We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Hold on to Surmodics (SRDX) Stock For Now
Read MoreHide Full Article
Surmodics, Inc. (SRDX - Free Report) is well poised for growth in the coming quarters, backed by its consistent efforts to boost research and development (R&D) over the past few months. A robust second-quarter fiscal 2022 performance and solid prospects in the thrombectomy business are expected to contribute further. Yet, concerns related to regulatory headwinds and reliance on third parties persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 30.5% compared with 32.4% fall of the industry and 10.9% decline of the S&P 500 composite.
The renowned medical device and in-vitro diagnostics technology provider has a market capitalization of $515.5 million. Surmodics projects 115.7% growth for fiscal 2023, expecting to maintain its strong performance. SRDX’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in the other, the average earnings surprise being 25.2%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Efforts to Boost R&D: We are optimistic about Surmodics’ solid efforts to improve its R&D stature, which has been a key growth driver. During the first-quarter fiscal 2022 earnings call, Surmodics stated that the Physician Steering Committee for the company's SWING first-in-human (“FIH”) clinical trial had advised the latter to conduct additional analyses of the clinical data. During the second-quarter fiscal 2022 earnings call in April, Surmodics confirmed the completion of these analyses. It also mentioned that physicians and the steering committee were satisfied with both the analyses and the clinical results. The company is looking forward to submitting these data in a late-breaking clinical trial presentation at a conference in the coming months.
Thrombectomy Prospects Bright: Surmodics’ aim to leverage its proprietary Pounce thrombectomy platform technology to develop products raises our optimism. In April, Surmodics announced that its Pounce Thrombectomy System achieved 100% technical success in 20 FIH procedures. Additionally, the data showed that no adjunctive thrombectomy devices were required to remove clots and 95% of these procedures could be performed while avoiding the use of thrombolytics within the target lesion.
Strong Q2 Results: Surmodics’ solid second-quarter fiscal 2022 results buoy optimism about the stock. The company registered robust revenues from its IVD segment, as well as from its Product sales. Surmodics confirmed making crucial progress on its SurVeil drug-coated balloon premarket approval submission. Strong potential in the company’s Sublime Radial Access device and Pounce Arterial Thrombectomy platform raise our optimism about the stock.
Downsides
Regulatory Headwinds: Surmodics’ products and business activities are subject to a complex set of regulations, both in the United States and internationally. Any failure to comply with these legal and regulatory requirements could impact the company’s business. Changes in existing regulations or adoption of new governmental regulations or policies could prevent or delay regulatory approval of products incorporating Surmodics’ technologies or subject the same to additional regulation.
Reliance on Third Parties: A principal element of Surmodics’ business strategy is to enter into licensing arrangements with medical device and other companies that manufacture products incorporating its technologies. The amount of revenues the company derives from such arrangements depend upon its ability or its licensees’ ability to successfully develop, obtain regulatory approval for, manufacture (if applicable), market and sell products incorporating Surmodics’ technologies.
Estimate Trend
Surmodics is witnessing a negative estimate revision trend for 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has widened from a loss of $1.10 to $1.15 per share.
The Zacks Consensus Estimate for the company’s third-quarter fiscal 2022 revenues is pegged at $25.5 million, suggesting a 6.7% improvement from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Omnicell, Inc. (OMCL - Free Report) and Masimo Corporation (MASI - Free Report) .
AMN Healthcare, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.6%.
AMN Healthcare has gained 8.5% against the industry’s 53.5% fall in the past year.
Omnicell, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 20%. OMCL’s earnings surpassed estimates in three of the trailing four quarters and missed the same in the other, the average beat being 13.4%.
Omnicell has lost 22.2% compared with the industry’s 60.1% fall over the past year.
Masimo, carrying a Zacks Rank #2 at present, has an earnings yield of 3.6% against the industry’s negative yield. MASI’s earnings surpassed estimates in the trailing four quarters, the average beat being 4.4%.
