On January 10, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy).
PALATIN TECH (PTN): Free Stock Analysis
SURMODICS (SRDX): Free Stock Analysis Report
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Why the Upgrade?
SurModics performed impressively in the fourth quarter of fiscal
2012 (ended September 30, 2012), which included a positive
earnings surprise of 11.8%. The impressive performance in the
final quarter of fiscal 2012 was primarily attributable to higher
Surmodics, a provider of surface modification and drug delivery
technologies to the healthcare industry, performed well
throughout fiscal 2012, delivering positive earnings surprises in
3 of the 4 quarters with an average beat of 19.7%.
Surmodics provided an upbeat forecast for fiscal 2013. The
company 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, well
above the adjusted earnings of 61 cents earned in fiscal 2012.
The long-term expected earnings growth rate for the stock is
SurModics has taken a number of steps to increase efficiencies,
including trimming its work-force and appointing a new Chief
Executive Officer. Moreover, the company's move to sell its
Pharmaceutical unit to focus on its core business is a prudent
Last month, SurModics appointed Andy LaFrence as its new chief
financial officer and Vice President of finance. The appointment
of LaFrence is expected to be beneficial to SurModics since he is
vastly experienced in the finance and capital markets.
The Zacks Consensus Estimate for fiscal 2013 increased 34.8% year
over year to 82 cents per share. The Zacks Consensus Estimate for
fiscal 2014 is currently pegged at 98 cents per share, reflecting
year-over-year growth of 18.7%.
Other Stocks to Consider
Stocks such as
Palatin Technologies, Inc.
), operating in the same industry as SurModics, are also
performing well and are worth considering. While Palatin
Technologies carries a Zacks Rank #1 (Strong Buy), Quidel
Corporation carries a Zacks Rank #2 (Buy).