Teleflex
(NYSE: TFX)
shares received a big boost today on third-quarter results that came in ahead of the consensus forecast.
Shares of TFX rose more than 10% to $206.33 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — ticked up slightly.
The Wayne, Pennsylvania-based company posted profits of $137.1 million. That amounts to earnings of $2.90 per share on sales of $746.4 million for the three months ended Oct. 1, 2023. Teleflex posted a 34.6% bottom-line gain on sales growth of 8.7%.
Adjusted to exclude one-time items, earnings per share of $3.64 came in 37¢ ahead of Wall Street expectations. Sales also topped consensus forecasts of $733.56 million.
Teleflex Chair, President and CEO Liam Kelly cited stability in surgical procedures as one driver of the company’s performance. Kelly also noted strength in the Asia Pacific market and healthy increases in Teleflex’s interventional and OEM businesses.
“We also recently completed our acquisition of Palette Life Sciences AB, which will enable our interventional urology business unit to bring urologists, radiation oncologists, and other specialists more innovative technologies that can positively impact patient care,” Kelly said. “Our updated constant currency growth guidance reflects the stronger-than-expected performance over the nine months of 2023. In addition, the guidance includes the expected contribution from our acquisition of Palette partly offset by a loss of revenue from the termination of the manufacturing transition services agreement associated with the divestiture of certain respiratory assets to Medline, which is now expected to occur earlier than originally planned.”
Teleflex projects revenue growth between 6.4% and 6.6%, marking a rise from last quarter’s outlook of 5.8% to 6.55%. It forecast adjusted EPS between $13.30 and $13.50. It narrowed the earnings guidance as the company previously expected between $13 and $13.60.