ANGO Stock Gains Following Q1 Earnings Beat, Gross Margin Improves

Core Insights - AngioDynamics, Inc. (ANGO) reported a pro-forma adjusted loss per share of 10 cents for the first quarter of fiscal 2026, an improvement from the adjusted loss of 11 cents in the same quarter last year, and better than the Zacks Consensus Estimate of a loss of 14 cents [1][7] - Pro-forma revenues for the fiscal first quarter reached $75.7 million, reflecting a year-over-year increase of 12.2% and surpassing the Zacks Consensus Estimate by 4.8% [3][7] - The company raised its fiscal 2026 sales outlook to a range of $308-$313 million, up from the previous guidance of $305-$310 million, driven by strong performance in the Med Tech segment [15][21] Revenue Performance - U.S. net revenues for the quarter totaled $66.5 million, up 11.7% year over year, exceeding the estimate of $62.3 million [6] - Pro-forma international revenues were $9.3 million, a 15.6% increase from the previous year, although below the projected $10.2 million [8] - The Med Tech segment's pro-forma net sales were $35.3 million, a 26.1% year-over-year increase, outperforming the estimate of $32.7 million [9][10] Segment Analysis - The growth in the Med Tech segment was primarily driven by increased sales of the Auryon platform, which generated $16.5 million (up 20.1% year over year), and Mechanical Thrombectomy revenues of $11.3 million (up 41.2% year over year) [10][19] - Pro-forma Med Device revenues totaled $40.5 million, reflecting a modest increase of 2.3% from the prior year, slightly above the estimate of $39.9 million [11] Margin and Expense Analysis - Pro forma gross profit rose 14% to $41.9 million, with the gross margin expanding by 90 basis points to 55.3%, surpassing the projected margin of 54.2% [12] - Sales and marketing expenses increased by 9.9% year over year to $28.1 million, while research and development expenses rose 2.1% to $6.4 million [13] Cash Position - AngioDynamics ended the first quarter of fiscal 2026 with cash and cash equivalents of $38.8 million, down from $55.9 million at the end of fiscal 2025, with no debt on its balance sheet [14] Future Outlook - The company expects Med Tech revenue growth to be in the range of 14-16%, up from the previous guidance of 12-15%, while Med Device revenue growth is projected to remain flat compared to fiscal 2025 [15] - Management anticipates a $4-$6 million impact from tariffs on overall performance, with adjusted loss per share projected between 33 cents and 23 cents [16]