We are downgrading SurModics Inc. (SRDX) to Underperform from Neutral following its disappointing showing in the final quarter of fiscal 2010. The company missed Zacks Consensus Estimates both in terms of revenues and earnings.
The below-par showing was attributable to the sharp decline in revenues across all segments. We have also trimmed our estimates following the lackluster showing. Surmodics decided to trim its workforce and implement an organizational restructuring in order to serve its customers better.
Unless the move works in the desired direction, we see no reason for investors to own the stock at current levels and hence downgrade the stock to Underperform.
SURMODICS (SRDX): Free Stock Analysis Report
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