SurModics Beats on Earnings in Q3, Guidance Revised - Analyst Blog

By
A A A

SurModics ' ( SRDX ) third quarter fiscal 2014 (ended Jun 30, 2014) earnings of 27 cents per share beat the Zacks Consensus Estimate by 4 cents. The third quarter fiscal 2014 earnings increased 22.7% from the year-ago period. Shares of the company reacted positively to the earnings report.


Surmodics, Inc - Earnings Surprise | FindTheBest

Quarterly Highlights

Revenues increased 2.3% to $14.6 million, roughly in line with the Zacks Consensus Estimate of $15 million. Revenues from in vitro diagnostics climbed 3% to $3.8 million.

For the reported quarter, royalties and license fees accounted for approximately 50.5% of total revenues with product sales and research & development accounting for 41.5% and 8%, respectively.

SurModics' revenues from the Medical Devices segment came in at approximately $10.8 million, up 2.2%. The bulk of the segmental revenues came from hydrophilic coatings royalties, which were flat at $7.2 million. The company is developing its high potential drug coated balloon program. The coronary sub-group declined by 7% in the reported quarter. SurModics exited the quarter with cash and investments of $57.1 million with no debt.

Apart from releasing earnings results, SurModics announced the filing a $175 million universal shelf registration statement on Form-S3 with the SEC to supplement its capital resources.

Fiscal 2014 Projection

SurModics still expects 2014 revenues in the range of $56 million to $58.5 million. The Zacks Consensus Estimate of $57 million is well within the guidance range. SurModics now expects earnings per share in the range of 90 cents to 97 cents compared with the previously guided range of 85 cents to 97 cents.  The Zacks Consensus Estimate is 92 cents per share. The company continues to forecast fiscal 2014 capital expenditure in the range of $2.2 million to $2.5 million.

SurModics currently carries a Zacks Rank #3 (Hold). Better ranked stocks in the medical sector include Abaxis ( ABAX ), Hospira ( HSP ) and Alere ( ALR ). All three stocks hold a Zacks Rank #2 (Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SURMODICS (SRDX): Free Stock Analysis Report

HOSPIRA INC (HSP): Free Stock Analysis Report

ABAXIS INC (ABAX): Free Stock Analysis Report

ALERE INC (ALR): 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 The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: SRDX , HSP , ABAX , ALR

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

85,117,424
  • $6.78 ▲ 11.88%
77,261,676
  • $17.53 ▲ 1.56%
61,066,548
  • $6.90 ▲ 2.99%
56,847,440
  • $112.65 ▲ 2.96%
52,788,366
  • $7.78 ▲ 1.83%
50,761,400
  • $25.14 ▲ 2.91%
47,781,237
  • $45.35 ▲ 10.18%
45,664,909
  • $7.17 ▲ 2.14%
As of 12/18/2014, 04:15 PM


Find a Credit Card

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