Why Is Medical Devices-Focused AngioDynamics Stock Trading Lower Today?

AngioDynamics Inc (NASDAQ: ANGO) has reported a second-quarter (Q2) FY24 adjusted EPS loss of $(0.05), compared to the consensus of $(0.07) and EPS income of 1 cent reported a year ago.

Q2 sales increased 2.7% Y/Y to $79.1 million, missing the analyst consensus of $82.04 million, according to data from Benzinga Pro.

Med Tech net sales were $25.4 million, up 3.5% Y/Y, driven by Auryon sales of $11.4 million during the quarter, which increased 12.9%.

Med Device net sales were $53.7 million, up 2.3% Y/Y. 

The gross margin for Q2 FY24 was 50.9%, a decrease of 80 basis points from the gross margin of 51.7% in the second quarter of fiscal 2023, impacted by inflationary pressures, including increased costs for labor and raw materials as well as geographic mix.

Adjusted EBITDA was $1.8 million compared to $2.3 million a year ago.

The company announced shifting its manufacturing operations from a company-owned facility in upstate New York to a fully outsourced model over the next two years. This shift is expected to result in an approximate $15 million annualized expense reduction by fiscal year 2027. The company expects to achieve full-year adjusted EPS profitability in FY27.

Guidance: AngioDynamics expects its fiscal year 2024 net sales of $320 million - $325 million, down from prior guidance of $328 million - $333 million and consensus of $329.05 million, accounting for the softer Thrombectomy sales during the fiscal second quarter, which it now expects will continue throughout the back half of the year, as well as certain SKU rationalization and other impacts associated with the manufacturing restructuring. 

The company expects gross margin to be approximately 49%-51%, down from around 50%-52% expected earlier. 

AngioDynamics expects an adjusted EPS loss of $(0.35)-$(0.42) versus prior guidance of $(0.28)-$(0.34) and consensus of $(0.32).

Price Action: ANGO shares are down 18.3% at $6.330 during the premarket session on the last check Friday.

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