Earnings Beat at SurModics in Q4 - Analyst Blog


Shutterstock photo

SurModics Inc. 's ( SRDX ) fourth quarter fiscal 2013 (ended Sept 30, 2013) adjusted earnings of 24 cents per share beat the Zacks Consensus Estimate of 22 cents. The fourth quarter fiscal 2013 earnings increased 20% from the year-ago period. The year-over-year growth was primarily attributable to higher revenues.

Quarterly Highlights

Revenues climbed 3% year over year to $14.3 million. The Zacks Consensus Estimate was $15 million. Increased sales of vitro diagnostics offerings and hydrophilic coatings were the primary reasons behind the year-over-year improvement.

For the reported quarter, royalties and license fees accounted for approximately 52.3% of total revenues with product sales and research & development accounting for 40.7% and 7%, respectively.

SurModics' revenues from the Medical Devices segment came in at approximately $10.3 million, up 3%. Bulk of the segmental revenues came from the sales of hydrophilic coatings, which climbed 1% from the year-ago period. Revenues from the In Vitro Diagnostics unit increased 4% to $4 million in the fourth quarter of fiscal 2013. This was the12th consecutive quarter in which segmental product revenues surged.

Annual Results

For fiscal 2013, SurModics reported earnings of 85 cents per share short of the Zacks Consensus Estimate by 2 cents. Fiscal 2013 earnings were approximately 29% higher than the fiscal 2012 figure.

Revenues in fiscal 2013 climbed 8% to $56.1 million primarily on the back of impressive hydrophilic coating royalty revenues. Revenues were marginally short of the Zacks Consensus Estimate of $57 million.

Fiscal 2014 Projection

Apart from announcing its earnings results, SurModics also provided guidance for fiscal 2014. SurModics expects fiscal 2014 revenues in the range of $58-$62 million. Earnings are expected in the range of 80 cents-92 cents per share. The Zacks Consensus Estimate currently hints at earnings of 95 cents per share on revenues of $63 million for fiscal 2014. The company forecasts fiscal 2014 capital expenditure in the range of $2.2-$2.5 million.

In a separate development, SurModics inked a $20 million line of credit three year agreement with Wells Fargo ( WFC ).

SurModics currently carries a Zacks Rank #4 (Sell). Companies like Actelion Ltd . ( ALIOF ) and AMAG Pharmaceuticals, Inc. ( AMAG ) appear to be well placed with a Zacks Rank #1 (Strong Buy).


AMAG PHARMA INC (AMAG): Free Stock Analysis Report

SURMODICS (SRDX): Free Stock Analysis Report

WELLS FARGO-NEW (WFC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
More Headlines for: ALIOF , AMAG , SRDX , WFC

More from Zacks.com




Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com