exceeding consensus estimates [1][2][20]. Financial Performance - Adjusted loss per share for Q2 fiscal 2025 was 4 cents, compared to 5 cents in the same quarter last year and better than the Zacks Consensus Estimate of 11 cents [1][2]. - GAAP loss per share was 26 cents, an improvement from 72 cents in the prior-year period [2][3]. - Total revenues for the quarter were $72.8 million, down 7.9% year over year but exceeding the Zacks Consensus Estimate by 2.4% [4][20]. Revenue Breakdown - U.S. net revenues were$ 62.7 million, a decrease of 2.1% year over year, but up 12.3% on a pro forma basis [6]. - International revenues fell to $10.2 million, down 32.5% year over year on a reported basis [7]. - Med Tech segment revenues increased to$ 31.6 million, reflecting a 24.4% year-over-year growth [8][9]. - Med Device segment revenues were $41.3 million, down 23.1% from the previous year [11]. Margin and Expense Analysis - Pro forma gross profit rose 8.9% to$ 39.9 million, with a slight contraction in gross margin to 54.7% [13]. - Sales and marketing expenses increased by 6.6% to $25.6 million, while R&D expenses decreased by 22.8% to$ 6.4 million [14]. Cash Position - The company ended the quarter with cash and cash equivalents of $54.1 million, down from$ 55 million at the end of the previous quarter, and had no debt [16]. Guidance for Fiscal 2025 - AngioDynamics revised its fiscal 2025 guidance, expecting net sales between $282 million and$ 288 million, representing a growth of 4.2-6.4% from the previous year [17]. - Med Tech revenue growth is now projected at 12-15%, an increase from the earlier estimate of 10-12% [17]. - Adjusted loss per share is expected to be between 34 cents and 38 cents, narrower than the previous projection [18].