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SurModics (SRDX) Moves 5.4% Higher: Will This Strength Last?

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SurModics (SRDX - Free Report) shares ended the last trading session 5.4% higher at $18.32. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 31.9% loss over the past four weeks.

Surmodics recorded a strong price increase following its better-than-expected first-quarter fiscal 2023 financial performance. The company’s adjusted loss per share of 50 cents was narrower than the Zacks Consensus Estimate of a loss of 64 cents, whereas its revenues surpassed the estimate by 3.1%. The company had registered robust revenues from its Medical Device segment, as well as from its Product sales, and royalties and license fees. During the fiscal-first quarter, Surmodics also witnessed strong contributions from sales of its Pounce and Sublime products, indicating their continued solid demand. This looks promising for the stock.

This drug delivery technology company is expected to post quarterly loss of $0.49 per share in its upcoming report, which represents a year-over-year change of -122.7%. Revenues are expected to be $25.99 million, down 0.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For SurModics, the consensus EPS estimate for the quarter has been revised 4.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SRDX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

SurModics is part of the Zacks Medical - Products industry. Bio-Rad Laboratories (BIO - Free Report) , another stock in the same industry, closed the last trading session 2.2% higher at $488.28. BIO has returned 3.8% in the past month.

Bio-Rad's consensus EPS estimate for the upcoming report has changed -0.6% over the past month to $3.24. Compared to the company's year-ago EPS, this represents a change of -34.4%. Bio-Rad currently boasts a Zacks Rank of #2 (Buy).


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