The 10-second takeaway
For the quarter ended June 30 (Q3), SurModics missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins shrank, operating margins dropped, net margins were steady.
SurModics notched revenue of $14.3 million. The two analysts polled by S&P Capital IQ hoped for revenue of $15.0 million on the same basis. GAAP reported sales were 2.4% higher than the prior-year quarter's $14.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.22. The two earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. Non-GAAP EPS of $0.22 for Q3 were 29% higher than the prior-year quarter's $0.17 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.21 for Q3 were 24% higher than the prior-year quarter's $0.17 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 58.0%, 80 basis points worse than the prior-year quarter. Operating margin was 29.7%, 460 basis points worse than the prior-year quarter. Net margin was 21.9%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $15.0 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $57.6 million. The average EPS estimate is $0.99.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 70 members out of 91 rating the stock outperform, and 21 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give SurModics a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SurModics is outperform, with an average price target of $29.63.
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