ANGO Stock Down Despite Q4 Earnings Beat, Gross Margin Declines

Core Insights - AngioDynamics, Inc. (ANGO) reported an adjusted loss per share of 3 cents for the fourth quarter of fiscal 2025, which is an improvement from a loss of 6 cents in the same quarter last year and better than the Zacks Consensus Estimate of a loss of 13 cents [1][2][9] Financial Performance - The pro forma adjusted loss per share for the fourth quarter of fiscal 2025 was also 3 cents, compared to 5 cents in the year-ago quarter [2][3] - The GAAP loss per share was 15 cents, an improvement from 33 cents in the prior year [2][3] - Full-year fiscal 2025 adjusted loss per share was 15 cents, better than the 38 cents reported in fiscal 2024 and the Zacks Consensus Estimate of a loss of 29 cents [3] - Total revenues for the fourth quarter reached $80.2 million, reflecting a year-over-year increase of 12.9% and exceeding the Zacks Consensus Estimate by 7.5% [4][9] - Full-year fiscal 2025 revenues were $292.5 million, a decline of 3.8% from the previous year but still above the Zacks Consensus Estimate by 1.9% [5][6] Revenue Breakdown - U.S. net revenues for the fourth quarter were $67.5 million, up 11.1% year over year [7] - International revenues were $12.7 million, representing a 23.8% increase from the prior year [8] Segment Analysis - Med Tech revenues in the fourth quarter were $35.8 million, a 22% increase year over year [10][11] - Med Device revenues totaled $44.4 million, up 6.5% from the year-ago period [13] Margin and Expense Analysis - Pro forma gross profit increased by 9.4% to $42.2 million, but the gross margin contracted by 161 basis points to 52.7% [14] - Sales and marketing expenses rose by 7.6% to $26.4 million, while research and development expenses decreased by 1.9% to $6.6 million [15] Cash Position - AngioDynamics ended fiscal 2025 with cash and cash equivalents of $55.9 million, down from $76.1 million at the end of fiscal 2024 [17] - The company reported no debt on its balance sheet and a cumulative net cash used in operating activities of $10.1 million, compared to $28.2 million a year ago [17] Future Guidance - For fiscal 2026, AngioDynamics expects net sales to be between $305 million and $310 million, indicating growth of 4-6% from fiscal 2025 [18] - The company anticipates Med Tech revenue growth of 12-15%, while Med Device revenue growth is projected to be flat [18] - The adjusted loss per share is expected to range between 35 cents and 25 cents, with the Zacks Consensus Estimate at a loss of 24 cents per share [19] Market Developments - AngioDynamics received a CPT Category I Code for Irreversible Electroporation (IRE) for treating pancreatic lesions, effective January 1, 2027, which expands the reimbursement pathway for NanoKnife [22]