) third quarter fiscal 2013 (ended Jun 30, 2013) earnings of 22
cents per share were in line with the Zacks Consensus Estimate.
The third quarter fiscal 2013 earnings increased 22% from the
year-ago period. The year-over-year growth was primarily
attributable to higher revenues.
Quarter in Details
Revenues climbed 2% 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 54.6% of total revenues with product sales and
research & development accounting for 39.2% and 6.2%,
SurModics' revenues from the Medical Devices segment came in
at approximately $10.6 million, up 3%. Bulk of the segmental
revenues came from the sales of hydrophilic coatings, which
surged 4% from the year-ago period. Revenues from the In Vitro
Diagnostics unit increased marginally to $3.7 million in the
third quarter of fiscal 2013.
This was the eleventh consecutive quarter in which segmental
product revenues surged. In a separate development, the
board of directors at SurModics cleared a $20 million share
buyback program. The buyback program highlights the company's
commitment to create value for shareholders.
Fiscal 2013 Projection Narrowed
With three of the four quarters over for fiscal 2013,
SurModics now has greater clarity of what to expect in the fiscal
year. Consequently, the company narrowed its revenues as well as
SurModics now expects fiscal 2013 revenues in the range of
$55.5-$57 million (old guidance: $55-$58 million). Earnings are
expected in the range of 95 cents-99 cents per share (old
guidance: 86 cents-99 cents). The Zacks Consensus Estimate
currently hints at earnings of 90 cents per share on revenues of
$58 million for fiscal 2013.
SurModics currently carries a Zacks Rank #3 (Hold). Players in
the Medical Devices market, of which SurModics is a part, such as
Boston Scientific Corporation
) appear to be more favorably placed. While Hanger, Inc.
carries a Zacks Rank #1 (Strong Buy), Hospira and Boston
Scientific currently carry a Zacks Rank #2 (Buy).
BOSTON SCIENTIF (BSX): Free Stock Analysis
HANGER ORTHOPED (HGR): Free Stock Analysis
HOSPIRA INC (HSP): Free Stock Analysis Report
SURMODICS (SRDX): Free Stock Analysis Report
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