AngioDynamics falls short of Street's fiscal 1Q earnings estimate due to sluggish oncology device sales

Hit by a slowdown in its oncology business, the medical device maker AngioDynamics Inc (NASDAQ:ANGO) missed Wall Street’s earnings estimate for the fiscal first-quarter, but beat its revenue forecast.

The Latham, NY-based company reported that its loss widened to $469,000 in the three months until the end of August or $0.01 per share, from a loss of less than $100,000 or $0.00 per share, in the year-ago period.

Excluding items, its adjusted net income came to $6.2m, or $0.16 per share, compared to net income of $5m, or $0.13 per share in the year-ago quarter.

The results fell short of the Street’s expectations for profits as analysts had penciled in earnings of $0.18. But its revenue came in at $85.3m, which whizzed past the consensus estimate of $84m.

Net sales from oncology products amounted to $11.6m in the quarter, a fall of 6.1% from the $12.3m reported in the year-ago quarter as sales of its NanoKnife system, which is used to treat tumors, were offset by a slump in sales of its radiofrequency ablation, another technology to destroy tumors.

In the quarter, the company announced two acquisitions to bolster its oncology business. The first was the addition of BioSentry Tract Sealant System technology, which prevents the occurrence of pneurmothorax during lung biopsies, purchased from Surgical Specialties, and the second was the takeover of the privately-held company RadiaDyne, developer of dose monitoring technology for cancer patients.

AngoDynamics now expects full-year earnings to fall in the range of $0.82 to $0.86 per share, with revenue to fall between $354m to $359m.

AngioDynamics makes minimally-invasive medical devices used by doctors for vascular access and oncology as well as to treat peripheral vascular disease.

AngioDynamics shares closed up 1.6% to finish at $24.23.

Story by ProactiveInvestors