Surmodics, Inc. ( SRDX Quick Quote SRDX - Free Report) reported adjusted earnings per share of 2 cents for first-quarter fiscal 2021. The Zacks Consensus Estimate was of a loss of 6 cents. The bottomline, however, fell 60% year over year. Revenues
Revenues for the quarter came in at $22.3 million, missing the Zacks Consensus Estimate by 3.8%. Also, the top line dipped 1.3% year over year.
Fiscal Q1 Highlights
In the quarter under review, Product sales were $10.1 million, up 2% from the prior-year quarter. Royalty and license fee revenues totaled $9.3 million, down 7.9% from the prior-year quarter. Research, development and other revenues were $2.9 million, up 16% year over year.
Segmental Analysis Medical Device In the reported quarter, sales at the segment summed $16.2 million, down 7% from the year-ago quarter. In Vitro Diagnostics
In the quarter under review, sales jumped 17% to $6.1 million.
Gross profit for the quarter came in at $18.6 million, down 4.4% year over year. Gross margin was 83.2%, down 262 basis points (bps).
The company reported adjusted operating profit of $0.6 million, up 97.9% year over year. Adjusted operating margin came in at 2.9%, up 146 bps.
The company exited the first quarter of fiscal 2021 with cash and cash equivalents of $35.8 million compared with $30.8 million in the fourth quarter of fiscal 2020.
Net cash used in operating activities came in at $4.3 million compared with $0.9 million in the year-ago period.
Fiscal 2021 Guidance
Due to the continued uncertainty surrounding the duration COVID-19 pandemic, Surmodics will not issue any financial guidance for the current fiscal year for the time being.
Surmodics exited the first quarter of fiscal 2021 on a mixed note. The company saw an increase in Product sales and Research and development revenues in the quarter under review. It attained a $15-million TRANSCEND clinical report milestone under the SurVeil Development and Distribution Agreement with Abbott Vascular. It also completed enrollment in the SWING first-in-human clinical trial for Sundance sirolimus-coated, below-the-knee drug coated balloon (DCB).
Management remains upbeat about Surmodics’ partnership with Cook Medical for the commercialization of .014” and .018” low-profile PTA balloon catheters. The CE Mark for its SurVeil DCB and the FDA clearance for Sublime radial-access 0.014” PTA balloon catheter continued to raise optimism on the stock. Besides, the FDA nod for Pounce Thrombus Retrieval System continues to instill confidence in the stock.
However, the company registered a revenue decline in its Medical Device core unit. Contraction of gross margin is also worrisome.
Zacks Rank and Key Picks
Surmodics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that already announced quarterly results are
Hologic, Inc. ( HOLX Quick Quote HOLX - Free Report) , Abbott Laboratories ( ABT Quick Quote ABT - Free Report) and AngioDynamics, Inc. ( ANGO Quick Quote ANGO - Free Report) . While Hologic sports a Zacks Rank #1 (Strong Buy), the other two presently carry a Zacks Rank#2 (Buy).You can see . the complete list of today’s Zacks #1 Rank stocks here
Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.
Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Further, fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.
AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny. The Zacks Consensus Estimate was of a loss per share of a couple ofcents. Additionally, revenues of $72.8 million beat the consensus mark by 8%.
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