The Gory Details on SurModics's Double Miss

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SurModics (NAS: SRDX) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), SurModics missed slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share increased.

Margins increased across the board.

Revenue details
SurModics booked revenue of $11.9 million. The three analysts polled by S&P Capital IQ predicted a top line of $12.2 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $15.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.11. The three earnings estimates compiled by S&P Capital IQ forecast $0.14 per share on the same basis. GAAP EPS were $0.15 for Q1 versus -$0.36 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 56.1%, 1,340 basis points better than the prior-year quarter. Operating margin was 27.0%, 1,870 basis points better than the prior-year quarter. Net margin was 22.7%, 6,340 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $12.5 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $50.2 million. The average EPS estimate is $0.60.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 68 members out of 89 rating the stock outperform, and 21 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give SurModics a green thumbs-up, and six 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 $16.05.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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