Surmodics Releases Q3 Mixed Bag, Increases EPS Tips

Shares of Surmodics (NSDQ:SRDX) were flat before hours today on third-quarter earnings mixed against consensus forecasts.

The Eden Prairie, Minn.-based vitro technology developer posted losses of $5.7 million, or 41¢ per share, on sales of $24.9 million for the three months ended June 30 2022, for a deeper slide into the red of sales growth of 4.1%.

Adjusted to exclude one-time items, losses per share were 34¢, 4¢ ahead of Wall Street, where analysts had forecast sales of $25.2 million.

Surmodics reported $17.5 million in medical device revenue, compared to $16.8 million the previous year, a 5% year-over-year increase. Medical device revenue includes $1 million from a development and distribution agreement with Abbott for the SurVeil drug-coated balloon for the third quarters of 2021 and 2022.

The company earned $7.3 million in revenue from its in vitro diagnostics business, up from $7.1 million the previous year.

“We delivered strong financial results in line with our expectations, while continuing to make meaningful investments in our growth initiatives,” Surmodics President and CEO Gary Maharaj said in a press release. “Importantly, we are demonstrating early and promising commercial viability for our Pounce and Sublime products with our commercial footprint and customer base.”

Surmodics raised the bottom of its 2022 EPS guidance to reflect strong results, but lowered its revenue guidance to reflect “expected weakness in customer demand.”

The company now expects to post adjusted losses per share of between $1.50 and $1.35, down from $1.70 and $1.35 previously, and has updated its sales guidance to 97-99 millions of dollars. The previous projection was between $98 and $101 million.

Shares of SRDX yesterday closed down 0.4% at $37.99 per share, but were flat before the market opened today following the company’s quarterly earnings release.

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