SurModics Inc.’s (SRDX - Free Report) third quarter fiscal 2013 (ended Jun 30, 2013) earnings of 22 cents per share were in line with the Zacks Consensus Estimate. The third quarter fiscal 2013 earnings increased 22% from the year-ago period. The year-over-year growth was primarily attributable to higher revenues.
Quarter in Details
Revenues climbed 2% year over year to $14.3 million. The Zacks Consensus Estimate was $15 million. Increased sales of vitro diagnostics offerings and hydrophilic coatings were the primary reasons behind the year-over-year improvement.
For the reported quarter, royalties and license fees accounted for approximately 54.6% of total revenues with product sales and research & development accounting for 39.2% and 6.2%, respectively.
SurModics’ revenues from the Medical Devices segment came in at approximately $10.6 million, up 3%. Bulk of the segmental revenues came from the sales of hydrophilic coatings, which surged 4% from the year-ago period. Revenues from the In Vitro Diagnostics unit increased marginally to $3.7 million in the third quarter of fiscal 2013.
This was the eleventh consecutive quarter in which segmental product revenues surged. In a separate development, the board of directors at SurModics cleared a $20 million share buyback program. The buyback program highlights the company’s commitment to create value for shareholders.
Fiscal 2013 Projection Narrowed
With three of the four quarters over for fiscal 2013, SurModics now has greater clarity of what to expect in the fiscal year. Consequently, the company narrowed its revenues as well as earnings guidance.
SurModics now expects fiscal 2013 revenues in the range of $55.5–$57 million (old guidance: $55-$58 million). Earnings are expected in the range of 95 cents-99 cents per share (old guidance: 86 cents-99 cents). The Zacks Consensus Estimate currently hints at earnings of 90 cents per share on revenues of $58 million for fiscal 2013.
SurModics currently carries a Zacks Rank #3 (Hold). Players in the Medical Devices market, of which SurModics is a part, such as Hanger, Inc. , Hospira Inc. and Boston Scientific Corporation (BSX - Free Report) appear to be more favorably placed. While Hanger, Inc. carries a Zacks Rank #1 (Strong Buy), Hospira and Boston Scientific currently carry a Zacks Rank #2 (Buy).