Core Insights - A favorable product mix shift is a significant driver of earnings quality in MedTech companies, leading to margin expansion and cash flow durability [1][2] Group 1: Industry Dynamics - The medical device sector is experiencing a positive shift in product mix, with companies focusing on clinically differentiated platforms and premium technologies to achieve consistent earnings growth [2] - Improving hospital capital expenditures and normalizing procedural growth are contributing to this favorable environment [2] Group 2: Company-Specific Analysis AngioDynamics (ANGO) - AngioDynamics is strategically reshaping its portfolio by exiting lower-growth product lines and focusing on higher-growth MedTech segments, resulting in a 13% year-over-year revenue growth in MedTech for Q2 fiscal 2026 [6][7] - MedTech revenues now account for 45% of total revenues, up from 43% a year ago, with adjusted gross margin increasing by 170 basis points to 56.4% [7][10] - The company has seen significant growth in its Auryon platform, achieving 18 consecutive quarters of double-digit growth [8] Boston Scientific (BSX) - Boston Scientific is benefiting from a mix shift towards premium, innovation-led franchises, particularly in electrophysiology and structural heart, which are driving margin expansion [12][14] - In Q3 2025, adjusted gross margin improved to 71%, up 60 basis points year-over-year, attributed to strong growth in its electrophysiology and WATCHMAN franchises [13][16] - Electrophysiology sales grew by 63% year-over-year, while WATCHMAN saw a 35% increase, both contributing to the favorable product mix [14] Medtronic (MDT) - Medtronic's product mix is improving, with a 5.5% organic revenue growth in Q2 fiscal 2026, driven by strong performance in Cardiac Ablation, where pulsed-field ablation now represents 75% of revenues [19] - The company anticipates that pressures on gross margin from capital-heavy platforms will ease as consumables scale, leading to an improved mix over time [20][21] - Medtronic's gradual shift towards faster-growing segments supports its long-term EPS growth guidance, despite near-term margin fluctuations [21][22]

Core Viewpoint - AngioDynamics (ANGO) has experienced a significant decline of 25% over the past four weeks, but it is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [1]. Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - ANGO's current RSI reading is 22.62, suggesting that the heavy selling pressure may be exhausting, indicating a possible bounce back towards equilibrium in supply and demand [5]. Fundamental Analysis - There is a strong consensus among sell-side analysts that earnings estimates for ANGO have increased by 3.6% over the last 30 days, which typically correlates with price appreciation in the near term [7]. - ANGO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [8].

Core Insights - AngioDynamics, Inc. (ANGO) reported breakeven adjusted earnings per share for the second quarter of fiscal 2026, an improvement from a loss of 4 cents in the same quarter last year, surpassing the Zacks Consensus Estimate of a loss of 10 cents [1][2] - The company’s pro-forma revenues for the fiscal second quarter reached $79.4 million, reflecting an 8.8% year-over-year increase and exceeding the Zacks Consensus Estimate by 4.5% [3][10] - Despite the positive financial results, shares of AngioDynamics fell nearly 13.5% in the trading session following the announcement [4] Revenue Analysis - U.S. net revenues for the quarter totaled $67.6 million, up 7.8% year over year, surpassing the estimate of $62.3 million [5] - Pro-forma international revenues were $11.8 million, an 8.8% increase from the previous year, exceeding the projection of $10.2 million [5] Segment Performance - The Med Tech segment reported pro-forma net sales of $35.7 million, a 13% increase year over year, outperforming the estimate of $32.7 million [6] - Key drivers included Auryon sales of $16.3 million (up 18.6% year over year) and Mechanical Thrombectomy revenues of $11 million (up 3.9% year over year) [7] - Pro-forma Med Device revenues totaled $43.8 million, reflecting a 5.6% increase compared to the previous year, also exceeding the estimate of $39.9 million [8] Margin and Expense Analysis - AngioDynamics' pro forma gross profit rose 14% to $44.8 million, with gross margin expanding by 170 basis points to 56.4%, surpassing the projected margin of 54.2% [11][10] - Sales and marketing expenses increased by 4.4% year over year to $26.7 million, while R&D expenses rose by 20.7% to $7.8 million [12] Cash Position - The company ended the second quarter with cash and cash equivalents of $41.6 million, up from $38.8 million at the end of the previous quarter, with no debt on its balance sheet [13] Fiscal Year Guidance - AngioDynamics updated its fiscal 2026 sales guidance to a range of $312-$314 million, up from the previous guidance of $308-$313 million [14] - The company anticipates Med Tech revenue growth of 14-16% and flat to 1% growth for Med Device revenues [15] - Adjusted loss per share is projected to be between 33 cents and 23 cents, with the Zacks Consensus Estimate at a loss of 28 cents per share [16] Overall Assessment - AngioDynamics demonstrated strong execution in the second quarter, with revenue growth driven by the higher-margin Med Tech portfolio, which now accounts for 45% of total revenue [17] - Auryon continues to be a significant growth driver, achieving its 18th consecutive quarter of double-digit growth [18] - The Mechanical Thrombectomy segment showed mid-single-digit growth, with regulatory advancements expected to enhance adoption and clinical use [19]

