) 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
Surmodics, Inc - Earnings Surprise |
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%,
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 (
), Hospira (
) and Alere (
). All three stocks hold a Zacks Rank #2 (Buy).
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