AngioDynamics Stock Surges Despite Q1 Loss, Cautious Outlook
AngioDynamics, a medical devices manufacturer, has reported its fiscal Q1 2026 results. Despite posting a loss of $0.10 per share, the company's stock surged by 10.5% after beating earnings expectations. The company's gross margins improved significantly, but investors may question its long-term salesforce (profitability).
AngioDynamics' sales growth was driven primarily by its med tech segment, which increased by 26%. However, the medical devices segment grew by only 2%. The company's gross profit margins improved by 90 basis points to 55.3% compared to the previous year. CEO Jim Clemmer described the first quarter as 'outstanding', building on the momentum from fiscal 2025.
The company expects full-year sales to reach between $308 million and $313 million. Med tech sales are projected to grow in the mid-teens, while medical devices sales are expected to remain flat. Despite these projections, AngioDynamics anticipates negative adjusted earnings per share for the full year, ranging from $0.23 to $0.33. The Vanguard Group has increased its stake in the company in recent months.
AngioDynamics' improved gross margins and better-than-expected earnings have led to a stock price surge. However, investors may remain cautious due to the company's projected losses and the slow growth in its medical devices segment. The company's outlook for the full year suggests a challenging path to Macy's (profitability).
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