NASDAQ$SRDX

Surmodics Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Surmodics reported an 8% increase in total revenue, driven by a 12% increase in Medical Device revenue, and submitted a complete response to FDA comments on its SurVeil drug-coated balloon application.

Surmodics reported an 8% increase in total revenue for the fourth quarter of fiscal year 2022, driven by growth in Medical Device revenue. Progress was made on strategic objectives, including the submission of a complete response to FDA comments for the SurVeil drug-coated balloon.

  • Total revenue increased by 8% year-over-year to $26.0 million.
  • Medical Device revenue increased by 12% year-over-year, driven by product sales and licensing fee revenue.
  • GAAP Diluted EPS was $(1.06), including $(0.73) deferred tax valuation reserve.
  • Non-GAAP Diluted EPS was $(0.26).

Headline financials

Total Revenue

$26M

Previous: $24M+8.4%
EPS (adj)

-$0.26

Previous: -$0.10-160.0%
Capital Expenditures

$572K

Previous: $2.41M-76.2%
Free Cash Flow

-$3.07M

Previous: -$1.52M-102.6%
Net Income

-$14.7M

Previous: -$289K-4996.2%
Operating Income

-$6.61M

Previous: -$489K-1252.4%
Gross Profit

$8.13M

Previous: $9.08M-10.5%
Cash & Equivalents

$19M

Previous: $31.2M-39.0%
Total Assets

$158M

Previous: $195M-18.6%

Revenue & EPS history

Surmodics · Revenue · Quarterly

$26M

Q4 2022+8.4%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Surmodics · $26M total across 2 segments · Q4 2022

  • Medical Device
    $19.5M+12.1%
  • In Vitro Diagnostics
    $6.49M-1.3%

Forward guidance

Surmodics expects fiscal year 2023 total revenue to range from $103 million to $107 million, representing an increase of 3% to 7% compared to the prior year. The Company expects fiscal 2023 GAAP diluted loss per share to range from $(2.80) to $(2.40).

Tailwinds

  • Fiscal year 2023 total revenue expected to increase by 3% to 7% compared to the prior year.
  • The potential revenue during fiscal 2023 associated with the $30 million, $27 million or $24 million milestone payment would be approximately $27 million, $25 million or $22 million, respectively.
  • New credit agreement with MidCap Financial, comprised of up to $100 million in term loans and a $25 million revolving credit facility.
  • Continued investment to support the commercialization of the Company’s Pounce thrombectomy and Sublime radial access products
  • Surmodics has the potential to receive up to a $30 million milestone payment during fiscal 2023 pursuant to the Abbott Development and Distribution Agreement related to premarket approval (“PMA”) by the U.S. Food and Drug Administration (“FDA”) of the SurVeil DCB.

Headwinds

  • Fiscal 2023 GAAP diluted loss per share to range from $(2.80) to $(2.40).
  • Non-GAAP diluted loss per share in fiscal 2023 is expected to range from $(2.54) to $(2.14).
  • The milestone payment is reduced to $27 million if PMA is received after December 31, 2022, but before June 30, 2023, and to $24 million if PMA is received on or after June 30, 2023.
  • The Company does not expect to receive the PMA prior to January 1, 2023.
  • Revenue from regulatory-related milestones is not included in guidance until after they are achieved.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 6 quarterly earnings reports

Historical avg

+1.4%

Avg return

Earnings day

+3.0%

Avg return

5 days after

+6.9%

Avg return

30 days after

59%

37 / 63 earnings

Positive

+34.5%

Q2 2024

Best reaction

-13.1%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+0.6%+8.5%-8.0%
Q2 2025-1.5%+2.5%+7.6%
Q1 2025-4.1%-4.5%-7.3%
Q4 2024+2.0%+2.3%+6.2%
Q3 2024-0.5%-1.2%-4.5%
Q2 2024+34.5%+26.5%+64.1%
Q1 2024-9.8%-13.0%-9.6%
Q4 2023+1.0%
Q3 2023+4.7%
Q2 2023-2.4%
Q1 2023+4.1%
Q4 2022-3.0%
Q3 2022-7.8%
Q2 2022-1.2%
Q1 2022-11.0%
Q4 2021-11.4%
Q3 2021+3.7%
Q2 2021-5.4%
Q1 2021+15.1%
Q4 2020-2.1%
Q3 2020+0.5%
Q2 2020+3.4%
Q1 2020+6.6%
Q4 2019-13.1%
Q3 2019+13.7%
Q2 2019+0.6%
Q1 2019+17.0%
Q4 2018-11.5%
Q3 2018+11.2%
Q2 2018+7.2%
Q1 2018-0.4%
Q4 2017+0.2%
Q3 2017+1.8%
Q2 2017-7.9%
Q1 2017+1.4%
Q4 2016-6.2%
Q3 2016+8.9%
Q2 2016+14.8%
Q1 2016+8.3%
Q4 2015-2.4%
Q3 2015+9.8%
Q2 2015-2.6%
Q1 2015+3.6%
Q4 2014-3.6%
Q3 2014+2.1%
Q2 2014-4.6%
Q1 2014+7.8%
Q4 2013-3.6%
Q3 2013+10.6%
Q2 2013-6.9%
Q1 2013+1.6%
Q4 2012+0.9%
Q3 2012+10.0%
Q2 2012-1.8%
Q1 2011-1.4%
Q1 2012-1.0%
Q4 2011+1.6%
Q4 2009+1.6%
Q2 2011+1.6%
Q3 2010+1.3%
Q4 2010+1.3%
Q3 2011+1.3%
Q2 2010+1.2%

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