Company Performance - SurModics reported a quarterly loss of $0.04 per share, better than the Zacks Consensus Estimate of a loss of $0.08, and compared to break-even earnings per share a year ago, representing an earnings surprise of 50% [1] - The company posted revenues of $29.92 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 10.55%, and down from $30.55 million year-over-year [2] - SurModics has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Stock Outlook - SurModics shares have declined approximately 9.7% since the beginning of the year, while the S&P 500 has gained 2.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.04 on revenues of $34.65 million, and $0.19 on revenues of $142.88 million for the current fiscal year [7] Industry Context - The Medical - Products industry, to which SurModics belongs, is currently ranked in the bottom 48% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Revenue Performance - Surmodics reported total revenue of $29.9 million for the first quarter of fiscal 2025, a decrease of $0.6 million or 2% compared to the prior-year quarter[96]. - Medical Device segment revenue was $23.3 million, reflecting a 1% decrease from $23.5 million in the prior-year quarter[96]. - Product sales in the Medical Device segment decreased by 15% to $10.1 million, primarily due to a decline in SurVeil commercial revenue[96]. - Product sales decreased by $2.3 million, or 12%, to $16.5 million in Q1 fiscal 2025 compared to $18.8 million in Q1 fiscal 2024[100]. - IVD product sales decreased by 6% to $6.4 million in Q1 fiscal 2025, primarily due to unfavorable order timing[106]. Revenue Growth Areas - SurVeil DCB license fee revenue was $1.3 million in the first quarter of fiscal 2025, compared to $1.0 million in the same quarter of fiscal 2024, marking a 29% increase[98]. - Performance coating royalties and license fee revenue increased by 14% to $9.4 million, driven by growth in customer utilization of Serene™ hydrophilic coating[98]. - The Pounce thrombectomy device platform continues to show growth, partially offsetting declines in SurVeil revenue[97]. Expenses and Financial Performance - R&D expenses increased by 3%, or $0.3 million, to $8.9 million, representing 30% of total revenue in Q1 fiscal 2025[104]. - SG&A expenses rose by 21%, or $2.6 million, to $15.2 million, accounting for 51% of total revenue in Q1 fiscal 2025[105]. - Product gross profit fell by $0.9 million, or 9%, to $9.1 million, with product gross margins increasing to 55.1% from 53.2% year-over-year[102]. - Total segment operating income increased by $0.2 million to $3.1 million, with the Medical Device segment reporting an operating income of $0.2 million[109]. Cash Flow and Liquidity - Cash used in operating activities was $(7.9) million in Q1 fiscal 2025, an improvement from $(8.8) million in the prior-year period[112]. - Working capital decreased by $2.1 million to $58.7 million as of December 31, 2024[116]. - As of December 31, 2024, the company had cash and cash equivalents totaling $30.1 million, with expectations for sufficient liquidity to meet cash needs and fund operations in fiscal 2025[119]. - The company generated $0.1 million from the sale of common stock related to stock-based compensation plans in the first three months of fiscal 2025, compared to $0.0 million in the same period of fiscal 2024[119]. Debt and Financing - The company expects total interest expense under its credit agreement to be approximately $3.5 million in fiscal 2025[117]. - The company has a revolving credit facility with a maximum availability of $25 million, with an outstanding balance of $5 million as of December 31, 2024[120]. - The term loan outstanding principal was $25 million as of December 31, 2024, with an interest rate fixed at 10.205% per annum for five years[120]. - The company may seek additional liquidity sources, including borrowing or equity financing, to support future cash flow needs[121]. Future Outlook - The company expects a decline of approximately $6.0 million in SurVeil DCB product revenue for fiscal 2025 compared to fiscal 2024[97]. - Future cash requirements will depend on the market introduction and acceptance of products, including the SurVeil DCB distributed by Abbott[121]. - The company anticipates significant SG&A and R&D expenses related to medical device sales and product development in fiscal 2025[119]. - The TRANSCEND pivotal clinical trial is anticipated to be completed in the second quarter of fiscal 2025[98]. Legal and Compliance - The Company maintains effective disclosure controls and procedures as of December 31, 2024, ensuring timely reporting and decision-making regarding required disclosures[133]. - There were no changes in internal control over financial reporting during the three months ended December 31, 2024, that materially affected the internal control[134]. - The Company is involved in various legal actions related to its operations, products, and technologies, including intellectual property and employment disputes[136]. Currency and Market Risks - The company has not entered into any foreign currency forward exchange contracts to hedge against currency fluctuations, exposing it to Euro currency risk[131]. - The company expects ongoing operating losses and interest expenses, which could impact growth initiatives and cash flow generation[125]. Customer Concentration - Abbott and Medtronic are the largest customers, accounting for 16% and 12% of consolidated revenue for fiscal 2024, respectively[122].

