Shares of AngioDynamics Inc. (ANGO) took a significant hit, plummeting 16.8% in premarket trading. The medical devices company faced a larger loss for the fiscal second quarter to Nov. 30 compared to the year-ago period. Additionally, they announced a restructuring plan aimed at streamlining their manufacturing footprint.
Widening Losses
AngioDynamics Inc. experienced a net loss of $29.05 million, or 72 cents per share, for the fiscal second quarter, compared to $8.49 million, or 21 cents per share, in the previous year. However, it is important to note that the adjusted per-share loss of 5 cents surpassed the FactSet loss consensus of 8 cents.
Lower Sales Figures
Despite the widening losses, the company reported a 2.7% increase in sales, reaching $79.1 million. However, this amount fell short of the FactSet consensus of $82.0 million.
Revised Guidance for Fiscal 2024
AngioDynamics Inc. revised its revenue guidance for fiscal 2024 to a range of $320 million to $325 million, down from the previous range of $328 million to $333 million. Furthermore, the company adjusted its per-share loss guidance to between 35 cents and 42 cents, compared to the prior guidance of 28 cents to 34 cents.
Streamlining Manufacturing Operations
As part of their restructuring plan, AngioDynamics Inc. intends to move away from a company-owned facility in New York and transition to a fully outsourced model for their manufacturing operations within the next two years. This strategic move is anticipated to help the company achieve adjusted EPS profitability by fiscal 2027.
While AngioDynamics Inc. has experienced an 8.4% gain in the past three months, outperforming the S&P 500 (which advanced 10.1%), their recent announcement has caused a significant drop in their stock value.
