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TeleFlex Banks on Urolift Sales Amid Coronavirus-Led Debacle
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On Aug 21, we issued an updated research report on Teleflex Incorporated (TFX - Free Report) . The company has been witnessing a solid uptick in revenues, driven by sturdy performance across the majority of segments and geographies. However, escalating costs and expenses remain a major cause of worry. The stock currently carries a Zacks Rank #3 (Hold).
Over the past six months, Teleflex’s stock has underperformed its industry. The stock has gained 2.5% compared with the industry's 15.5% growth.
In the second quarter of 2020, on a year-over year basis, earnings and sales both declined significantly. Most of the segments registered organic revenue decline on a 20% aggregated negative impact of COVID-19. The company’s Asia business experienced a revenue decline due to COVID-19.
The Interventional business revenues were hampered due to the cancellation of certain non-emergent procedures whereas Anesthesia segment saw lower sales of laryngeal masks and certain regional Anesthesia products. Shutdown of one of the company’s third-party sterilization providers during the quarter was also concerning. This time too the company did not provide its 2020 guidance.
On a positive note, underlying business, without considering the pandemic impact, grew approximately 8% at CER. Growth within the Americas was driven by strong sales of Vascular Access and respiratory products, both of which saw coronavirus-led elevated demand.
NeoTract, the acquired business of Teleflex, has been performing impressively lately. This has prompted Teleflex to pay a higher level of contingent consideration than previously planned. Notably, UroLift System is a minimally invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia.
In the second quarter, Urolift sales were down but there was a gradual improvement in the monthly sales trend. From April’s 80% dip, in May, the decline was just 30%.
Stocks to Consider
Some better-ranked stocks from the broader medical space are QIAGEN N.V. (QGEN - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Hologic, Inc. (HOLX - Free Report) .
Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
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Image: Bigstock
TeleFlex Banks on Urolift Sales Amid Coronavirus-Led Debacle
On Aug 21, we issued an updated research report on Teleflex Incorporated (TFX - Free Report) . The company has been witnessing a solid uptick in revenues, driven by sturdy performance across the majority of segments and geographies. However, escalating costs and expenses remain a major cause of worry. The stock currently carries a Zacks Rank #3 (Hold).
Over the past six months, Teleflex’s stock has underperformed its industry. The stock has gained 2.5% compared with the industry's 15.5% growth.
In the second quarter of 2020, on a year-over year basis, earnings and sales both declined significantly. Most of the segments registered organic revenue decline on a 20% aggregated negative impact of COVID-19. The company’s Asia business experienced a revenue decline due to COVID-19.
The Interventional business revenues were hampered due to the cancellation of certain non-emergent procedures whereas Anesthesia segment saw lower sales of laryngeal masks and certain regional Anesthesia products. Shutdown of one of the company’s third-party sterilization providers during the quarter was also concerning. This time too the company did not provide its 2020 guidance.
Teleflex Incorporated Price
Teleflex Incorporated price | Teleflex Incorporated Quote
On a positive note, underlying business, without considering the pandemic impact, grew approximately 8% at CER. Growth within the Americas was driven by strong sales of Vascular Access and respiratory products, both of which saw coronavirus-led elevated demand.
NeoTract, the acquired business of Teleflex, has been performing impressively lately. This has prompted Teleflex to pay a higher level of contingent consideration than previously planned. Notably, UroLift System is a minimally invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia.
In the second quarter, Urolift sales were down but there was a gradual improvement in the monthly sales trend. From April’s 80% dip, in May, the decline was just 30%.
Stocks to Consider
Some better-ranked stocks from the broader medical space are QIAGEN N.V. (QGEN - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Hologic, Inc. (HOLX - Free Report) .
QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently sports a Zacks Rank #1. (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>