Teleflex
(NYSE: TFX)
shares fell this morning despite strong second-quarter results and an increased full-year guidance.
Shares of TFX dipped 2.8% at $241.75 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — fell 0.8%.
The Wayne, Pennsylvania-based company posted profits of $111.3 million in the quarter. That amounts to $2.23 per share on sales of $743.3 million for the three months ended July 2, 2023.
Teleflex recorded a 5.5% bottom-line gain on sales growth of 5.5%.
Adjusted to exclude one-time items, earnings per share came in 20¢ ahead of Wall Street expectations of $3.21. Sales topped analysts’ forecasts too as they projected $729.9 million in revenue.
Teleflex’s OEM business reported the strongest growth, improving by 20.2% year-over-year. Vascular Access (6%), Interventional (9.1%) and Surgical (6.3%) grew as well. Anesthesia (down 3.7%) and Interventional Urology (2.5%) both saw revenue declines.
“Our solid second quarter performance reflects the strength of our diversified product portfolio and global execution,” said Liam Kelly, Teleflex chair, president and CEO. “The global environment was stable during the second quarter, and we expect a continuation in the second half of 2023. In addition, we took an important step forward in our durable growth strategy with the agreement to acquire Palette Life Sciences AB.
“The acquisition of Palette provides us with a high growth portfolio featuring a sculptable rectal spacer that will expand our Interventional Urology franchise with complementary adjunctive therapy for prostate cancer, which we expect will contribute meaningfully to our growth in the coming years.”
Teleflex raised its full-year revenue growth outlook to between 5.8% and 6.55%. That reflects the company’s expectation of no impact from foreign exchange rates. The company maintained its adjusted EPS forecast for between $13 and $13.60.