Category: SRDX

SRDX – SurModics (SRDX) Reports Q3 Loss, Misses Revenue Estimates

SurModics (SRDX Free Report) came out with a quarterly loss of $0.17 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -54.55%. A quarter ago, it was expected that this drug delivery technology company would post earnings of $0.60 per share when it actually produced earnings of $0.62, delivering a surprise of 3.33%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

SurModics, which belongs to the Zacks Medical – Products industry, posted revenues of $23.87 million for the quarter ended June 2021, missing the Zacks Consensus Estimate by 0.32%. This compares to year-ago revenues of $26.88 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

SurModics shares have added about 29.5% since the beginning of the year versus the S&P 500’s gain of 17.8%.

What’s Next for SurModics?

While SurModics has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for SurModics was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.21 on $22.16 million in revenues for the coming quarter and $0.31 on $103.4 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical – Products is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

SRDX – Why You Should Add Surmodics (SRDX) to Your Portfolio Now

Surmodics, Inc. (SRDX Free Report) is gaining on regulatory clearances and acquisitions. Consistent R&D efforts have also been contributing to growth for a while now.

The company, with a market capitalization of $766.6 million, is a leading provider of medical device and In Vitro Diagnostics (IVD) technologies to the healthcare industry. The company’s earnings are expected to improve 10% over the next five years. However, this currently Zacks Rank #2 (Buy) company has a trailing four-quarter earnings miss of 369.2%, on average.

In the past three months, the stock has gained 34.4% compared with 3.3% growth of its industry.

Let’s delve deeper into the factors working in favor of the company.

R&D Update: Surmodics’ solid efforts to improve R&D are a consistent key driver. Its whole product solutions pipeline and Sirolimus-based below-the-knee DCB program deserve mention here. The company continues to make significant progress when it comes to its other radial access therapeutic devices including the 0.18 transradial PTA balloon catheter.

In November 2020, the company released 6-month data from the AVESS first-in-human (FIH) study of the company’s Avess AV Fistula DCB. In January 2021, it completed enrollment in the SWING first-in-human clinical trial on Sundance sirolimus DCB, ahead of schedule. SWING enrolled 35 patients across eight sites in Europe, Australia and New Zealand.

Regulatory Approvals: In September 2020, the company received the FDA 510(k) clearance for its Pounce Thrombus Retrieval System, which enables non-surgical removal of thrombi and emboli from the peripheral arterial vasculature. This approval will provide a boost to Surmodics’ Medical Devices segment. With regard to the .018” balloon dilation catheter, the company is making a steady progress through the fiscal first quarter and expects to file for its FDA 510(k) approval in the third quarter of fiscal 2021. It is also on track to attain the PMA for SurVeil by the end of calendar 2021.

Acquisitions and Partnerships: Surmodics made several acquisitions over the last few years, which not only diversified its revenue base but also expanded its customer base.With regard to the company’s product portfolio of specialty catheters, its hydrophilic PTA 0.014″ and 0.018″ balloon catheters, which expanded its partnership with Cook Medical, are now commercially launched in the United States.

This deal is expected to bolster Surmodics’ capability to support key projects and strengthen its technical and business management teams.

Estimate Trend

For fiscal 2021, the Zacks Consensus Estimate for revenues is pegged at $103.5 million, indicating a rise of 9.2% from the prior fiscal year’s reported number. The same for earnings stands at 36 cents per share, suggesting growth of 176.9% from the previous fiscal year’s reported figure.

Other Key Picks

Some other top-ranked stocks from the broader medical space are Align Technology (ALGN Free Report) , Abbott Laboratories (ABT Free Report) and Hologic (HOLX Free Report) . While Align Technology currently sports a Zacks Rank #1 (Strong Buy), the other two presently carry a Zacks Rank of 2 . You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology has a projected long-term earnings growth rate of 19%.

Abbott has a projected long-term earnings growth rate of 14.1%.

Hologic has an estimated long-term earnings growth rate of 15.4%.

Zacks Top 10 Stocks for 2021

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SRDX – SurModics (SRDX) Beats Q1 Earnings Estimates

SurModics (SRDX Free Report) came out with quarterly earnings of $0.02 per share, beating the Zacks Consensus Estimate of a loss of $0.06 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 133.33%. A quarter ago, it was expected that this drug delivery technology company would post earnings of $0.01 per share when it actually produced a loss of $0.18, delivering a surprise of -1,900%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

SurModics, which belongs to the Zacks Medical – Products industry, posted revenues of $22.30 million for the quarter ended December 2020, missing the Zacks Consensus Estimate by 3.81%. This compares to year-ago revenues of $22.62 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

SurModics shares have added about 3.9% since the beginning of the year versus the S&P 500’s gain of 3.5%.

What’s Next for SurModics?

While SurModics has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for SurModics was unfavorable. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.01 on $25.29 million in revenues for the coming quarter and $0.35 on $106.78 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical – Products is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.