AngioDynamics is a Little Biotech Company up for Investors

AngioDynamics is a company that, according to its website, produces “minimally intrusive medical devices” to treat peripheral vascular disease and cancer. However, with the July 13 disclosure of net sales for the fourth quarter of 2021, some may have taken notice (which ended May 31). A top line of $76.8 million above analyst expectations of $72.7 million, representing a 31.7 percent year-over-year increase over $58.3 million in Q4 2020.

In case investors thought the net sales beat was unsustainable, President and CEO Jim Clemmer pointed out in the earnings call that Q4 revenue was up 8% over the previous quarter. However, because coronavirus headwinds slowed results in Q4 2020, management believes the 8% figure is a more fair reflection of the company’s current progress. As a result, the quarter’s non-GAAP adjusted earnings per share (EPS) met analyst forecasts of $0.06.

This was a significant improvement over the $0.06 loss experienced in Q4 2020 when COVID-19 was causing many people to delay elective procedures. In addition, the company’s VenaCure EVLT varicose vein treatment and some cancer treatments were notably affected. AngioDynamics expects $305 million to $310 million in net revenues for FY 2022, citing growth platforms such as Auryon, NanoKnife, and the upcoming launch of the AlphaVac Mechanical Thrombectomy System (for which the firm also gained FDA permission after the end of Q4). This is up from $291 million in 2021 and $264 million in the fiscal year 2020.

Because the effects of COVID-19 are expected to fade with each passing quarter, AngioDynamics expects its gross margin to improve from 53.9 percent in FY 2021 to 55 percent in FY 2022, allowing it to generate $0 to $0.05 in adjusted EPS in FY 2022 as it continues to invest in R&D, sales, and marketing.