Will AngioDynamics Earnings Rise With Its Soaring Stock?

AngioDynamics (NASDAQ: ANGO  ) will release its quarterly report on Thursday, and shareholders are celebrating the stock's return to levels last seen in early 2012 on several promising pieces of news recently. Yet AngioDynamics earnings could throw cold water on investors' excitement, as the company is expected to post a big drop in year-over-year profitability.

AngioDynamics is the maker of numerous medical devices, including the NanoKnife ablation system for removing soft tissue, its AngioVac blood clot removal product, and the BioFlo catheter drug-delivery system. With all the attention that robotic surgical systems from Intuitive Surgical (NASDAQ: ISRG  ) and MAKO Surgical (UNKNOWN: MAKO.DL  ) have gotten lately, AngioDynamics' products have largely fallen out of the limelight. But recent signs of success could return AngioDynamics to the forefront of investors' minds. Let's take an early look at what's been happening with AngioDynamics over the past quarter and what we're likely to see in its report.

Stats on AngioDynamics

Analyst EPS Estimate

$0.03

Change From Year-Ago EPS

(70%)

Revenue Estimate

$82.54 million

Change From Year-Ago Revenue

(1%)

Earnings Beats in Past 4 Quarters

4

Source: Yahoo! Finance.

Will AngioDynamics earnings deliver another good surprise this quarter?
In recent months, analysts have cut back on their views for AngioDynamics earnings. They've nicked a nickel per share from their August-quarter estimates, and although they've kept fiscal 2014 projections nearly unchanged, they've cut fiscal 2015 estimates by nearly a third. The stock, though, has climbed substantially, rising almost 19% since early July.

AngioDynamics came into the quarter on a positive note, with solid results from its most recent quarterly results. The company narrowed its losses by about 85% from the year-ago quarter, with sales rising substantially due to its acquisition of Navilyst Medical. Sales of the AngioVac were higher than expected, and it got FDA approval under an investigation-device exemption to test the NanoKnife in a prostate cancer trial.

AngioDynamics has gotten a good deal of good news this quarter. In August, the company's Navilyst subsidiary received FDA approval for an enhanced version of its BioFlo Port using its Endexo technology in order to reduce thrombus accumulation on and in the catheter. By seeking to prevent thrombosis, the product could be a big improvement over existing catheter technology, with a launch expected late next year. Last month, it also got Health Canada approval to distribute its Celerity system as an alternative to chest x-rays and fluoroscopy in order to confirm proper placement of catheters.

But AngioDynamics is also taking care of business. It announced a debt restructuring late last month that will cut its interest costs and help give it more flexibility in pursuing strategic moves in the future.

The big question for AngioDynamics is whether it will make it into the next phase of accelerated growth. Both MAKO and Intuitive Surgical were able to build early successes into much larger growth opportunities as the full potential of their systems became known. MAKO attracted a lucrative buyout bid recently from Stryker, rewarding shareholders who stuck with the company through uncertainties about its future prospects. Intuitive still trades well below its peak levels, but its da Vinci surgical system has potential for wider adoption if health-care providers decide its benefits are worth the investment.

In the AngioDynamics earnings report, watch to see how it describes its recent successes. With things looking up for AngioDynamics, investors might be at the beginning of a long growth curve for the company going forward.

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