AngioDynamics: Growth Is Encouraging, But Margins Still A Work In Progress

It’s not exactly “business as usual” yet for the healthcare sector, but procedure counts have continued to recover as the pandemic pressures ease, with recoveries in elective procedures particularly notable. Unfortunately, while this recovery has been well-anticipated by the market, there is still evidence that margin pressures may be weighing on the sector more than expected.

Specific to AngioDynamics (NASDAQ:ANGO), the company closed the fiscal year on a strong note with respect to revenue growth, but margins remain challenging and seem likely to remain pressured into FY’23. There’s a lot to like about the company’s growth potential in areas like thrombectomy, atherectomy, and oncology, but it will take time to develop and nurture that growth, and near-term margin pressures are likely to limit multiple expansion unless/until the company can exceed revenue growth expectations by a more meaningful extent.

 

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AngioDynamics: Growth Is Encouraging, But Margins Still A Work In Progress