Shares in AngioDynamics (NSDQ:ANGO) fell today after the medical device maker met earnings per share expectations but missed revenue expectations on Wall Street with its 4th quarter and full fiscal year 2017 earnings results.
The Albany, N.Y.-based company posted losses of $10.9 million, or 30¢ per share, on sales of $86.9 million for the 3 months ended May 31, seeing losses on the bottom-line shrink 74.7% while sales shrunk 7% compared with the same period the year prior.
Adjusted to exclude 1-time items, earnings per share for the quarter were 19¢, ahead of the 16¢ EPS consensus on The Street, where analysts were looking for sales of $90.7 million.
For the full year, AngioDynamics reported profits of $7 million, or 19¢ per share, on sales of $349.6 million, seeing the bottom-line swing from losses of $43.6 million the year prior while sales shrunk 1.2% from 2016.
After adjusting to exclude 1-time items, earnings per share were 73¢, above the 70¢ consensus on Wall Street. The company fell short of revenue expectations, with analysts on The Street expecting to see the company bring in $353.6 million for the year.
“The quarter, and year, reflect a commitment to strengthening our business, improving our core operational efficiency and making strategic decisions that will enable long-term, sustainable top-line growth as we outlined in our recent Investor Day, held in April. Over the course of the year, we have worked hard to become a profitable, efficiently run operating company. We ended the year with record high Adjusted EPS of $0.73 and free cash flow of more than $52 million. These are important measures as we look at opportunities to spur growth in fiscal year 2018 and beyond,” CEO Jim Clemmer said in a prepared statement.
“Throughout the 2017 fiscal year, we made strategic decisions to position ourselves for our stated long-term growth objectives. Some of these decisions included writing off assets that we no longer view as strategically aligned, consolidating our physical footprint, evaluating our international opportunities and accelerating previously disclosed legal matters. Even with those items impacting our financial results, we still showed the strength of our business, and balance sheet, through gross margin expansion, EPS growth and strong cash flow. During the year, we generated more than $52 million in free cash flow, paid down $24 million in outstanding debt, repurchased $13.6 million of our common shares, made $10.1 million in contingent consideration payments and refinanced our credit facility to support future investment opportunities,” CFO Michael Greiner said in a press release.
For the coming year, AngioDynamics said it expects to see net sales between $352 and $359 million and adjusted earnings per share between 64¢ and 68¢.
AngioDyanamics said it was also informed by PricewaterhouseCoopers that during its previous fiscal year, it had a material weakness on its Form 10-K, and that the reporting from the previous year “should no longer be relied upon due to the material weakness” which was related to an annual goodwill impairment test.
The company said it would release a Form 10-K/A “solely to revise PwC’s opinion on internal controls over financial reporting.” It said that it would also issue Form 10-Q/As for the 1st 3 quarters of FY2017 to take into account the material weakness, according to an SEC filing.
Shares in AngioDynamics have fallen 5.3% so far today, at $15.36 as of 11:15 a.m. EDT.
