AngioDynamics beat earnings this morning.
The company did that not by earning more than expected, though, but by losing less than expected.
Full-year earnings will still be negative.
AngioDynamics (NASDAQ: ANGO) stock soared 10.5% through 11:25 a.m. ET Thursday after beating on "earnings" (sort of) this morning.
Heading into the report, analysts forecast AngioDynamics would lose $0.12 per share in its fiscal Q1 2026, on sales of $72.7 million. In fact, the medical devices maker lost only $0.10 per share (technically a "beat," but still a loss), and sales were 75.7 million.
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CEO Jim Clemmer declared: "We had an outstanding first quarter as we continued to build off of the strong momentum created in fiscal 2025."
But not all of AngioDynamics's news was good. Sales grew 12% year over year, propelled by 26% growth in its med tech segment, but only 2% growth in medical devices. Despite earning 55.3% gross profit margins on these sales, though -- 90 basis points better than one year ago -- actual earnings as calculated according to generally accepted accounting principles (GAAP) were considerably worse than the $0.10 per-share "adjusted" profit noted above.
Two-and-a-half times worse, in fact. GAAP losses for the quarter came to $0.26 per share.
Turning to guidance, AngioDynamics told investors to expect higher sales this fiscal year, $308 million to $313 million, with med tech sales growing to the mid-teens and offsetting flat performance at the medical devices business.
Management didn't give guidance for GAAP earnings, but admitted adjusted profits will run negative all year long -- $0.23 to $0.33 per share. And while free cash flow will be "positive," AngioDynamics wasn't able to say by how much.
Long story short, nearly four decades after its founding, AngioDynamics remains years away from profitability. Any investors losing patience would be best advised to use today's stock price surge as an opportunity to sell, and exit the stock.
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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.