Core Insights - AngioDynamics reported a Q2 2026 EPS of -$0.15, missing the estimated -$0.10, but exceeded revenue expectations with $79.43 million compared to the estimated $76.7 million [1][6] - The company experienced double-digit growth in its medical technology segment, contributing to increased profitability despite a negative P/E ratio of approximately -14.67 [2][6] - AngioDynamics raised its fiscal year 2026 adjusted EPS guidance, indicating a positive outlook for future performance, although shares declined by 1.8% to close at $12.87 [4][6] Financial Performance - Analysts had forecasted a quarterly loss of 10 cents per share, which is deeper than the 4 cents per share loss from the same quarter last year [3] - Revenue of $79.43 million surpassed the previous year's $72.84 million, indicating a positive trend in sales [3] - The company's price-to-sales ratio of about 1.56 suggests that investors are paying $1.56 for every dollar of sales, reflecting confidence in its revenue-generating capabilities [3] Analyst Sentiment - Canaccord Genuity analyst William Plovanic maintained a Buy rating and increased the price target from $17 to $18, indicating positive sentiment from analysts regarding the company's potential [4] - Despite financial challenges, the company maintains a strong current ratio of about 2.29, suggesting solid ability to cover short-term liabilities with short-term assets [5]

Financial Performance - Net sales for the three months ended November 30, 2025, increased by $6.6 million to $79.4 million, compared to $72.8 million in the same period of the prior year, representing an increase of 9.0%[111] - The Company reported a net loss of $6.4 million for the three months ended November 30, 2025, a decrease of $4.4 million compared to a net loss of $10.7 million in the same quarter of the prior year[109] - For the six months ended November 30, 2025, net sales increased by $14.8 million to $155.1 million, compared to $140.3 million in the same period of the prior year, representing an increase of 10.6%[111] - The company reported a net loss of $17.3 million and $23.5 million for the six months ended November 30, 2025 and 2024, respectively[131] Revenue Growth - Med Tech revenue grew by 13.0% in the second quarter of fiscal year 2026, driven by Auryon, NanoKnife, and thrombus management products[108] - The Company’s Med Device revenue grew by 6.0% in the second quarter of fiscal year 2026, driven by growth in Core, Ports, and Venous product lines[108] - Increased sales of Auryon contributed $2.6 million and $5.3 million for the three and six months ended November 30, 2025, respectively[114] Margins - Gross margin increased by 160 basis points to 56.4% for the three months ended November 30, 2025, compared to 54.8% in the same period of the prior year[111] - Med Tech gross margin increased to 65.3% for the three months ended November 30, 2025, up from 63.7% in the same period of the prior year[115] - The Med Device segment gross margin increased by $1.7 million and $2.6 million for the three and six months ended November 30, 2025, compared to the same period in the prior year[117] Expenses - Research and development (R&D) expense increased by $1.3 million and $1.5 million for the three and six months ended November 30, 2025, respectively[120] - Selling and marketing (S&M) expense rose by $1.1 million and $3.6 million for the three and six months ended November 30, 2025, respectively[121] - General and administrative (G&A) expense decreased by $0.2 million for the three months but increased by $1.3 million for the six months ended November 30, 2025[122] Cash and Debt Position - Cash and cash equivalents totaled $41.6 million as of November 30, 2025, down from $55.9 million as of May 31, 2025[128] - Cash used in operating activities was $11.3 million and $15.8 million for the six months ended November 30, 2025 and 2024, respectively[131] - As of November 30, 2025, the Company had no outstanding debt, indicating a strong financial position[137] - The Company has a $25.0 million secured revolving credit facility with interest rates based on SOFR plus 0.1% or an alternate base rate, with no amounts outstanding as of November 30, 2025[138] Risk Management - Approximately 4.6% of the company's sales for the six months ended November 30, 2025, were denominated in foreign currencies, exposing profitability to currency fluctuations[136] - The Company mitigates credit risk by maintaining cash and cash equivalents at various institutions and regularly evaluating their credit standings[139] - No single customer accounts for more than 10% of total sales, reducing concentration of credit risk in trade accounts receivable[140] - The standard payment terms for customers are 30 to 90 days from invoicing, minimizing significant financing provided to customers[140] - The Company does not foresee significant credit risk associated with outstanding accounts receivable, relying on the financial stability of its customers[140] Future Outlook - The Company expects to grow by expanding geographically, penetrating new markets, and introducing new