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Teleflex (TFX) Beats on Q1 Earnings and Revenues, Raises View
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Teleflex Incorporated’s (TFX - Free Report) adjusted earnings per share (EPS) from continuing operations of $2.87 for the first quarter of 2021 were up 5.5% year over year. The bottom line surpassed the Zacks Consensus Estimate by 17.6%.
GAAP EPS for the first quarter was $1.58, reflecting a 43.2% plunge from the year-ago $2.78.
Revenues in Detail
Net revenues in the first quarter rose 0.5% year over year to $633.9 million but declined 2.6% on a constant exchange rate or CER. The top line surpassed the Zacks Consensus Estimate by 2%.
Americas registered net revenues of $375.5 million, an increase of 4.7% year over year at CER. The acquisition of Z-Medica, LLC and an increase in sales of new products contributed to the revenue growth. However this was partially offset by a net decrease in sales volumes of existing products caused by the pandemic.
Teleflex Incorporated Price, Consensus and EPS Surprise
EMEA net revenues of $141.2 million dropped 16.9% at CER due to a net decrease in sales volumes of existing products caused by the COVID-19 pandemic.
Revenues in Asia registered an increase of 10.3% at CER to $63.7 million primarily attributable to increased sales of new products and increased sales volumes of existing products.
Segmental Revenues
In the first quarter, the Vascular Access segment reported net revenues of $164 million, up 5.8% year over year at CER. The Interventional business registered net revenues of $96.2 million, down 6.4% on a year-over-year basis at CER.
Within the Anesthesia segment, net revenues improved 7% to $84.9 million. The Surgical segment recorded net revenues of $80.4 million, reflecting 2.3% rise at CER. Revenues of $73.4 million in the Interventional Urology segment declined 1.3% on a year-over-year basis at CER.
Meanwhile, OEM recorded revenue growth of $53.5 million, down 17.1%. The Other product segment (consisting of the company’s respiratory and urology care products) registered net revenues of $81.7 million, down 15.3% at CER.
Margins
In the reported quarter, gross profit totaled $344.5 million, up 3.3% year over year. Gross margin expanded 145 basis points (bps) to 54.3%.
Overall adjusted operating loss was $61.8 million against adjusted operating profit of $38 million in the year-ago period.
Liquidity Position
Teleflex exited the first quarter of 2021 with cash and cash equivalents of $324.6 million, down from $375.9 million at the end of fourth quarter of 2020.
Cumulative cash flow provided by operating activities from continuing operations at the end of the first quarter was $110.8 million compared with operating cash outflow of $11.5 million in the year-ago period.
2021 View
Teleflex has raised its financial guidance for 2021 revenues and adjusted earnings.
Revenue growth for 2021 is expected to be in the range of 10.5-11.75% (up 8.5-9.75% at CER). This compares to the earlier guidance of revenue growth expectation of 10-11.5% (up 8-9.5% at CER). The current Zcks Consensus Estimate remains at $2.81 billion.
The company currently projects its adjusted EPS from continuing operations for 2021 to be between $12.65 and $12.85 (earlier expectation was $12.50-$12.70). The Zacks Consensus Estimate for the same is currently pegged at $12.63.
Our Take
Teleflex reported better-than-expected first-quarter results. Geographically, the company’s performance was strong in the Americas (driven by strong sales of Vascular Access and respiratory products, both of which saw coronavirus-led elevated demand) and Asia banking on improving sales volume. The raised guidance for 2021 buoys optimism.
However, continued operating loss is a major concern.
Zacks Rank and Key Picks
Teleflex currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space include Semler Scientific Inc. , Owens & Minor, Inc. (OMI - Free Report) and DENTSPLY SIRONA Inc. (XRAY - Free Report) .
Semler is expected to release results on May 3. The Zacks Consensus Estimate for the company’s first-quarter 2021 adjusted EPS is currently pegged at 48 cents. The consensus mark for first-quarter revenues stands at $11.9 million. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Owens & Minor is scheduled to release results on May 5. The Zacks Consensus Estimate for its first-quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion. The company currently carries a Zacks Rank #2 (Buy).
