Surmodics, Inc. (SRDX - Free Report) is expected to gain from strong growth in theIn Vitro Diagnostics (IVD)segment. Further, the company’s consistent efforts to boost research and development (R&D) functionalities buoy optimism.
Price Performance
In a year’s time, shares of this Zacks Rank #2 (Buy) company have surged 75.2%, against the industry’s 4.5% decline and the S&P 500 index’s fall of 6.6%.
Let us take a quick look at the factors that make Surmodics a solid pick for now.
IVD Segment Driving Growth
Surmodics’ performance continues to be driven by the IVD unit. For more than 35 years, the segment has been a leader in developing an ELISA/EIA, immunoblot/western blot, line assay or microarray.
In the fourth quarter of fiscal 2018, sales in the IVD increased 13.4% to $6.1 million. Per management, the segment saw strong growth in antigen and DNA slide sales in the quarter.
However, operating income in the segment was $2.4 million in the reported quarter, marginally down from the year-ago quarter’s tally. Notably, IVD revenues in the fourth quarter reflected strong growth in antigen and DNA slide sales.
Consistent Efforts to Boost R&D
Surmodics’ efforts to improve R&D stature are a key growth driver. The company’s whole product solutions pipeline and sirolimus-based below-the-knee DCB program deserve a mention here.
Fiscal fourth-quarter R&D expenses were $9.8 million, up 23.4% year over year. Considering the company’s strength in the R&D prospects, it has long-term goals of generating double-digit top line growth by the end of 2019 and EBITDA margins at or above 30% by fiscal 2021.
Which Way Are Estimates Treading?
For the first quarter of fiscal 2019, the Zacks Consensus Estimate is pegged at a loss of a penny, reflecting year-over-year decline of 101%. The same for revenues isat $18.9 million, marking 11.1% improvement year over year.
For fiscal 2019, the Zacks Consensus Estimate for earnings is pinned at 8 cents. For revenues, estimates are pegged at $93.3 million, indicating 14.8% rise year over year.
Surmodics, Inc. Price and Consensus
Other Stocks to Consider
A few other top-ranked stocks in the broader medical space are Veeva Systems Inc (VEEV - Free Report) , Penumbra, Inc (PEN - Free Report) and OPKO Health, Inc (OPK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Veeva Systems’ long-term earnings growth rate is projected at 19.5%.
Penumbra has a long-term earnings growth rate of 20%.
OPKO Health’s long-term earnings growth rate is projected at 12%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Surmodics, Inc. (SRDX - Free Report) is expected to gain from strong growth in theIn Vitro Diagnostics (IVD)segment. Further, the company’s consistent efforts to boost research and development (R&D) functionalities buoy optimism.
Price Performance
In a year’s time, shares of this Zacks Rank #2 (Buy) company have surged 75.2%, against the industry’s 4.5% decline and the S&P 500 index’s fall of 6.6%.
Let us take a quick look at the factors that make Surmodics a solid pick for now.
IVD Segment Driving Growth
Surmodics’ performance continues to be driven by the IVD unit. For more than 35 years, the segment has been a leader in developing an ELISA/EIA, immunoblot/western blot, line assay or microarray.
In the fourth quarter of fiscal 2018, sales in the IVD increased 13.4% to $6.1 million. Per management, the segment saw strong growth in antigen and DNA slide sales in the quarter.
However, operating income in the segment was $2.4 million in the reported quarter, marginally down from the year-ago quarter’s tally. Notably, IVD revenues in the fourth quarter reflected strong growth in antigen and DNA slide sales.
Consistent Efforts to Boost R&D
Surmodics’ efforts to improve R&D stature are a key growth driver. The company’s whole product solutions pipeline and sirolimus-based below-the-knee DCB program deserve a mention here.
Fiscal fourth-quarter R&D expenses were $9.8 million, up 23.4% year over year. Considering the company’s strength in the R&D prospects, it has long-term goals of generating double-digit top line growth by the end of 2019 and EBITDA margins at or above 30% by fiscal 2021.
Which Way Are Estimates Treading?
For the first quarter of fiscal 2019, the Zacks Consensus Estimate is pegged at a loss of a penny, reflecting year-over-year decline of 101%. The same for revenues isat $18.9 million, marking 11.1% improvement year over year.
For fiscal 2019, the Zacks Consensus Estimate for earnings is pinned at 8 cents. For revenues, estimates are pegged at $93.3 million, indicating 14.8% rise year over year.
Surmodics, Inc. Price and Consensus
Other Stocks to Consider
A few other top-ranked stocks in the broader medical space are Veeva Systems Inc (VEEV - Free Report) , Penumbra, Inc (PEN - Free Report) and OPKO Health, Inc (OPK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Veeva Systems’ long-term earnings growth rate is projected at 19.5%.
Penumbra has a long-term earnings growth rate of 20%.
OPKO Health’s long-term earnings growth rate is projected at 12%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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