Core Viewpoint - Surmodics, Inc. (SRDX) has shown strong performance in its latest quarter, with a narrower loss per share and sales exceeding market estimates, driven by its thrombectomy business [1][2]. Financial Performance - Surmodics reported a loss per share that was 51.9% narrower than market estimates and sales that beat estimates by 8.3% [1]. - The company achieved sales of $25.8 million in the Medical Device segment, reflecting a 22.4% increase year-over-year, primarily due to product sales from the Pounce thrombectomy device platform and SurVeil DCB [7]. - IVD sales improved by 7.9% to $7.5 million, driven by growth in distributed antigen and microarray slide/surface products [7]. Acquisition Details - Surmodics has entered into a definitive agreement to be acquired by GTCR for an estimated total equity valuation of $627 million, with shareholders set to receive $43.00 per share in cash [2][5]. - The current market price of SRDX shares is around $37, suggesting a potential gain of nearly 15% upon the deal's closure by the end of March [5]. Growth Prospects - Surmodics projects a remarkable 97.2% growth for fiscal 2025 and has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 165.93% [3]. - The company is optimistic about leveraging its proprietary Pounce thrombectomy platform technology, with early results from a study presented at the TCT Symposium and FDA clearance for the Pounce XL Thrombectomy System [6]. Estimate Trends - The Zacks Consensus Estimate for Surmodics' earnings per share for fiscal 2025 has improved by 1 cent to 19 cents, with first-quarter fiscal 2025 revenue estimates at $33.5 million, indicating a 9.5% increase year-over-year [11].

Core Viewpoint - SurModics (SRDX) is experiencing significant selling pressure, with a 10.4% decline over the past four weeks, but is now positioned for a potential trend reversal as it is in oversold territory and analysts expect better earnings than previously predicted [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is used to identify oversold stocks, with a reading below 30 indicating oversold conditions [2] - SRDX has an RSI reading of 11.17, suggesting that the heavy selling may be exhausting itself and a trend reversal could occur soon [5] Group 2: Fundamental Indicators - There is strong consensus among sell-side analysts that earnings estimates for SRDX will increase, with a 5.7% rise in the consensus EPS estimate over the last 30 days [6] - An upward trend in earnings estimate revisions typically leads to price appreciation in the near term [6] Group 3: Analyst Ratings - SRDX holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7]

Core Viewpoint - SurModics (SRDX) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook on its earnings potential, which is expected to drive stock price increases [1][3]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for SurModics indicates an expected earnings per share (EPS) of $0.19 for the fiscal year ending September 2025, reflecting a year-over-year increase of 159.4% [8]. - Over the past three months, the Zacks Consensus Estimate for SurModics has risen by 27.6%, showcasing a trend of increasing earnings estimates [8]. Zacks Rating System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 1 places SurModics in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Market Dynamics - Changes in earnings estimates are strongly correlated with stock price movements, particularly due to the actions of institutional investors who adjust their valuations based on these estimates [4]. - Rising earnings estimates and the corresponding rating upgrade for SurModics suggest an improvement in the company's underlying business, which could lead to increased buying pressure and higher stock prices [5].

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]

Core Points - Surmodics, Inc. reported a loss per share of 13 cents in Q4 fiscal 2024, a significant decline from the previous year's EPS of 53 cents, but better than the Zacks Consensus Estimate of a 27 cents loss by 51.9% [1] - Revenues for the quarter reached $33.2 million, reflecting an 18.8% year-over-year increase and surpassing the Zacks Consensus Estimate by 8.3% [2] Revenue Breakdown - The Medical Device segment generated $25.8 million in sales, a 22.4% increase from the prior year, with revenues excluding SurVeil DCB license fees rising 20% to $23.9 million, slightly above the projected $23.8 million [3] - Product sales in the Medical Device segment were $11.8 million, up 39% year over year, driven by the Pounce thrombectomy device platform and commercial shipments of the SurVeil DCB to Abbott [4] - IVD sales improved by 7.9% to $7.5 million, primarily due to growth in distributed antigen products and microarray slide/surface products, exceeding the projected $6.9 million [5] Financial Metrics - Total product sales amounted to $19.1 million, a 24.3% increase from the previous year, surpassing the projected $18.6 million [6] - Royalties and license fees revenues totaled $11.4 million, up 13.8% year over year, exceeding the projected $10.4 million [6] - Gross profit increased by 17.7% to $24.6 million, although gross margin contracted by 50 basis points to 74.1%, against a projected margin of 69.3% [7] Operating Expenses and Profitability - Selling, general & administrative expenses rose by 13.8% to $14.6 million, while research and development expenses remained flat at $9.7 million [7] - Adjusted operating profit was $1.1 million, reflecting a 3.4% year-over-year increase [8] Financial Position - Surmodics ended Q4 fiscal 2024 with cash and cash equivalents of $36.1 million, down from $38.2 million at the end of Q3 [8] - Total long-term debt was reported at $29.6 million, with net cash provided by operating activities decreasing to $0.2 million from $10.5 million a year ago [8] Acquisition Update - Surmodics is in the process of being acquired by GTCR, with the deal expected to close by March 31, 2025, after receiving shareholder approval [9]

Core Viewpoint - Surmodics, Inc. has received FDA's 510(k) clearance for its Pounce XL Thrombectomy System, which is expected to enhance its thrombectomy business and market position in the medical device sector [1][2]. Company Developments - The Pounce XL Thrombectomy System is designed for the non-surgical removal of thrombi and emboli from peripheral arteries with diameters ranging from 5.5 mm to 10 mm, expanding the capabilities of the Pounce Thrombectomy Platform [5][6]. - Surmodics plans to initiate a limited market release of the Pounce XL Thrombectomy System in the first half of 2025, with full commercialization to follow [1]. - The company reported a market capitalization of $547.9 million and a return on equity of 3.9%, with a recent earnings surprise of 12.9% [4]. Market Prospects - The global thrombectomy devices market was valued at $1.3 billion in 2022 and is projected to reach $2.06 billion by 2030, growing at a CAGR of 5.9%, driven by increasing cardiac cases and sedentary lifestyles [7]. - The recent FDA approval is anticipated to significantly boost Surmodics' business within this growing market [7]. Recent Performance - Following the FDA announcement, Surmodics' shares declined by nearly 0.9% to $38.41, continuing a downtrend despite historical synergies from regulatory approvals [3]. - Over the past year, the company's shares have increased by 25.2%, slightly below the industry's 25.8% rise and the S&P 500's 34.9% growth [10]. Strategic Agreements - Surmodics secured a group purchasing agreement with Premier, Inc. for thrombectomy products, effective June 1, 2024, allowing Premier members to access special pricing for the Pounce and Pounce Venous Thrombectomy Systems [9].

Shares of SurModics (SRDX) have been struggling lately and have lost 5.1% over the past four weeks. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road. The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bullish case fo ...

A downtrend has been apparent in SurModics (SRDX) lately with too much selling pressure. The stock has declined 5.5% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround. Guide to Identifying Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spo ...

SurModics (SRDX) has been on a downward spiral lately with significant selling pressure. After declining 6.3% 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 Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock i ...

For the quarter ended June 2024, SurModics (SRDX) reported revenue of $30.34 million, down 42.2% over the same period last year. EPS came in at -$0.27, compared to $0.52 in the year-ago quarter. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Here is how SurModics performed in the just reported quarter in terms of the m ...