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Teleflex Incorporated TFX posted first-quarter 2025 adjusted earnings per share (EPS) from continuing operations of $2.91, down 9.3% from the year-ago quarter’s figure. The metric topped the Zacks Consensus Estimate by 1%.
GAAP EPS was $2.07 compared with $0.33 in the prior-year period.
Following the announcement, shares of the company rose 0.4% last Friday.
Net revenues fell 5% year over year (down 3.8% at constant exchange rate or CER) to $700.7 million. However, the metric surpassed the Zacks Consensus Estimate by 0.2%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Teleflex has three reportable segments — Americas, EMEA (Europe, the Middle East and Africa) and Asia (Asia Pacific).
Net revenues in the Americas were $475.7 million, which decreased 3.7% from the year-ago period’s level (down 3.2% at CER). This compares with our model’s projection of $477.9 million for the quarter.
The EMEA (Europe, the Middle East and Africa) net revenues of $151.2 million decreased 5.3% year over year (down 2.8% at CER). Our model projected revenues of $144.4 million for the quarter.
Revenues from Asia (Asia Pacific) fell 12.8% to $73.8 million (down 9.7% at CER). Our model’s projection was $75.4 million.
The Vascular Access segment recorded net revenues of $182.4 million, up 1.9% year over year at CER. This compares with our model’s projection of $179.6 million.
The Interventional business registered net revenues of $137.5 million, up 3.2% year over year at CER. This compares with our model’s projection of $137.4 million.
Within the Anesthesia segment, net revenues decreased 8.6% year over year at CER to $86.6 million. This compares with our model’s projection of $91.6 million.
The Surgical segment recorded net revenues of $105.8 million, up 2% year over year at CER. Our model’s projection was $108.7 million.
Revenues from the Interventional Urology segment totaled $71 million, down 10.7% year over year at CER. This compares with our model’s projection of $70.1 million.
OEM recorded revenue growth of $63.9 million, down 26.8% year over year at CER. This compares with our model’s projection of $64 million.
The Other product segment’s (consisting of the company’s respiratory products not included in the divestiture to Medline, manufacturing service agreement revenues and Urology Care products) net revenues of $53.5 million registered a year-over-year increase of 4.5% at CER. This compares with our model’s projection of $46.6 million for the quarter.
The gross profit totaled $389.4 million, down 6.4% year over year. The gross margin contracted 82 basis points (bps) to 55.6% due to a 3.3% rise in the cost of goods sold.
Overall, the adjusted operating profit was $130.3 million, down 4.2% year over year. The adjusted operating margin expanded 17 bps to 18.6%.
Teleflex exited the first quarter of 2025 with cash and cash equivalents of $284.1 million compared with $290.2 million at the end of the fourth quarter of 2024.
Teleflex Incorporated price-consensus-eps-surprise-chart | Teleflex Incorporated Quote
Net cash flow provided by operating activities from continuing operations was $73.3 million compared with $112.8 million in the year-ago period.
GAAP revenue growth for 2025 is now expected to be in the range of 1.28-2.28% (down from the prior guidance of 0.4% decline to 0.7% growth). The Zacks Consensus Estimate for total revenues is pegged at $3.07 billion.
Teleflex now anticipates adjusted EPS from continuing operations to be in the range of $13.20 to $13.60 (down from the prior guidance of $13.95-$14.35). The Zacks Consensus Estimate for EPS is pegged at $13.78.
Teleflex exited the first quarter of 2025 with better-than-expected results, wherein both earnings and revenues beat estimates. However, the year-over-year decline in revenues was due to softness in orders in the EMEA region.
Interventional, Vascular Access and Surgical businesses performed well with single-digit adjusted constant currency growth. Within Anesthesia, endotracheal tubes and hemostatic products showed growth in the quarter, which was offset by tough military orders and pressure on airway products.
On a positive note, Teleflex has entered into a definitive agreement to acquire substantially all of the Vascular Intervention business of BIOTRONIK SE & Co. KG. With the acquisition of BIOTRONIK products, Teleflex will gain meaningful scale, expand its presence in the cath lab and be poised for continued growth. The product portfolio includes a broad suite of vascular intervention devices such as drug-coated balloons, drug-eluting stents, covered stents balloon and self-expanding bare metal stents and balloon catheters.
On the flip side, a contraction of the adjusted gross margin does not bode well for the stock. Also, the company’s lowered 2025 adjusted EPS guidance adds to the worry.
Teleflex currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Veeva Systems VEEV and Masimo MASI.
AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter fiscal 2025 adjusted EPS of 3 cents, which beat the Zacks Consensus Estimate of a loss of 13 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Revenues of $72 million beat the Zacks Consensus Estimate by 2%. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 70.9%.
Veeva Systems, sporting a Zacks Rank #1 at present, posted fourth-quarter fiscal 2025 adjusted EPS of $1.75, which exceeded the Zacks Consensus Estimate by 10.1%. Revenues of $720.9 million surpassed the Zacks Consensus Estimate by 3.2%.
VEEV has an estimated long-term earnings growth rate of 26.6% compared with the industry’s 20.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.9%.
Masimo, currently sporting a Zacks Rank #1, reported fourth-quarter 2024 adjusted EPS of $1.80, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $600.7 million topped the Zacks Consensus Estimate by 0.8%.
MASI has an estimated earnings yield of 3.5% for fiscal 2025 compared with the industry’s 3.6%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.4%.
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This article originally published on Zacks Investment Research (zacks.com).
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