Why AngioDynamics Crashed Today
Key Points
AngioDynamics beat on both top and bottom lines this morning.
The company still lost $0.04 per share, pro forma, and its GAAP loss was four times bigger.
AngioDynamics has a new CEO taking over after six straight years of losses.
AngioDynamics (NASDAQ:ANGO) stock, maker of such medical devices as the NanoKnife tool for "electrocuting" cancer cells, as well as multiple devices for treating peripheral vascular disease, tumbled 20.7% through 10:20 a.m. ET Thursday despite beating analyst forecasts for Q1 earnings this morning.
Heading into the fiscal Q1 2027 report, analysts expected AngioDynamics to lose $0.11 per share on sales of $80.5 million. Instead, AngioDynamics reported only a $0.04 per share loss, and sales were $80.9 million.
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AngioDynamics Q1 earnings
That sounds like good news. It isn't, really.
First off, while AngioDynamics beat analyst revenue targets, its year-over-year growth was just 6.9%. More importantly, the earnings "beat" -- the $0.04 loss -- was only a pro forma number. When calculated under generally accepted accounting principles (GAAP), AngioDynamics actually lost $0.17 per share. Admittedly, this was less than the $0.24 per share AngioDynamics lost in fiscal Q1 2026. It's still four times as big a loss as the headline figure.
In other news, AngioDynamics named Eric Honroth, currently the Global President of Life Science at Swedish med-tech company Getinge, to replace Jim Clemmer as CEO.
What's next for AngioDynamics stock?
Honroth inherits a company with a debt-free balance sheet and $34 million in cash -- but also a company that's reported nothing but losses since 2020, and one that isn't expected to turn profitable again before 2029, according to analysts polled by S&P Global Market Intelligence.
In fiscal 2027, AngioDynamics has guided investors to expect $336 million to $341 million in sales, pro forma losses between $0.24 and $0.29 per share -- and probably GAAP losses even bigger, if Q1 is any guide.
Any investor hoping for a quick turnaround at AngioDynamics stock is probably hoping in vain.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.