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Teleflex Incorporated (TFX - Free Report) posted adjusted earnings per share (EPS) from continuing operations of $3.21 for the first quarter of 2024, up 3.9% from the year-ago quarter’s figure. The metric topped the Zacks Consensus Estimate by 4.6%.
GAAP EPS came in at 33 cents in the first quarter compared with $1.63 during the same period last year.
Revenues in Detail
Net revenues in the first quarter rose 3.8% year over year (same atconstant exchange rate or CER) to $737.8 million. The top line surpassed the Zacks Consensus Estimate by 1.5%.
Segmental Details
Americas’ net revenues of $406.3 million decreased 1.4% from the year-ago period’s levels (down 1.5% at CER). This compares with our model’s projection of $440.5 million for the first quarter. The decrease was mainly due to a tough year-over-year comparison, as in the prior-year quarter, MSA revenues were booked in the Americas.
EMEA’s (Europe, the Middle East and Africa) net revenues of $159.6 million rose 11.4% year over year (up 9.7% at CER). Growth was seen across the majority of the company’s product families, including solid double-digit growth contributions from interventional and interventional urology. Our model projected revenues to be $160.7 million in the first quarter.
Revenues from Asia (Asia Pacific) rose 7% to $84.2 million (up 11.2% at CER). Our model’s projection was $81.3 million. Revenue growth was broad-based across the region, with double-digit increases in China, India and Southeast Asia.
OEM (Original Equipment Manufacturer and Development Services) revenues were $87.7 million, an increase of 13.9% year over year (up 13.9% at CER).
Teleflex Incorporated Price, Consensus and EPS Surprise
In the first quarter, the Vascular Access segment recorded net revenues of $181.4 million, up 2% year over year at CER. This compares with our model’s projection of $190 million for the first quarter.
The Interventional business registered net revenues of $134.7 million, up 15.4% at CER from the same period last year. This compares with our model’s projection of $123.1 million for the first quarter.
Within the Anesthesia segment, net revenues increased 3.2% year over year at CER to $96.4 million. This compares with our model’s projection of $93.2 million for the first quarter.
The Surgical segment recorded net revenues of $105.5 million, up 7.1% year over year at CER. This compares with our model’s projection of $99.7 million for the fourth quarter.
Revenues from the Interventional Urology segment were $79.7 million, up 6.1% year over year. This compares with our model’s projection of $84.3 million for the first quarter.
OEM recorded revenue growth of $87.7 million, up 13.6% from the year-ago figure. This compares with our model’s projection of $82.8 million for the first quarter.
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 $52.4 million registered a year-over-year decline of 27.1%. This compares with our model’s projection of $53.1 million for the first quarter.
Margins
In the reported quarter, gross profit totaled $416.1 million, up 6.3% year over year. The gross margin expanded 135 basis points (bps) to 56.4% despite a 0.7% rise in the cost of goods sold.
Overall, adjusted operating profit was $136 million, up 16.1% year over year. The adjusted operating margin saw a 195-bp expansion year over year to 18.4%.
Liquidity Position
Teleflex exited the first quarter of 2024 with cash and cash equivalents of $237.4 million, compared with $222.8 million at the end of 2023.
Cumulative cash flow provided by operating activities from continuing operations at the end of the first quarter of 2024 was $112.8 million compared with $84.3 million in the year-ago period.
2024 View
Teleflex updated its financial guidance for 2024.
GAAP revenue growth for 2024 is expected in the range of 3.35%-4.35% compared with the earlier range of 3.6%-4.6%. The company’s constant currency revenue growth expectation for 2024 has been reiterated in the 3.75%-4.75% range. The Zacks Consensus Estimate for total revenues is pegged at $3.09 billion.
The company has raised the lower end of its 2024 adjusted EPS from continuing operations to a new range of $13.60-$13.95 (from the earlier band of 13.55-$13.95). The Zacks Consensus Estimate is currently pegged at $13.73.
Our Take
Teleflex exited the first quarter of 2024 with better-than-expected revenues and earnings. The company’s performance demonstrated a solid execution against a stable and improving macro environment. Across the Asia region, revenue growth was broad-based. The expansion of the gross margin instills optimism. Apart from strong product sales, EMEA also benefited from the ongoing recovery of ET tubes following the recall last year.
Teleflex has owned Palette Life Sciences for the past six months, and already, the integration process is meeting the company’s targeted milestones. In 2024, TFX anticipates new product introductions with a number of launches across its business units.
First-quarter Other revenues declined significantly, primarily due to the planned December 2023 exit of the MSA by Medline.
Zacks Rank and Key Picks
Teleflex currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Align Technology, Inc. (ALGN - Free Report) , ResMed Inc. (RMD - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Align Technology, carrying a Zacks Rank of 2 (Buy), reported adjusted EPS of $2.14 for first-quarter 2024, beating the Zacks Consensus Estimate by 8.1%. Revenues of $997.4 million outpaced the consensus mark by 2.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Align Technology has a long-term estimated growth rate of 6.9%. ALGN’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 5.9%.
ResMed reported adjusted EPS of $2.13 for third-quarter fiscal 2024, beating the Zacks Consensus Estimate by 10.9%. Revenues of $1.19 billion surpassed the Zacks Consensus Estimate by 1.9%. It currently carries a Zacks Rank #2.
ResMed has a long-term estimated growth rate of 10.9%. RMD’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.
Boston Scientific reported adjusted EPS of 56 cents for first-quarter 2024, beating the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 12.5%. BSX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 7.5%.
