Share prices slipped after hours yesterday after AngioDynamics (NSDQ:ANGO) lowered its outlook for the rest of fiscal 2016, despite a swing to profits on better-than-expected fiscal 3rd-quarter results.
Latham, N.Y.-based AngioDynamics, which ousted former president & CEO Joe DeVivo earlier this week, posted profits of $630,000, or 2¢ per share, on sales growth of 0.9% to $87.4 million for the 3 months ended Feb.29. That compares with Q3 2015 losses of -$4.3 million, or -12¢ per share.
Adjusted to exclude 1-time items, earnings per share were 15¢, a penny ahead of the consensus forecast on Wall Street.
“I believe there is a strong market opportunity for our products and a solid foundation upon which to grow,” James Clemmer, the ex-Covidien bigwig appointed to replace DeVivo, said in prepared remarks. “My focus will be to put us on a pathway toward sustainable and profitable growth through disciplined execution, efficient resource allocation and value-driven innovation.”
“Third-quarter results met our expectations, but top-line growth rates continue to reflect ongoing headwinds that we are facing, including competitive dynamics in vascular access, reimbursement challenges and slower growth internationally,” added interim CFO Michael Trimarchi. “The peripheral vascular business grew 8%, and included AngioVac growth of 28%. Demand for BioFlo continued during the quarter, which saw growth across all product segments in the vascular access business, and now represents 42% of the franchise. In oncology/surgery, our higher-margin growth driver products, Microwave and NanoKnife, continued to show procedural and utilization growth offsetting slower capital sales.”
AngioDynamics cut its forecast for the rest of the fiscal year, saying it now expects to report adjusted EPS of 54¢ to 58¢ on sales of $347 million to $350 million, down from 59¢ to 63¢ on sales of $353 million to $359 million previously. Fourth-quarter adjusted EPS are pegged at 14¢ to 18¢ on sales of $87 million to $90 million.
Investors sent ANGO shares down -2.3% to $11.35 apiece in after-hours trading yesterday, from an $11.62 close.
