The 10-second takeaway
For the quarter ended Feb. 29 (Q3), AngioDynamics met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank to a loss.
Margins shrank across the board.
AngioDynamics booked revenue of $51.6 million. The four analysts polled by S&P Capital IQ expected a top line of $51.1 million on the same basis. GAAP reported sales were 5.6% lower than the prior-year quarter's $54.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.09. The five earnings estimates compiled by S&P Capital IQ predicted $0.08 per share on the same basis. GAAP EPS were -$0.07 for Q3 versus $0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.0%, 100 basis points worse than the prior-year quarter. Operating margin was 4.4%, 520 basis points worse than the prior-year quarter. Net margin was -3.4%, 1,040 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $52.4 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $216.5 million. The average EPS estimate is $0.38.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 92 members out of 108 rating the stock outperform, and 16 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 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 outperform, with an average price target of $15.38.
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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.