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Teleflex (TFX) Q1 Earnings Beat Estimates, Margins Rise
Teleflex Incorporated (TFX - Free Report) posted adjusted earnings per share (EPS) from continuing operations of $3.21 for the first quarter of 2024, up 3.9% from the year-ago quarter’s figure. The metric topped the Zacks Consensus Estimate by 4.6%.
GAAP EPS came in at 33 cents in the first quarter compared with $1.63 during the same period last year.
Revenues in Detail
Net revenues in the first quarter rose 3.8% year over year (same atconstant exchange rate or CER) to $737.8 million. The top line surpassed the Zacks Consensus Estimate by 1.5%.
Segmental Details
Americas’ net revenues of $406.3 million decreased 1.4% from the year-ago period’s levels (down 1.5% at CER). This compares with our model’s projection of $440.5 million for the first quarter. The decrease was mainly due to a tough year-over-year comparison, as in the prior-year quarter, MSA revenues were booked in the Americas.
EMEA’s (Europe, the Middle East and Africa) net revenues of $159.6 million rose 11.4% year over year (up 9.7% at CER). Growth was seen across the majority of the company’s product families, including solid double-digit growth contributions from interventional and interventional urology. Our model projected revenues to be $160.7 million in the first quarter.
Revenues from Asia (Asia Pacific) rose 7% to $84.2 million (up 11.2% at CER). Our model’s projection was $81.3 million. Revenue growth was broad-based across the region, with double-digit increases in China, India and Southeast Asia.
OEM (Original Equipment Manufacturer and Development Services) revenues were $87.7 million, an increase of 13.9% year over year (up 13.9% at CER).
Teleflex Incorporated Price, Consensus and EPS Surprise
Teleflex Incorporated price-consensus-eps-surprise-chart | Teleflex Incorporated Quote
Product Revenues in Detail
In the first quarter, the Vascular Access segment recorded net revenues of $181.4 million, up 2% year over year at CER. This compares with our model’s projection of $190 million for the first quarter.
The Interventional business registered net revenues of $134.7 million, up 15.4% at CER from the same period last year. This compares with our model’s projection of $123.1 million for the first quarter.
Within the Anesthesia segment, net revenues increased 3.2% year over year at CER to $96.4 million. This compares with our model’s projection of $93.2 million for the first quarter.
The Surgical segment recorded net revenues of $105.5 million, up 7.1% year over year at CER. This compares with our model’s projection of $99.7 million for the fourth quarter.
Revenues from the Interventional Urology segment were $79.7 million, up 6.1% year over year. This compares with our model’s projection of $84.3 million for the first quarter.
OEM recorded revenue growth of $87.7 million, up 13.6% from the year-ago figure. This compares with our model’s projection of $82.8 million for the first quarter.
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 $52.4 million registered a year-over-year decline of 27.1%. This compares with our model’s projection of $53.1 million for the first quarter.
Margins
In the reported quarter, gross profit totaled $416.1 million, up 6.3% year over year. The gross margin expanded 135 basis points (bps) to 56.4% despite a 0.7% rise in the cost of goods sold.
Overall, adjusted operating profit was $136 million, up 16.1% year over year. The adjusted operating margin saw a 195-bp expansion year over year to 18.4%.
Liquidity Position
Teleflex exited the first quarter of 2024 with cash and cash equivalents of $237.4 million, compared with $222.8 million at the end of 2023.
Cumulative cash flow provided by operating activities from continuing operations at the end of the first quarter of 2024 was $112.8 million compared with $84.3 million in the year-ago period.
2024 View
Teleflex updated its financial guidance for 2024.
GAAP revenue growth for 2024 is expected in the range of 3.35%-4.35% compared with the earlier range of 3.6%-4.6%. The company’s constant currency revenue growth expectation for 2024 has been reiterated in the 3.75%-4.75% range. The Zacks Consensus Estimate for total revenues is pegged at $3.09 billion.
The company has raised the lower end of its 2024 adjusted EPS from continuing operations to a new range of $13.60-$13.95 (from the earlier band of 13.55-$13.95). The Zacks Consensus Estimate is currently pegged at $13.73.
Our Take
Teleflex exited the first quarter of 2024 with better-than-expected revenues and earnings. The company’s performance demonstrated a solid execution against a stable and improving macro environment. Across the Asia region, revenue growth was broad-based. The expansion of the gross margin instills optimism. Apart from strong product sales, EMEA also benefited from the ongoing recovery of ET tubes following the recall last year.
Teleflex has owned Palette Life Sciences for the past six months, and already, the integration process is meeting the company’s targeted milestones. In 2024, TFX anticipates new product introductions with a number of launches across its business units.
First-quarter Other revenues declined significantly, primarily due to the planned December 2023 exit of the MSA by Medline.
Zacks Rank and Key Picks
Teleflex currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Align Technology, Inc. (ALGN - Free Report) , ResMed Inc. (RMD - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Align Technology, carrying a Zacks Rank of 2 (Buy), reported adjusted EPS of $2.14 for first-quarter 2024, beating the Zacks Consensus Estimate by 8.1%. Revenues of $997.4 million outpaced the consensus mark by 2.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Align Technology has a long-term estimated growth rate of 6.9%. ALGN’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 5.9%.
ResMed reported adjusted EPS of $2.13 for third-quarter fiscal 2024, beating the Zacks Consensus Estimate by 10.9%. Revenues of $1.19 billion surpassed the Zacks Consensus Estimate by 1.9%. It currently carries a Zacks Rank #2.
ResMed has a long-term estimated growth rate of 10.9%. RMD’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.
Boston Scientific reported adjusted EPS of 56 cents for first-quarter 2024, beating the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 12.5%. BSX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 7.5%.