The 10-second takeaway
For the quarter ended Nov. 30 (Q2), AngioDynamics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and earnings per share dropped significantly.
Margins dropped across the board.
AngioDynamics reported revenue of $58 million. The five analysts polled by S&P Capital IQ foresaw revenue of $56 million. Sales were 8.9% higher than the prior-year quarter's $53 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.13. The six earnings estimates compiled by S&P Capital IQ predicted $0.12 per share on the same basis. GAAP EPS of $0.09 for Q2 were 31% lower than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 57.2%, 190 basis points worse than the prior-year quarter. Operating margin was 9.2%, 240 basis points worse than the prior-year quarter. Net margin was 4.0%, 210 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $53 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $219 million. The average EPS estimate is $0.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 89 members out of 105 rating the stock outperform, and 16 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give AngioDynamics a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AngioDynamics is hold, with an average price target of $15.43.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.