) fourth quarter fiscal 2012 earnings (excluding special items)
of 19 cents per share beat the Zacks Consensus Estimate by 2
cents and the year ago earnings by 10 cents per share. The
impressive performance in the final quarter of fiscal 2012 (ended
September 30, 2012) was primarily attributable to higher
JOHNSON & JOHNS (JNJ): Free Stock Analysis
SURMODICS (SRDX): Free Stock Analysis Report
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Quarter in Details
Adjusted revenues climbed 12.3% year over year to $13.8 million
in the reported quarter. Revenues narrowly missed the Zacks
Consensus Estimate of $14 million. Revenues at SurModics surged
due to increased sales of vitro diagnostics offerings and
hydrophilic coatings. However, revenues on a reported basis stood
at $13.8 million, down 0.7%.
During the final quarter of fiscal 2012, SurModics generated
negligible royalty revenues from
Johnson & Johnson
) pertaining to Cypher and Cypher Select Plus drug eluting
stents. Johnson & Johnson stopped manufacturing these
products from the end of calendar year 2011. Royalty revenues
pertaining to these products were $1.6 million a year ago.
For the reported quarter, royalties and license fees accounted
for approximately 53.6% of the total adjusted revenues with
product sales and research & development accounting for 38.4%
and 8%, respectively.
Following the November 2011 sale of the assets of its
Pharmaceuticals division to Germany's Evonik Industries AG,
SurModics operates through two business units: Medical Devices
and In Vitro Diagnostics.
SurModics' reported revenues from the Medical Devices segment
were approximately $10 million, down 2.4%. Bulk of the segmental
revenues came from the sales of hydrophilic coatings, which
climbed 13%. Reported revenues from the In Vitro Diagnostics unit
increased 5% to $3.8 million in the final quarter of fiscal 2012.
The final quarter of fiscal 2012 witnessed SurModics returning
$55 million cash to its shareholders through a share buyback
program. We believe that the buyback program highlights the
company's commitment to create value for shareholders.
For fiscal 2012 SurModics earned 61 cents per share on an
adjusted basis, beating the Zacks Consensus Estimate by a penny.
The company earned 38 cents per share in fiscal 2011.
Adjusted revenues for fiscal 2012 climbed approximately 12% year
over year to $51.5 million, narrowly missing the Zacks Consensus
Estimate of $52 million.
Fiscal 2013 Projection
Apart from announcing its financial results, SurModics also
provided an outlook for fiscal 2013. Surmodics expects fiscal
2013 revenues in the range of $55-$58 million, up 6%-12% year
over year. Moreover, fiscal 2013 earnings are expected in
the range of 75 cents-87 cents per share. The Zacks Consensus
Estimate currently hints at earnings of 81 cents on revenues of
$57 million for fiscal 2013.
We currently have an Outperform recommendation on SurModics. The
stock carries a Zacks #1 Rank (short-term 'Strong Buy'