Surmodics, Inc. (SRDX) provides medical devices and in vitro diagnostic technologies. On January 19, the company will present and host meetings with investors at the Sidoti & Company virtual investor conference.
The company’s recent fourth-quarter numbers exceeded expectations on both its top-line and bottom-line fronts. On the back of higher medical device and in vitro diagnostics revenue, total revenue increased 6.3% year-over-year to $24 million, beating estimates by $907,200. Net loss per share at $0.10 came in narrower than expectations by $0.15.
The company sees fiscal 2022 revenue landing between $97 million and $101 million. Net loss per share is expected to be in the range of $1.75 and $1.25.
With these developments in mind, let us take a look at the changes in Surmodics’ key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Surmodics’ top risk category is Tech & Innovation, contributing 30% to the total 37 risks identified. In its recent annual report, the company has added five key risk factors.
Surmodics noted that it may require additional funding. If it is not able to raise additional capital, then its product development programs and commercialization activities could get delayed, reduced, or stopped.
In July 2021, Surmodics acquires Vetex Medical Ltd. However, if it is not successful in integrating the Vetex acquisition, or fails in commercializing its ReVene Venous Thrombectomy Catheter, then Surmodics’ growth and financials may suffer.
Surmodics highlighted that the FDA has requested additional data and may make such requests in the future for the premarket approval of Surmodics’ SurVeil DCB. This may delay FDA action on the premarket application, while adversely impacting Surmodics. Additionally, evolving European Union Medical Device regulations could also lead to increased costs for Surmodics.
Finally, Surmodics sources some of its manufacturing components from sole suppliers. If there are any supply chain constraints or loss of a supplier, then the company’s revenue may take a hit.
Meanwhile, compared to a sector average of 11%, Surmodics’ Production risk factor is at 14%.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 100% Bullish on Surmodics, compared to a sector average of 70%. Surmodics will report its upcoming earnings for the first quarter on February 9. SRDX shares are up 6.9% over the past month.
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