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Teleflex Incorporated (TFX - Snapshot Report) has been recently awarded a supply agreement by Irving, Texas based leading health care supply chain expertise, analytics and contracting services organization Novation that sent the stock to new 52-week high of $95.62 on Nov 14.

Under the agreement, TFX will provide its complete lineup of Arrow Intra-Aortic Balloon Catheters and WAVE Intra-Aortic Balloon Pumps to more than 65,000 members served by Novation, effective Jan 1, 2014.

Teleflex’s balloon catheters offer advanced features such as reinforced catheter body to reduce the risk of kinking. On other hand, its balloon pump technology comes with the proprietary wave algorithm, which detects the aortic valve closure point for each heartbeat, even during severe arrhythmia.

Recently, TFX revealed that its ISO-Gard Mask with ClearAir Technology will be used for the first time by the Community Surgery Center North healthcare facility – part of Indianapolis, Indiana-based Community Health Network. The ISO-Gard Mask has been developed to protect nursing staffs in the Post Anesthesia Care Unit against harmful waste anesthetic gas.

For the third quarter of 2013, Teleflex posted a 26.7% rise in adjusted earnings to $1.33 per share from $1.05 in the same quarter of 2012. With this, earnings significantly beat the Zacks Consensus Estimate of $1.14. Net earnings surged 29.3% to $55.6 million from $43.0 million in the year-ago quarter.  

Net revenues went up 12.4% to $413.8 million, exceeding the Zacks Consensus Estimate of $410 million. Excluding foreign exchange fluctuations, net revenues rose 11.6% from the prior-year quarter.

The increase in revenues was attributable to continued strength in Critical Care, owing to the contribution from the acquisition of LMA International in October 2012, higher average selling price of products, and the non-stop introduction of new products.

For 2013, TFX anticipates constant currency revenue growth between 8.5% and 10%, down from the earlier guidance of 10% to 12%. The lower revenue guidance was driven by weaknesses with respect to sales of its OEM and respiratory therapy products.

Teleflex expect weaknesses in those product lines to continue in the fourth quarter as well. In the fourth quarter, TFX also expects lower revenue in Asia due to the timing of certain distributor negotiations which are progressing slower than initially planned.

However, Teleflex upgraded its adjusted earnings per share guidance due to its continued cost reduction efforts. The company expects adjusted earnings per share in the range of $4.85 to $5.00 compared with the prior outlook of $4.70–$4.90. The current Zacks Consensus Estimate of $4.94 lies within the guided range.

Currently, TFX retains a Zacks Rank #3 (Hold). While TFX remain on the sidelines, stocks that are performing well in the medical instruments industry include Cynosure, Inc. (CYNO - Snapshot Report), CryoLife, Inc. (CRY - Snapshot Report) and Natus Medical Inc. (BABY - Snapshot Report). All of them carry a Zacks Rank #1 (Strong Buy).

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