Masimo has lost 44.9% compared with the industry’s 30.6% fall over the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Here's Why You Should Hold on to Surmodics (SRDX) Stock For Now
Surmodics, Inc. (SRDX - Free Report) is well poised for growth in the coming quarters, backed by its consistent efforts to boost research and development (R&D) over the past few months. A robust second-quarter fiscal 2022 performance and solid prospects in the thrombectomy business are expected to contribute further. Yet, concerns related to regulatory headwinds and reliance on third parties persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 30.5% compared with 32.4% fall of the industry and 10.9% decline of the S&P 500 composite.
The renowned medical device and in-vitro diagnostics technology provider has a market capitalization of $515.5 million. Surmodics projects 115.7% growth for fiscal 2023, expecting to maintain its strong performance. SRDX’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in the other, the average earnings surprise being 25.2%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Efforts to Boost R&D: We are optimistic about Surmodics’ solid efforts to improve its R&D stature, which has been a key growth driver. During the first-quarter fiscal 2022 earnings call, Surmodics stated that the Physician Steering Committee for the company's SWING first-in-human (“FIH”) clinical trial had advised the latter to conduct additional analyses of the clinical data. During the second-quarter fiscal 2022 earnings call in April, Surmodics confirmed the completion of these analyses. It also mentioned that physicians and the steering committee were satisfied with both the analyses and the clinical results. The company is looking forward to submitting these data in a late-breaking clinical trial presentation at a conference in the coming months.
Thrombectomy Prospects Bright: Surmodics’ aim to leverage its proprietary Pounce thrombectomy platform technology to develop products raises our optimism. In April, Surmodics announced that its Pounce Thrombectomy System achieved 100% technical success in 20 FIH procedures. Additionally, the data showed that no adjunctive thrombectomy devices were required to remove clots and 95% of these procedures could be performed while avoiding the use of thrombolytics within the target lesion.
Strong Q2 Results: Surmodics’ solid second-quarter fiscal 2022 results buoy optimism about the stock. The company registered robust revenues from its IVD segment, as well as from its Product sales. Surmodics confirmed making crucial progress on its SurVeil drug-coated balloon premarket approval submission. Strong potential in the company’s Sublime Radial Access device and Pounce Arterial Thrombectomy platform raise our optimism about the stock.
Downsides
Regulatory Headwinds: Surmodics’ products and business activities are subject to a complex set of regulations, both in the United States and internationally. Any failure to comply with these legal and regulatory requirements could impact the company’s business. Changes in existing regulations or adoption of new governmental regulations or policies could prevent or delay regulatory approval of products incorporating Surmodics’ technologies or subject the same to additional regulation.
Reliance on Third Parties: A principal element of Surmodics’ business strategy is to enter into licensing arrangements with medical device and other companies that manufacture products incorporating its technologies. The amount of revenues the company derives from such arrangements depend upon its ability or its licensees’ ability to successfully develop, obtain regulatory approval for, manufacture (if applicable), market and sell products incorporating Surmodics’ technologies.
Estimate Trend
Surmodics is witnessing a negative estimate revision trend for 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has widened from a loss of $1.10 to $1.15 per share.
The Zacks Consensus Estimate for the company’s third-quarter fiscal 2022 revenues is pegged at $25.5 million, suggesting a 6.7% improvement from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Omnicell, Inc. (OMCL - Free Report) and Masimo Corporation (MASI - Free Report) .
AMN Healthcare, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.6%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has gained 8.5% against the industry’s 53.5% fall in the past year.
Omnicell, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 20%. OMCL’s earnings surpassed estimates in three of the trailing four quarters and missed the same in the other, the average beat being 13.4%.
Omnicell has lost 22.2% compared with the industry’s 60.1% fall over the past year.
Masimo, carrying a Zacks Rank #2 at present, has an earnings yield of 3.6% against the industry’s negative yield. MASI’s earnings surpassed estimates in the trailing four quarters, the average beat being 4.4%.
Masimo has lost 44.9% compared with the industry’s 30.6% fall over the past year.