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SurModics (SRDX) Posts Earnings in Q4, Revenues Top Estimates
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Surmodics Inc. (SRDX - Free Report) reported earnings of 18 cents per share in fourth-quarter fiscal 2017 (ended Sep 30, 2017), comparing favorably with the Zacks Consensus Estimate of a loss of a penny. Reported earnings were, however, lower than the year-ago figure of 26 cents.
Revenues were $20.1 million, up from $18.2 million in the prior-year quarter. Reported revenues also surpassed the Zacks Consensus Estimate of $17 million.
Quarter in Detail
Surmodics reports revenues in two segments – In Vitro Diagnostics (IVD) and Medical Device.
Medical Device
In the reported quarter, sales increased 7.5% to $14.7 million. The growth can be attributed to higher product sales, royalties, research, development and other revenues.
In Vitro Diagnostics (IVD)
Sales rose 19.8% to $5.3 million on higher sales in several product categories.
As of Sep 30, 2017, the company had $16.5 million of cash and cash equivalents compared with $25.0 million as of Sep 30, 2016. Surmodics generated cash from operating activities of $14.1 million in fiscal 2017. Capital expenditures totaled $6.4 million in fiscal 2017.
Outlook
Surmodics expects fiscal 2018 revenues to range from $72.0 million to $75.0 million. Looking at the bottom line, the company expects adjusted loss in the range of 16-41 cents per share.
Our Take
We are impressed by Surmodics’ fourth-quarter fiscal 2017 results, wherein the company beat earnings and revenues. Furthermore, an upbeat guidance raises investors’ faith in the stock. The regulatory approval for SurVeil reflects Surmodics’ solid foothold in developing surface technology for muscular devices, particularly in the drug delivery space. Surmodics is striving to expedite its SurVeil drug-coated balloon development program, which is in a nascent stage. On the flipside, the company expects IVD business to grow in the mid-single digits, compared with double-digit gains realized in fiscal 2016 owing to anticipated top-line headwinds in the near term. Further, foreign-exchange woes related to the Creagh Medical buyout is a major dampener.
Zacks Rank & Key Picks
Surmodics currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical sector are PetMed Express, Inc. (PETS - Free Report) , Luminex Corporation and Intuitive Surgical, Inc. (ISRG - Free Report) . PetMed and Luminex sport a Zacks Rank #1 (Strong Buy), while Intuitive Surgical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed reported earnings per share of 43 cents in the second quarter of fiscal 2018, up 79.2% from the year-ago quarter’s 24 cents. Also, gross margin expanded 548 basis points year over year to 35.2% in the reported quarter.
Luminex reported adjusted earnings per share of 19 cents in the third quarter of 2017, up 216.7% year over year. Revenues increased almost 4.1% year over year to $74.1 million.
Intuitive Surgical posted adjusted earnings of $2.77 per share in the third quarter of 2017, up 34.5% year over year. Revenues rose 18% year over year to $806.1 million.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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SurModics (SRDX) Posts Earnings in Q4, Revenues Top Estimates
Surmodics Inc. (SRDX - Free Report) reported earnings of 18 cents per share in fourth-quarter fiscal 2017 (ended Sep 30, 2017), comparing favorably with the Zacks Consensus Estimate of a loss of a penny. Reported earnings were, however, lower than the year-ago figure of 26 cents.
Revenues were $20.1 million, up from $18.2 million in the prior-year quarter. Reported revenues also surpassed the Zacks Consensus Estimate of $17 million.
Quarter in Detail
Surmodics reports revenues in two segments – In Vitro Diagnostics (IVD) and Medical Device.
Medical Device
In the reported quarter, sales increased 7.5% to $14.7 million. The growth can be attributed to higher product sales, royalties, research, development and other revenues.
In Vitro Diagnostics (IVD)
Sales rose 19.8% to $5.3 million on higher sales in several product categories.
Surmodics, Inc. Price, Consensus and EPS Surprise
Surmodics, Inc. Price, Consensus and EPS Surprise | Surmodics, Inc. Quote
Balance Sheet and Cash Flow
As of Sep 30, 2017, the company had $16.5 million of cash and cash equivalents compared with $25.0 million as of Sep 30, 2016. Surmodics generated cash from operating activities of $14.1 million in fiscal 2017. Capital expenditures totaled $6.4 million in fiscal 2017.
Outlook
Surmodics expects fiscal 2018 revenues to range from $72.0 million to $75.0 million. Looking at the bottom line, the company expects adjusted loss in the range of 16-41 cents per share.
Our Take
We are impressed by Surmodics’ fourth-quarter fiscal 2017 results, wherein the company beat earnings and revenues. Furthermore, an upbeat guidance raises investors’ faith in the stock. The regulatory approval for SurVeil reflects Surmodics’ solid foothold in developing surface technology for muscular devices, particularly in the drug delivery space. Surmodics is striving to expedite its SurVeil drug-coated balloon development program, which is in a nascent stage. On the flipside, the company expects IVD business to grow in the mid-single digits, compared with double-digit gains realized in fiscal 2016 owing to anticipated top-line headwinds in the near term. Further, foreign-exchange woes related to the Creagh Medical buyout is a major dampener.
Zacks Rank & Key Picks
Surmodics currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical sector are PetMed Express, Inc. (PETS - Free Report) , Luminex Corporation and Intuitive Surgical, Inc. (ISRG - Free Report) . PetMed and Luminex sport a Zacks Rank #1 (Strong Buy), while Intuitive Surgical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed reported earnings per share of 43 cents in the second quarter of fiscal 2018, up 79.2% from the year-ago quarter’s 24 cents. Also, gross margin expanded 548 basis points year over year to 35.2% in the reported quarter.
Luminex reported adjusted earnings per share of 19 cents in the third quarter of 2017, up 216.7% year over year. Revenues increased almost 4.1% year over year to $74.1 million.
Intuitive Surgical posted adjusted earnings of $2.77 per share in the third quarter of 2017, up 34.5% year over year. Revenues rose 18% year over year to $806.1 million.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>