U.S. markets closed
  • S&P Futures

    4,528.00
    +3.75 (+0.08%)
     
  • Dow Futures

    34,943.00
    +33.00 (+0.09%)
     
  • Nasdaq Futures

    15,056.25
    +22.75 (+0.15%)
     
  • Russell 2000 Futures

    2,060.60
    +1.40 (+0.07%)
     
  • Crude Oil

    86.00
    -0.96 (-1.10%)
     
  • Gold

    1,841.90
    -1.30 (-0.07%)
     
  • Silver

    24.17
    -0.06 (-0.25%)
     
  • EUR/USD

    1.1364
    +0.0017 (+0.15%)
     
  • 10-Yr Bond

    1.8270
    -0.0380 (-2.04%)
     
  • Vix

    23.85
    +1.06 (+4.65%)
     
  • GBP/USD

    1.3630
    +0.0019 (+0.14%)
     
  • USD/JPY

    114.2100
    -0.1430 (-0.13%)
     
  • BTC-USD

    41,776.32
    -625.40 (-1.47%)
     
  • CMC Crypto 200

    990.72
    -4.03 (-0.40%)
     
  • FTSE 100

    7,589.66
    +26.11 (+0.35%)
     
  • Nikkei 225

    27,463.16
    -4.07 (-0.01%)
     

Why Is SurModics (SRDX) Up 6.4% Since Last Earnings Report?

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

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

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.

Segmental Analysis

Medical Device

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.

Operational Details

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.

Cash Position

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.

VGM Scores

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.

Outlook

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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Surmodics, Inc. (SRDX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.