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TeleFlex (TFX) Organic Sales Hit by COVID-19, Urolift Grows
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On Feb 12, 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 #4 (Sell).
Over the past six months, Teleflex’s stock has underperformed its industry. The stock has gained 6.4% compared with the industry's 10.8% growth.
The company is registering segmental revenue decline organically owing to the negative impact of COVID-19. Escalating costs and expenses are a concern. Teleflex is currently unable to ascertain the scope and duration of the pandemic as well as quantify the actual impact. The company also anticipates material disruption due to the COVID-19 pandemic.
In the last-reported third quarter of 2020, most of the segments registered revenue decline organically on a 12% aggregated negative impact from 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. Within Surgical, revenues declined due to lower sales at its ligation portfolio and instruments. Further, cancellation of elective procedures impacted the Interventional Urology line in the third quarter.
During the third-quarter earnings call, the company had apprehended further adverse financial impact of the coronavirus pandemic on its fourth-quarter earnings, which are scheduled to be released on Feb 25.
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.
Key Picks
Some better-ranked stocks from the broader medical space are Hologic, Inc. (HOLX - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Abbott Laboratories (ABT - Free Report) .
IDEXX’s long-term earnings growth rate is estimated at 15.8%. It currently carries a Zacks Rank #2 (Buy).
Abbott’s long-term earnings growth rate is estimated at 14.1%. The company presently carries a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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TeleFlex (TFX) Organic Sales Hit by COVID-19, Urolift Grows
On Feb 12, 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 #4 (Sell).
Over the past six months, Teleflex’s stock has underperformed its industry. The stock has gained 6.4% compared with the industry's 10.8% growth.
The company is registering segmental revenue decline organically owing to the negative impact of COVID-19. Escalating costs and expenses are a concern. Teleflex is currently unable to ascertain the scope and duration of the pandemic as well as quantify the actual impact. The company also anticipates material disruption due to the COVID-19 pandemic.
In the last-reported third quarter of 2020, most of the segments registered revenue decline organically on a 12% aggregated negative impact from 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. Within Surgical, revenues declined due to lower sales at its ligation portfolio and instruments. Further, cancellation of elective procedures impacted the Interventional Urology line in the third quarter.
During the third-quarter earnings call, the company had apprehended further adverse financial impact of the coronavirus pandemic on its fourth-quarter earnings, which are scheduled to be released on Feb 25.
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.
Teleflex Incorporated Price
Teleflex Incorporated price | Teleflex Incorporated Quote
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.
Key Picks
Some better-ranked stocks from the broader medical space are Hologic, Inc. (HOLX - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Abbott Laboratories (ABT - Free Report) .
Hologic’s long-term earnings growth rate is estimated at 15.4%. The company presently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IDEXX’s long-term earnings growth rate is estimated at 15.8%. It currently carries a Zacks Rank #2 (Buy).
Abbott’s long-term earnings growth rate is estimated at 14.1%. The company presently carries a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>