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Surmodics (SRDX) Q2 Earnings Beat Estimates, Revenues Miss
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Surmodics, Inc. (SRDX - Free Report) reported adjusted earnings per share of 62 cents for second-quarter fiscal 2021, beating the Zacks Consensus Estimate of 60 cents by 3.3%. The bottom line also comprehensively topped the year-ago period’s EPS of 4 cents.
Revenues
Revenues for the quarter came in at $34.9 million, missing the Zacks Consensus Estimate by a marginal 0.3%. However, the top line rose 53.5% year over year.
Fiscal Q2 Highlights
In the quarter under review, Product sales were $11.8 million, up 0.8% from the prior-year quarter. Royalty and license fee revenues totaled $20.1 million, up 145.1% from the prior-year quarter. Research, development and other revenues were $3.2 million, up 14.3% year over year.
Segmental Analysis
Medical Device
In the reported quarter, sales at the segment summed $27.9 million, up 71% from the year-ago quarter.
In Vitro Diagnostics
In the quarter under review, sales jumped 9% to $7.1 million.
Operational Details
Gross profit for the quarter came in at $30.8 million, up 61.8% year over year. Gross margin was 88.1%, up 460 basis points (bps).
The company reported adjusted operating profit of $10 million, up from $0.4 million in the year ago period. Adjusted operating margin came in at 28.7%, up 2701 bps.
Cash Position
The company exited the second quarter of fiscal 2021 with cash and cash equivalents of $48.2 million compared with $35.8 million in the first quarter of fiscal 2021.
Cumulative net cash provided by operating activities came in at $11.7 million compared with $1.3 million in the year-ago period.
The company projects current fiscal year revenues to be within $101-$105 million. The Zacks Consensus Estimate for the same is pegged at $103.5 million.
Adjusted diluted EPS for fiscal 2021 is expected within the range of 10-35 cents. The Zacks Consensus Estimate for the same is pegged at 36 cents.
Our Take
Surmodics exited the second quarter of fiscal 2021 on a mixed note.The company saw an increase in Product sales and Research and development as well as in Royalties and license revenues in the quarter under review. It registered revenue growth in its Medical Device and In Vitro Diagnostics core units. The company saw a successful first-patient usage of two Sublime radial access platform devices in the quarter.
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 drug coated balloon (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.
The Zacks Consensus Estimate for Cooper Companies’ second-quarter fiscal 2021 revenues is pegged at $685.2 million, suggesting an improvement of 30.5% from the year-ago quarter’s reported figure. The same for EPS stands at $3.04, indicating growth of 101.3% from the year-ago period’s reported figure. The company currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Owens & Minor’s first quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion. The company currently carries a Zacks Rank of 2.
DENTSPLY SIRONA is presently Zacks #2 Ranked. The Zacks Consensus Estimate for first-quarter 2021 adjusted EPS is pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million.
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Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Surmodics (SRDX) Q2 Earnings Beat Estimates, Revenues Miss
Surmodics, Inc. (SRDX - Free Report) reported adjusted earnings per share of 62 cents for second-quarter fiscal 2021, beating the Zacks Consensus Estimate of 60 cents by 3.3%. The bottom line also comprehensively topped the year-ago period’s EPS of 4 cents.
Revenues
Revenues for the quarter came in at $34.9 million, missing the Zacks Consensus Estimate by a marginal 0.3%. However, the top line rose 53.5% year over year.
Fiscal Q2 Highlights
In the quarter under review, Product sales were $11.8 million, up 0.8% from the prior-year quarter. Royalty and license fee revenues totaled $20.1 million, up 145.1% from the prior-year quarter. Research, development and other revenues were $3.2 million, up 14.3% year over year.
Segmental Analysis
Medical Device
In the reported quarter, sales at the segment summed $27.9 million, up 71% from the year-ago quarter.
In Vitro Diagnostics
In the quarter under review, sales jumped 9% to $7.1 million.
Operational Details
Gross profit for the quarter came in at $30.8 million, up 61.8% year over year. Gross margin was 88.1%, up 460 basis points (bps).
The company reported adjusted operating profit of $10 million, up from $0.4 million in the year ago period. Adjusted operating margin came in at 28.7%, up 2701 bps.
Cash Position
The company exited the second quarter of fiscal 2021 with cash and cash equivalents of $48.2 million compared with $35.8 million in the first quarter of fiscal 2021.
Cumulative net cash provided by operating activities came in at $11.7 million compared with $1.3 million in the year-ago period.
Surmodics, Inc. Price, Consensus and EPS Surprise
Surmodics, Inc. price-consensus-eps-surprise-chart | Surmodics, Inc. Quote
Fiscal 2021 Guidance
The company projects current fiscal year revenues to be within $101-$105 million. The Zacks Consensus Estimate for the same is pegged at $103.5 million.
Adjusted diluted EPS for fiscal 2021 is expected within the range of 10-35 cents. The Zacks Consensus Estimate for the same is pegged at 36 cents.
Our Take
Surmodics exited the second quarter of fiscal 2021 on a mixed note.The company saw an increase in Product sales and Research and development as well as in Royalties and license revenues in the quarter under review. It registered revenue growth in its Medical Device and In Vitro Diagnostics core units. The company saw a successful first-patient usage of two Sublime radial access platform devices in the quarter.
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 drug coated balloon (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, tough competition remains a dampener.
Zacks Rank and Key Picks
Surmodics currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are The Cooper Companies (COO - Free Report) , Owens & Minor, Inc. (OMI - Free Report) and DENTSPLY SIRONA Inc. (XRAY - Free Report) .You can see the complete list of today’s Zacks # 1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Cooper Companies’ second-quarter fiscal 2021 revenues is pegged at $685.2 million, suggesting an improvement of 30.5% from the year-ago quarter’s reported figure. The same for EPS stands at $3.04, indicating growth of 101.3% from the year-ago period’s reported figure. The company currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Owens & Minor’s first quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion. The company currently carries a Zacks Rank of 2.
DENTSPLY SIRONA is presently Zacks #2 Ranked. The Zacks Consensus Estimate for first-quarter 2021 adjusted EPS is pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>