Financial Performance - Total revenue for Q1 FY2025 was $29.9 million, a decrease of 2% year-over-year from $30.6 million in Q1 FY2024[4] - Medical Device revenue decreased by $0.3 million, or 1%, to $23.3 million, while In Vitro Diagnostics revenue decreased by $0.4 million, or 5%, to $6.6 million[5][6] - GAAP net loss was $(3.7) million, or $(0.26) per diluted share, compared to a net loss of $(0.8) million, or $(0.06) per diluted share in the prior-year period[9] - Adjusted EBITDA for Q1 FY2025 was $3.6 million, down from $3.9 million in Q1 FY2024[10] - Product sales decreased by 12% to $16,548,000 in Q1 2025 from $18,827,000 in Q1 2024[22] - Net loss for the quarter was $3,651,000, compared to a net loss of $786,000 in the prior year[22] - Adjusted EBITDA for the quarter was $3,641,000, a decrease of 7% from $3,934,000 in Q1 2024[31] - The company reported a basic net loss per share of $0.26, compared to a loss of $0.06 per share in the prior year[22] Cash and Assets - The company reported $30.1 million in cash and investments as of December 31, 2024, with a decrease of $10.0 million in cash and investments during the quarter[11] - Cash and cash equivalents decreased to $30,145,000 from $36,115,000 at the end of the previous quarter[24] - Total assets decreased to $163,740,000 from $178,562,000 at the end of the previous quarter[24] - Total liabilities decreased to $51,971,000 from $59,665,000 at the end of the previous quarter[24] Operating Costs - Operating costs increased by $2.9 million, or 13%, primarily due to merger-related charges[8] - Total operating costs and expenses increased to $32,403,000, up from $30,874,000 in the same quarter last year[22] - The company reported merger-related charges of $2,264 million for the three months ended December 31, 2024, which were not tax deductible[34] Merger and Acquisition - The company is engaged with the FTC regarding the pending acquisition by GTCR, with the goal of completing the merger by the end of Q2 FY2025[4][15] - Merger agreement with GTCR values Surmodics at approximately $627 million, with shareholders set to receive $43.00 per share in cash[4][14] - The company is undergoing a proposed acquisition by GTCR, which has resulted in specific merger-related expenses[36] Product Performance - Product gross margin improved to 55.1%, up from 53.2% in the prior-year period, driven by a favorable product mix[7] - Medical Device revenue, excluding SurVeil DCB license fees, was $22,030,000, down 2% from $22,574,000 year-over-year[28] - The company recognized revenue from SurVeil DCB license fee under the Development and Distribution Agreement with Abbott[36] Shareholder Information - The diluted weighted average shares outstanding for the three months ended December 31, 2024, were 14,231 million[34]

Surmodics, Inc. (SRDX) demonstrated strong performance in the last reported quarter. Its loss per share was 51.9% narrower than the market estimate and sales beat the same by 8.3%. The strong performance was driven by the company’s solid prospects in the thrombectomy business.Meanwhile, SRDX is likely to be acquired by GTCR, a renowned private equity company, for an estimated $627 million in total equity valuation. Although the deal is likely to be closed by March-end taking SRDX private, adding it your por ...

SurModics (SRDX) has been on a downward spiral lately with significant selling pressure. After declining 10.4% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is ...

SurModics (SRDX) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Indi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ | --- | --- | --- | |-----------------------------------------------------------------------------------------------|------------------------ ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - SurModics (SRDX) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the drug delivery technology sector, which is currently experiencing significant growth potential [3] Group 2: Earnings Growth - SurModics has a historical EPS growth rate of 4.5%, but projected EPS growth for this year is expected to be 153.1%, significantly surpassing the industry average of 20% [4] Group 3: Asset Utilization - The asset utilization ratio for SurModics is 0.7, indicating that the company generates $0.7 in sales for every dollar in assets, which is higher than the industry average of 0.61 [5] Group 4: Sales Growth - The company's sales are projected to grow by 13.2% this year, compared to the industry average of only 0.7% [6] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for SurModics, with the Zacks Consensus Estimate for the current year increasing by 6.3% over the past month [8] - This trend supports the stock's Zacks Rank of 1 (Strong Buy) and a Growth Score of B [8] Group 6: Investment Potential - The combination of strong earnings growth, efficient asset utilization, and positive sales growth positions SurModics favorably for outperformance, making it an attractive option for growth investors [9]

Surmodics, Inc. (SRDX) posted a loss per share of 13 cents in the fourth quarter of fiscal 2024 against the year-ago quarter’s earnings per share (EPS) of 53 cents. The metric beat the Zacks Consensus Estimate of a loss of 27 cents per share by 51.9%.GAAP loss per share for the quarter was 24 cents against the year-ago EPS of 47 cents .Revenues in DetailRevenues of $33.2 million rose 18.8% year over year. The figure surpassed the Zacks Consensus Estimate by 8.3%.The top line gained from solid year-over-year ...

SurModics (SRDX) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.27. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 51.85%. A quarter ago, it was expected that this drug delivery technology company would post a loss of $0.31 per share when it actually produced a loss of $0.27, delivering a surprise of 12.90%.Over the last four quarters, t ...