products[106] - The backlog at November 30, 2025, was $0.4 million, primarily impacting sales of Core products[112] - Acquisition, restructuring, and other items, net, decreased by $2.2 million and $3.8 million for the three and six months ended November 30, 2025, respectively[125] - The effective tax rate for the three months ended November 30, 2025, was 0.1%, compared to 1.0% for the same period in the prior year[127]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Financial Data and Key Metrics Changes - Revenue increased by 8.8% to $79.4 million, with Med Tech up 13% and Med Device up 5.6% [5][13] - Adjusted EBITDA nearly doubled year over year, reaching $5.9 million compared to $3.1 million in the previous year [5][22] - Gross margin improved to 56.4%, a 170 basis point increase from the previous year [20][19] Business Line Data and Key Metrics Changes - Med Tech revenue was $35.7 million, a 13% increase, contributing 45% of total revenue compared to 43% a year ago [14] - Auryon platform revenue grew 18.6% to $16.3 million, marking 18 consecutive quarters of double-digit growth [14][15] - Mechanical thrombectomy revenue increased by 3.9% to $11 million, with AlphaVac growing 40.2% to $3.5 million, while AngioVac revenue decreased by 7.5% to $7.5 million [15][16] Market Data and Key Metrics Changes - International sales for Auryon are beginning to contribute following CE Mark approval, with expectations for growth in the atherectomy market [6][58] - NanoKnife revenue increased by 22.2% to $7.3 million, driven by prostate procedures and a strong quarter for capital sales [17][10] Company Strategy and Development Direction - The company is focused on expanding its Med Tech segment, which addresses a $10 billion global market, and aims to increase penetration in hospitals [28] - Regulatory milestones for mechanical thrombectomy products are expected to enhance competitive positioning and expand clinical applications [8][9] - The company is committed to investing in R&D initiatives to support long-term growth, targeting approximately 10% of sales for R&D [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to balance revenue growth with profitability, raising full-year guidance for revenue and adjusted EBITDA [5][24] - The company anticipates continued growth in the Med Tech segment and is optimistic about the long-term opportunities in mechanical thrombectomy and NanoKnife [10][42] Other Important Information - The company announced a leadership transition, with the current CEO planning to retire after a decade, and a search for a new CEO is underway [27][29] - A recent court ruling affirmed the invalidation of a competitor's patents, eliminating a potential $3 million payment [26] Q&A Session Summary Question: Comments on gross margin expectations - Management noted strong gross margin performance driven by positive pricing and a shift towards Med Tech sales, but structural underabsorption is expected in the second half due to manufacturing transitions [34][35] Question: Insights on mechanical thrombectomy performance - Management expressed satisfaction with AlphaVac's growth and acknowledged AngioVac's tough year-over-year comparison, but remains optimistic about its long-term potential [38][40] Question: Update on prostate procedures and CPT code changes - Management is monitoring the impact of the new CPT code on insurance coverage and expects it to be a catalyst for growth, particularly in the Medicare segment [48][50] Question: Adjusted EBITDA expectations for the third quarter - Management does not expect negative EBITDA in the third quarter but anticipates it will be lower than the first half due to planned investments [52][54] Question: Expectations for international sales and Auryon expansion - Management is optimistic about international sales growth following CE Mark approval and is focused on increasing awareness and adoption of Auryon [58][60]

Financial Data and Key Metrics Changes - Revenue increased by 8.8% to $79.4 million, with Med Tech up 13% and Med Device up 5.6% [5][14] - Adjusted EBITDA nearly doubled year-over-year, reaching $5.9 million compared to $3.1 million in the previous year [22] - Gross margin improved to 56.4%, a 170 basis point increase from the previous year [18][19] - Adjusted net loss reduced to $0.1 million, or an adjusted loss per share of $0.001, compared to an adjusted net loss of $1.7 million, or an adjusted loss per share of $0.04 in the prior year [22] Business Line Data and Key Metrics Changes - Med Tech revenue was $35.7 million, a 13% increase, contributing 45% of total revenue compared to 43% a year ago [14] - Auryon platform revenue grew 18.6% to $16.3 million, marking 18 consecutive quarters of double-digit growth [14][15] - Mechanical thrombectomy revenue increased by 3.9% to $11 million, with AlphaVac revenue up 40.2% to $3.5 million, while AngioVac revenue decreased by 7.5% to $7.5 million [15][16] - NanoKnife revenue rose 22.2% to $7.3 million, driven by increased demand for prostate cancer procedures [17] Market Data and Key Metrics Changes - International sales for Auryon are expected to grow following CE mark approval, with ongoing efforts to increase market penetration [6][58] - The company is targeting expansion into coronary applications, although significant R&D spending is not anticipated in the current fiscal year [59] Company Strategy and Development