Earnings Preview For AngioDynamics (ANGO)

AngioDynamics Inc. ANGO will be reporting 2011 fiscal third-quarter results after the bell today. Analysts are expecting the company to report a profit of $0.12 per share versus $0.13 in the year ago period. Revenues are slated to come in at $53.89 million. Earnings estimates have ticked down a penny over the past 30 days. The stock has a market capitalization of $377 million and trades about 76,000 shares on a daily basis. The company designs, develops, manufactures, and markets various therapeutic and diagnostic devices that enable interventional physicians to treat peripheral vascular disease, tumors, and other non-coronary diseases. It operates in three segments: Peripheral Vascular, Access, and Oncology/Surgery. Investors will likely be looking at how many NanoKnife procedures are done during the quarter. The stock has had trouble rising lately due to concern over these procedures and a warning letter from the Food and Drug Administration on January 25. The letter related to the way the company markets its product. After taking off over a year ago, the number of procedures has been slightly declining. The stock is cheap on a book value basis, as it is actually trading below its stated book value, but is more expensive on its trailing price/earnings ratio at 30.3x. Over the past year, the stock has been in a tight range between $13 and $17, and investors will need clarity on future growth of NanoKnife procedures to bid the stock much higher.