Based on the latest analyst prediction, Surmodics Inc (NASDAQ:SRDX) is estimated to immensely contract its earnings by beyond -150% next year. Presently, with an EPS of $0.298, we can expect an upcoming EPS of $-0.627. To determine whether this negative growth rate expectation is justified, we should take a look at how the company has been performing in the past. Check out our latest analysis for Surmodics
What can we expect from SRDX in the future?
Surmodics doesn’t seem to have the best years in front of it. Analyst consensus for earnings per share is that it will most likely more than halve from the last earnings update, which could indicate some headwinds going forward. In the same period revenue is predicted to increase from $73M $74M
Basis for the contraction
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is unwarranted or whether the negative outlook is too harsh. SRDX’s earnings growth of -61.14% last year exhibits a continuation of large negative growth, which is worrisome. As a small-cap company, SRDX could be in the stage of growth and high investment, meaning expenses will exceed revenues, leading to a sustained negative growth period.
For SRDX, I’ve compiled three important aspects you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is SRDX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SRDX is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of SRDX? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.