Teleflex (NYSE:TFX) today reported fourth-quarter results that beat the Wall Street consensus on earnings but missed on revenue.
Analysts initially described its revenue growth guidance for 2023 as disappointing.
The Wayne, Pennsylvania–based maker of critical care and surgical products earned $78.6 million, or $1.66 per share, off $758.0 million for the quarter that ended Dec. 31, 2022. The bottom line was down nearly 39% compared with Q4 2021. Revenue declined slightly.
Adjusted to exclude one-time items, Telflex had an EPS of $3.52. The result was 8¢ ahead of the The Street, where analysts expected EPS of $3.44 and revenue of $760.35 million.
“Our business showed continued resilience in the fourth quarter with a sequential improvement in constant currency revenue growth and margin expansion,” Teleflex CEO Liam Kelly said in a news release.
“In the quarter, we maintained healthy margins, and advanced our capital allocation strategy with the completion of the acquisition of Standard Bariatrics. As we look into 2023, we remain committed to our corporate strategy for durable growth.”
Teleflex expects revenue to grow 4.25–5.75% in 2023. The projection includes an 0.5% negative impact from foreign exchange rate fluctuations. Truist analysts, in their initial quick thoughts on the earnings report, said the revenue growth projection was slightly below the low-end of management’s long-range planning of 6–7%.
The company predicts adjusted EPS of $13.00–13.60 this year. The range would represent a slight dip in earnings — up to 4.1% year-over-year growth. The Street has predicted $13.49.
TFX shares were down more than 1% to $237.45 apiece in morning trading. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up more than 8%.