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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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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.
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.
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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.
Why AngioDynamics Crashed Today was originally published by The Motley Fool