Behind The Numbers – AngioDynamics (ANGO)

We recently covered this name in the June 21st W/E Research (See HERE) with a bull case surrounding the company’s AURYON product. This past week, the company reported their Q4 earnings and the stock dropped by 11%. With that, I wanted to provide an update as we started to get questions on it. First off, here is a quick earnings breakdown:

-EPS of ($0.06) vs ($0.06) estimate – In-Line
-Revenue of $58.3M vs $64.3M estimate – Miss
-Net Sales decreased 18.1% Y/Y
-Oncology Net Sales decreased 18% Y/Y
-Vascular Interventions and Therapies Net Sales decreased 28.8% Y/Y
-Vascular Access Net Sales decreased 4.6% Y/Y
-Gross Margin decreased 630bps Y/Y

CEO Jim Clemmer, in the press release and to no one’s surprise, noted that their Q4 sales were impacted by the deferral of elective procedures associated with COVID-19. However, since that time, management stated that they have seen a steady improvement in procedure volumes and with it a corresponding improvement in sales. “Our revenue has not yet returned to pre-COVID levels, but I can report to you that this positive trend continued throughout June, and the first half of July, and we are seeing encouraging trends in our marketplace.”

Management also mentioned on the conference call that during the quarter, overall results were negatively impacted by a recall initiated by Bard that is related to a component in their VA kits that they provide. The full net impact inclusive of costs incurred was roughly $750,000 during the fourth quart