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SurModics (SRDX) Q4 Earnings, Revenues Beat Estimates

SurModics, Inc.SRDX reported adjusted earnings of 30 cents per share in the fourth-quarter of fiscal 2015 (ended Sep 30, 2015), surpassing the Zacks Consensus Estimate of 17 cents and the year-ago figure of 26 cents.

Surmodics Inc. (SRDX) - Earnings Surprise | FindTheCompany

Revenues in the quarter increased 13.2% to $17.4 million, which included $0.8 million of hydrophilic royalty revenues that were previously deferred due to customer-related contingencies. Revenues were above the Zacks Consensus Estimate of $15 million.

For fiscal 2015, SurModics reported earnings of $1.05 per share, beating the Zacks Consensus Estimate of 85 cents and the fiscal 2014 figure of 96 cents. Revenues in fiscal 2015 climbed 7.8% to $61.9 million. Revenues were slightly above the Zacks Consensus Estimate of $60 million.

Quarter in Detail

SurModics reports revenues in segments - In Vitro Diagnostics (IVD) and Medical Device.

Products sales rose 11% to $6.8 million from the year-ago period, reflecting an increase in reagent product sales at the Medical Device segment.

Revenues from the Medical Device segment, which contributes approximately three-quarters to total revenues, came in at $13.1 million, up 17% from the year-ago period. Hydrophilic coating royalty revenues increased 13% year over year to $8.9 million.

Revenues from the IVD unit climbed 3.1% to $4.2 million. The segment benefited from strong sales of stabilization reagents and molecular diagnostics products.

Research and development (R&D) expenses were $4.3 million, up 6.5% from the year-ago figure.

General and administrative expenses increased 3.5% from the year-ago quarter to $3.7 million.

In addition, the company announced that its Board of Directors has authorized a $20 million increase in its existing share repurchase program.

Meanwhile, the company expects to initiate the first-in-human study on the SurVeil drug coated balloon product in the U.S. by the end of second-quarter fiscal 2016.

Outlook

SurModics expects revenues in the range of $56 million to $60 million for fiscal 2016.

R&D expenses are expected to increase approximately 15% to 20% from fiscal 2015. SG&A expenses are expected to decrease slightly.

Our Take

We are impressed by the company's fourth quarter fiscal 2015 results wherein it beat on both revenues and earnings. We are positive on strong hydrophilic coating royalties and reagent product sales. We are further encouraged by the increase in the company's share repurchase authorization.

SurModics carries a Zacks Rank #2 (Sell). Other well-ranked stocks in the health care sector are Flexion Therapeutics, Inc. FLXN , Juniper Pharmaceuticals, Inc. JNP and Corcept Therapeutics Inc. CORT , each sporting a Zacks Rank #1 (Strong Buy).

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SURMODICS (SRDX): Free Stock Analysis Report

CORCEPT THERAPT (CORT): Free Stock Analysis Report

FLEXION THERAPT (FLXN): Free Stock Analysis Report

JUNIPER PHARMA (JNP): Free Stock Analysis Report

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


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

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