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A month has gone by since the last earnings report for SurModics (SRDX). Shares have added about 6.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is SurModics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Surmodics Reports Q4 Loss, Revenues Beat Estimates
Surmodics, Inc. reported adjusted loss per share of 18 cents in fourth-quarter fiscal 2020 against the Zacks Consensus Estimate of earnings per share of a penny. Also, the company reported adjusted EPS of 37 cents in the year-ago quarter.
For fiscal 2020, adjusted EPS came in at 13 cents, missing the Zacks Consensus Estimate by 58.1%. The figure declined 81.9% year over year.
Revenues for the quarter totaled $22.5 million, beating the Zacks Consensus Estimate by 4%. The figure, however, fell 26.9% year over year.
For fiscal 2020, revenues came in at $94.9 million, beating the Zacks Consensus Estimate by 1.1%.However, the figure fell 5.2%.
Fiscal Q4 Highlights
In the quarter under review, Product sales were $10.6 million, down 0.9% from the prior-year quarter. Royalty and license fee revenues totaled $9.9 million, down41.1% from the prior-year quarter. Research, development and other revenues were $2.1 million, down 36.4% year over year.
In the reported quarter, sales at the segment came in at $17.2 million, down 30.9% from the year-ago quarter.
In Vitro Diagnostics
In the quarter under review, sales fell 10.1% to $5.4 million.
Gross profit for the quarter came in at 18.6 million, down 31.4% year over year. Gross margin was 82.7%, down 544 basis points (bps).
The company reported adjusted operating loss of $ 1.4 million against the year-ago quarter’s operating profit of $5.4 million.
The company exited fiscal 2020 with cash and cash equivalents of $30.8 million, compared with $30.4 million a year ago.
Cumulative net cash provided by operating activities came in at $1.3 million compared with $12.5 million in the year-ago period.
Fiscal 2021 Guidance
Due to the continued uncertainty surrounding the duration and extent of the COVID-19 pandemic, Surmodics will not issue any financial guidance for fiscal 2021 for the time being.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -500% due to these changes.
Currently, SurModics has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, SurModics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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