Investors in small-cap med-tech not only expect growth, they demand growth. When a company delivers, like Abiomed (ABMD) or Intuitive Surgical (ISRG), investors happily bid the shares up to rich valuations. Where growth is lacking, so too are attractive multiples. Accordingly, any investor who approaches AngioDynamics (ANGO) with the thought that it is seriously undervalued needs to understand that this company absolutely has to start executing on growth initiatives.
Ups And Downs In Fiscal Q2
Revenue growth of nearly 9% in the fiscal second quarter actually puts AngioDynamics in pretty good shape relative to most interventional product companies, as procedure counts have yet to recover from the recession. U.S. growth was 6%, while international sales rose 27%. Looking at the segments, vascular continues to be weak (up just 2%) as a decent result in peripheral therapy offset declines in access. The company's oncology/surgery business continues to be a growth driver as NanoKnife sales doubled to over $3 million and overall segment sales rose 25%.
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AngioDynamics Sorely Testing Investor Patience
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