DENTSPLY SIRONA is slated to release results on May 6. The Zacks Consensus Estimate for first-quarter 2021 adjusted EPS is currently pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million. The company currently carries a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Teleflex (TFX) Beats on Q1 Earnings and Revenues, Raises View
Teleflex Incorporated’s (TFX - Free Report) adjusted earnings per share (EPS) from continuing operations of $2.87 for the first quarter of 2021 were up 5.5% year over year. The bottom line surpassed the Zacks Consensus Estimate by 17.6%.
GAAP EPS for the first quarter was $1.58, reflecting a 43.2% plunge from the year-ago $2.78.
Revenues in Detail
Net revenues in the first quarter rose 0.5% year over year to $633.9 million but declined 2.6% on a constant exchange rate or CER. The top line surpassed the Zacks Consensus Estimate by 2%.
Americas registered net revenues of $375.5 million, an increase of 4.7% year over year at CER. The acquisition of Z-Medica, LLC and an increase in sales of new products contributed to the revenue growth. However this was partially offset by a net decrease in sales volumes of existing products caused by the pandemic.
Teleflex Incorporated Price, Consensus and EPS Surprise
Teleflex Incorporated price-consensus-eps-surprise-chart | Teleflex Incorporated Quote
EMEA net revenues of $141.2 million dropped 16.9% at CER due to a net decrease in sales volumes of existing products caused by the COVID-19 pandemic.
Revenues in Asia registered an increase of 10.3% at CER to $63.7 million primarily attributable to increased sales of new products and increased sales volumes of existing products.
Segmental Revenues
In the first quarter, the Vascular Access segment reported net revenues of $164 million, up 5.8% year over year at CER. The Interventional business registered net revenues of $96.2 million, down 6.4% on a year-over-year basis at CER.
Within the Anesthesia segment, net revenues improved 7% to $84.9 million. The Surgical segment recorded net revenues of $80.4 million, reflecting 2.3% rise at CER. Revenues of $73.4 million in the Interventional Urology segment declined 1.3% on a year-over-year basis at CER.
Meanwhile, OEM recorded revenue growth of $53.5 million, down 17.1%. The Other product segment (consisting of the company’s respiratory and urology care products) registered net revenues of $81.7 million, down 15.3% at CER.
Margins
In the reported quarter, gross profit totaled $344.5 million, up 3.3% year over year. Gross margin expanded 145 basis points (bps) to 54.3%.
Overall adjusted operating loss was $61.8 million against adjusted operating profit of $38 million in the year-ago period.
Liquidity Position
Teleflex exited the first quarter of 2021 with cash and cash equivalents of $324.6 million, down from $375.9 million at the end of fourth quarter of 2020.
Cumulative cash flow provided by operating activities from continuing operations at the end of the first quarter was $110.8 million compared with operating cash outflow of $11.5 million in the year-ago period.
2021 View
Teleflex has raised its financial guidance for 2021 revenues and adjusted earnings.
Revenue growth for 2021 is expected to be in the range of 10.5-11.75% (up 8.5-9.75% at CER). This compares to the earlier guidance of revenue growth expectation of 10-11.5% (up 8-9.5% at CER). The current Zcks Consensus Estimate remains at $2.81 billion.
The company currently projects its adjusted EPS from continuing operations for 2021 to be between $12.65 and $12.85 (earlier expectation was $12.50-$12.70). The Zacks Consensus Estimate for the same is currently pegged at $12.63.
Our Take
Teleflex reported better-than-expected first-quarter results. Geographically, the company’s performance was strong in the Americas (driven by strong sales of Vascular Access and respiratory products, both of which saw coronavirus-led elevated demand) and Asia banking on improving sales volume. The raised guidance for 2021 buoys optimism.
However, continued operating loss is a major concern.
Zacks Rank and Key Picks
Teleflex currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space include Semler Scientific Inc. , Owens & Minor, Inc. (OMI - Free Report) and DENTSPLY SIRONA Inc. (XRAY - Free Report) .
Semler is expected to release results on May 3. The Zacks Consensus Estimate for the company’s first-quarter 2021 adjusted EPS is currently pegged at 48 cents. The consensus mark for first-quarter revenues stands at $11.9 million. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Owens & Minor is scheduled to release results on May 5. The Zacks Consensus Estimate for its first-quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion. The company currently carries a Zacks Rank #2 (Buy).
DENTSPLY SIRONA is slated to release results on May 6. The Zacks Consensus Estimate for first-quarter 2021 adjusted EPS is currently pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million. The company currently carries a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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