Direction - The company is focused on increasing the percentage of revenue from higher growth, higher margin Med Tech segments [14] - Strategic initiatives include expanding the addressable market for Auryon and enhancing the mechanical thrombectomy portfolio through regulatory approvals [6][8] - The company aims to balance current operational efficiency with investments for long-term growth [11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate cash flow and maintain profitability while investing in growth initiatives [11][23] - The company raised its full-year guidance for revenue and adjusted EBITDA based on strong second-quarter performance [24][25] - Management highlighted the importance of regulatory milestones in enhancing competitive positioning and expanding clinical applications [8][9] Other Important Information - The company announced a leadership transition, with the current CEO planning to retire after a decade, and a search for a new CEO is underway [28][29] - A favorable court ruling regarding patent litigation with C.R. Bard eliminates a potential $3 million payment, concluding a long-standing legal matter [26] Q&A Session Summary Question: Comments on gross margin expectations - Management noted strong gross margin performance driven by positive pricing and a favorable product mix, but anticipated structural underabsorption in the second half due to manufacturing transitions [34][36] Question: Insights on mechanical thrombectomy performance - Management expressed optimism about AlphaVac's growth and acknowledged AngioVac's challenging year-over-year comparison, but remained confident in its long-term potential [39][40] Question: Update on prostate procedures and CPT code changes - Management indicated that it is too early to assess the impact of the new CPT code on insurer responses but sees it as a potential catalyst for growth [49] Question: Adjusted EBITDA expectations for the third quarter - Management expects positive adjusted EBITDA in the third quarter, though it may not be as robust as the first half due to planned investments [53]

Financial Data and Key Metrics Changes - Revenue increased by 8.8% to $79.4 million, with Med Tech up 13% and Med Device up 5.6% [12][5] - Adjusted EBITDA nearly doubled year-over-year to $5.9 million from $3.1 million [21] - Gross margin improved to 56.4%, a 170 basis point increase from the previous year [18] - Adjusted net loss reduced to $0.1 million, or an adjusted loss per share of $0.001, compared to a loss of $1.7 million or $0.04 per share last year [21] Business Line Data and Key Metrics Changes - Med Tech revenue was $35.7 million, a 13% increase, contributing 45% of total revenue [12][13] - Auryon platform revenue grew 18.6% to $16.3 million, marking 18 consecutive quarters of double-digit growth [13][14] - Mechanical thrombectomy revenue increased by 3.9% to $11 million, with AlphaVac growing 40.2% to $3.5 million, while AngioVac revenue decreased by 7.5% to $7.5 million [14][15] - NanoKnife revenue rose 22.2% to $7.3 million, driven by prostate procedures [16] Market Data and Key Metrics Changes - International sales for Auryon are beginning to contribute following CE Mark approval, with expectations for growth in the atherectomy market [6][44] - The company is targeting expansion into coronary applications, although significant R&D spending is not expected this year [46] Company Strategy and Development Direction - The company is focused on increasing penetration in hospitals and expanding its addressable market through various studies and regulatory approvals [6][8] - The leadership transition is underway, with the current CEO announcing retirement plans, which may impact strategic direction [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to balance revenue growth with profitability, raising full-year guidance for revenue and adjusted EBITDA [5][23] - The company anticipates continued growth in Med Tech and a slight increase in Med Device sales, with gross margin expected to remain stable [24][23] Other Important Information - The company received favorable court rulings regarding patent litigation, eliminating potential financial liabilities [25] - The transition to a distribution model in France is expected to enhance international sales and market presence [16] Q&A Session Summary Question: Comments on gross margin expectations - Management noted strong gross margin performance driven by positive pricing and product mix, but structural underabsorption is expected in the second half due to manufacturing transitions [31][33] Question: Insights on mechanical thrombectomy performance - Management highlighted strong growth in AlphaVac and expressed confidence in AngioVac's future growth despite a tough year-over-year comparison [34][35] Question: Update on prostate procedures and CPT code changes - Management is optimistic about the impact of the new CPT code on adoption rates, particularly in the Medicare market, and noted strong capital sales related to this [40][41] Question: Adjusted EBITDA expectations for the third quarter - Management expects positive EBITDA in the third quarter but not as robust as the first half due to planned investments [42] Question: International sales expectations for Auryon - Management is pleased with the uptake of Auryon internationally and anticipates gradual growth in sales as awareness increases [44]