Core Insights - AngioDynamics (ANGO) is experiencing growth driven by its NanoKnife product and a focus on cancer treatment markets, supported by a strong fourth-quarter fiscal 2025 performance and ongoing studies [1][6][10] - The company's shares have seen a slight decline of 0.3% year-to-date, contrasting with a 7% decline in the industry and an 8.8% increase in the S&P 500 [1][2] Company Performance - AngioDynamics has a market capitalization of $358.8 million and projects a 50% growth over the next year, with earnings surpassing the Zacks Consensus Estimate in the last four quarters, averaging a surprise of 72.58% [2][3] - The fourth-quarter fiscal 2025 results showed a narrower adjusted loss per share and revenues exceeding expectations, indicating strong execution across both operating segments [11] Product and Market Dynamics - The NanoKnife product, which received FDA clearance and Breakthrough Device Designation, generated total revenues of $24.5 million in fiscal 2025, with fourth-quarter revenues of $7.2 million reflecting growth in disposable sales despite softer capital placements [3][4] - Recurring disposable sales grew by 9.6% for the year, providing a reliable revenue stream to offset variability in system placements [3] Clinical and Product Development - AngioDynamics is advancing a broad pipeline of clinical studies, including the AMBITION trial for Auryon and the RECOVER-AV trial for AlphaVac, aimed at enhancing its market position [7][8] - The NanoKnife's PRESERVE prostate trial has met primary endpoints, paving the way for reimbursement catalysts starting in 2026 [8] Financial Outlook - The company anticipates gross margins in the range of 53.5% to 55.5% for fiscal 2026, with adjusted EBITDA projected between $3.0 million and $8.0 million [13] - However, there has been a negative estimate revision trend for fiscal 2026, with the consensus estimate for loss per share expanding from 6 cents to 30 cents [14]

Core Insights - AngioDynamics Inc. reported a fourth-quarter 2025 adjusted loss of 3 cents per share, outperforming the consensus loss of 12 cents per share [1] - The company achieved sales of $80.2 million, reflecting a year-over-year increase of 12.7%, surpassing the consensus estimate of $74.26 million [1] - CEO Jim Clemmer stated that the company is "profitable" and its portfolio addresses approximately $10 billion in annual global market opportunities, up from $3 billion in 2021 [1] Financial Guidance - For fiscal year 2026, AngioDynamics expects net sales between $305 million and $310 million, slightly above the consensus of $304.9 million [2] - The company anticipates an adjusted loss between 35 and 25 cents per share, compared to the consensus loss of 23 cents per share [2] Tariff Impact and Financial Metrics - The company expects a $4 million to $6 million impact from tariffs for the full fiscal year 2026 [3] - The gross margin was reported at 52.7%, down 161 basis points from the fourth quarter of fiscal 2024; without the $1.6 million tariff impact, the gross margin would have been 54.7% [4] - Adjusted EBITDA for the quarter was $3.4 million, an increase from $1.5 million a year ago [4] Sales Performance - Med Tech net sales reached $35.8 million, a 22% increase from $29.3 million in the prior-year period, driven by Auryon sales of $15.6 million, which increased 19.7% [4] - Mechanical Thrombectomy revenue, including AngioVac and AlphaVac, was $11.3 million, marking a 44.7% increase [4] - Med Device net sales were $44.4 million, representing a 6.2% increase from $41.8 million in the prior-year period [4]

Core Insights - AngioDynamics reported a strong performance in Q4 FY2025, with total revenue of $80.2 million, reflecting a year-over-year increase of 12.7% driven by growth in both MedTech and med device segments [4][25][45] - The company emphasized the transformational impact of regulatory approvals and market expansion on future revenue potential, despite facing tariff-related headwinds [12][50][63] Financial Performance - Total revenue for FY2025 reached $292.7 million, up 8.1% from the previous year, with MedTech segment revenue growing 19.5% to $126.7 million [9][57] - Adjusted EBITDA for Q4 FY2025 was $3.4 million, an improvement from $1.5 million in Q4 FY2024, indicating margin improvement despite tariff impacts [8][54] - Gross margin for Q4 FY2025 was 52.7%, negatively impacted by tariffs, which reduced margins by 204 basis points [7][51] Segment Performance - MedTech revenue in Q4 FY2025 was $35.8 million, a 22% increase, while med device revenue was $44.4 million, up 6.2% [4][45] - The Auryon platform generated $15.6 million in revenue, growing 19.7% year-over-year, and has shown consistent double-digit growth since its launch [5][45][57] - Mechanical thrombectomy revenue, including AngioVac and AlphaVac, increased by 44.7% year-over-year, with AlphaVac revenue growing 60.8% [6][46][57] Guidance and Future Outlook - For FY2026, the company expects net sales between $305 million and $310 million, representing 4%-6% growth, with MedTech sales projected to increase by 12%-15% [10][60] - The company anticipates $15 million in annualized savings by FY2027 through manufacturing transitions, which will enhance operational efficiency [10][42] - Regulatory milestones, including a CPT Category I code for NanoKnife, are expected to drive growth and reimbursement access starting January 2026 [11][37][72] Strategic Initiatives - The company is focused on driving adoption and market share gains across its MedTech platforms while maintaining operational discipline [63][64] - Continued investments in clinical trials and evidence generation are planned to support product adoption and market penetration [11][29][38] - Management has indicated no plans for major acquisitions or divestitures in the near term, focusing instead on executing their current strategy [12][16]

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]

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]