AngioDynamics (ANGO) swung to a profit in the fourth quarter from a loss last year, helped by last year’s reserves for legal matters and Acculis recall. However, the medical device maker’s adjusted earnings and revenue came in below Street’s expectations. The company remained cautious as it set its full-year 2019 guidance below analysts’ view.
With net sales rising 1.6% to $88.3 million, the company posted a profit of $2.1 million or $0.06 per share compared to a loss of $12.9 million or $0.35 per share a year ago. The swung was primarily attributable to last year’s reserves for legal matters related to Department of Justice subpoenas, as well as the Acculis recall. Adjusted EPS increased 5.3% to $0.20.
Sales benefited from growth in the Fluid Management, Angiographic Catheters, and AngioVac product lines, as well as two of its Ablation Systems, Solero, and NanoKnife. This was partially offset by declines in its Venous Insufficiency business, PICCs and Midline products. Currency had a positive impact on net sales of about 50 basis points.
US net sales declined 0.7% primarily due to lower sales of its Venous Insufficiency, PICCs, RFA, and NanoKnife product lines. However, International net sales grew 11.8% mostly due to strong performance in Europe.
Peripheral Vascular sales slipped 2.4% due to declines in the Venous Insufficiency and Thrombolytic businesses. Vascular Access sales declined 2.5%, as growth in Ports and Dialysis products was more than offset by reductions in PICCs. However, Oncology/Surgery sales grew 37.5% helped by strong growth in its Solero Microwave Ablation System and an increase in sales of NanoKnife.
Looking ahead into fiscal 2019, AngioDynamics expects net sales of $344-$349 million and adjusted EPS of $0.82-0.86. Free cash flow is likely to be in the range of $38-$43 million, excluding about $12.5 million cash payment to the Department of Justice related to previous legal matters.
Shares of AngioDynamics, which is down 7.44% in the premarket, ended Tuesday’s regular trading session down 1.74% at $22.58 on the Nasdaq. The stock had been trading between $14.97 and $23.95 for the past 52 weeks.
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