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On Monday, H.C. Wainwright analyst Yi Chen increased the price target for AngioDynamics (NASDAQ:ANGO) shares to $16.00, up from the previous target of $15.00, while maintaining a Buy rating on the stock. With the stock currently trading at $9.11, InvestingPro analysis suggests the company is undervalued based on its Fair Value model. The adjustment follows AngioDynamics’ announcement last week of its financial results for the third quarter of fiscal year 2025, which ended on February 28, 2025.
AngioDynamics reported net sales of $72.0 million, surpassing the analyst’s forecast of $71.0 million and showing a pro forma year-over-year growth of 9.2%, despite a 4.2% actual year-over-year decline. The company’s Med Tech segment performed notably well, with net sales reaching $31.3 million, a 21.3% year-over-year increase. However, the Med Device segment experienced a 17.6% decrease in net sales, totaling $40.7 million. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.21 and holds more cash than debt on its balance sheet.
The net loss for the quarter was reported at $4.4 million, or ($0.11) per share, which was significantly lower than the estimated loss of $13.5 million. The Med Tech segment saw growth across all product lines, with notable increases in sales of Auryon, AngioVac, AlphaVac, and NanoKnife disposables. Geographically, U.S. net sales grew by 9.9% to $61.3 million, while international sales saw a 5.1% increase to $10.7 million.
AngioDynamics also reported an adjusted net income of $1.2 million, or $0.03 per share, and an adjusted EBITDA of $6.8 million. The company’s management has revised its full-year 2025 net sales guidance upward to a range of $285-288 million, from the previous $282-288 million. This update reflects expected growth of 14-16% for the Med Tech segment and a flat performance for the Med Device segment, with a gross margin of 53-54%. Additionally, the guidance for adjusted EBITDA (pro forma) has been increased to a range of $4.0 million to $5.0 million, and adjusted EPS (pro forma) is projected to be between ($0.31-0.34) per share.
Chen noted the company’s growth momentum is likely to continue into the fourth quarter of fiscal year 2025. With the company expected to receive a $5.5 million earn-out payment in the fourth quarter and potentially ending the quarter with approximately $55 million in cash, the analyst reiterated a Buy rating and raised the 12-month price target on AngioDynamics shares. InvestingPro data reveals the stock has gained nearly 50% over the past six months, with additional ProTips and detailed financial metrics available for subscribers. The company’s overall Financial Health score stands at FAIR, based on comprehensive analysis of growth, profitability, and momentum factors.
In other recent news, AngioDynamics reported its fiscal second-quarter 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.03, compared to the forecasted -$0.11. The company also posted revenue of $72 million, surpassing the anticipated $70.57 million, marking a 9.2% year-over-year increase. The MedTech segment played a significant role, with a 22.2% increase in revenue, contributing $31.3 million. Following these results, AngioDynamics revised its fiscal year 2025 revenue guidance to a range of $285 million to $288 million, up from the previous $282 million to $288 million. Canaccord Genuity maintained a Buy rating on AngioDynamics, expressing optimism about the company’s technological advancements and its MedTech business’s growth potential. The firm set a price target of $15.00, underscoring confidence in AngioDynamics’ strategic direction and solid quarterly performance. Notably, the MedTech division’s growth was fueled by key products such as Auryon and NanoKnife, with the latter expected to benefit from reimbursement tailwinds starting January 1, 2026. AngioDynamics’ focus on high-margin products has led to improved gross margins, which rose by 290 basis points to 54%.
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