SurModics, Inc. (NASDAQ:SRDX) share prices surged 16.20% to $23.10 after the company printed an upbeat earnings report and gained an “Outperform” rating from Barrington Research this week.
SurModics, Inc. (NASDAQ:SRDX) is a provider of surface modification and in vitro diagnostic technologies to the healthcare industry. It operates in two main segments: medical device and in vitro diagnostics. The company is also working to transform its medical device business from being a provider of coating technologies to offering whole product solutions to medical device customers.
Earlier in the week, SurModics, Inc. (NASDAQ:SRDX) printed its earnings report for the first quarter of the year. GAAP earnings per share came in at $0.06 from continuing operations while revenue landed at $16.7 million, higher than forecasts around $15 million. Non-GAAP earnings per share stood at $0.20, higher than the consensus estimate at $0.09.
In addition, the company predicts that 2016 revenue will come in around $63 million to $66 million and capital expenditures to amount to $8 million to $9 million. With that, SurModics expects its full-year earnings per share to reach $0.75 to $0.85 from prior estimates of $0.66 to $0.75. SurModics EPS has beaten analysts’ expectations for three out of the last five quarters, indicating positive momentum for the company.
Shares of SurModics also enjoyed stronger trading volumes yesterday, with 283,809 shares trading hands compared to the average daily volume of 54,604 shares. On Tuesday, Barrington Research upgraded its outlook for SurModics, Inc. (NASDAQ:SRDX) to “Outperform” citing a price target of $30. This would represent a potential increase of 29.62% from current price levels.
Stock prices gapped higher on Tuesday, bringing it close to a new six-month high. SurModics, Inc. (NASDAQ:SRDX) shares have traded between $17.45 to $27.68 in the past year so the stock is also nearing the top of its longer-term range and might be due for an upside breakout and further rallies should the Barrington Research estimates be achieved.
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