Teleflex’s (TFX Quick QuoteTFX - Free Report) broad Vascular Access portfolio is poised to continue to win shares through its category leadership in Central Venous Catheters (CVC), midlines and new launches. The company’s expansion efforts into Asia bring promising long-term growth prospects. The Interventional arm is also driving solid growth through its key drivers, which is highly promising.  Meanwhile, the adverse impact of macroeconomic challenges and the competitive landscape remains a concern for Teleflex.

In the past year, this Zacks Rank #3 (Hold) stock has declined 29% against the industry’s 4.2% growth and the S&P 500 composite’s 25.5% rise.

The global provider of medical technologies has a market capitalization of $8.27 billion. TFX surpassed estimates in each of the trailing four quarters, delivering an average earnings surprise of 3.55%. 

Let’s delve deeper.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Tailwinds for Teleflex

Vascular Business Grows: Teleflex’s Vascular Access product line is witnessing consistent market share gains by offering advanced devices that facilitate a variety of critical care therapies and other applications with a focus on helping reduce vascular-related complications. Over the long term, TFX remains positioned for dependable growth with category leadership in CVC and midlines, anticipated share gains with the novel coated PICC (Peripherally Inserted Central Catheters) portfolio and new product introductions. In the third quarter, revenues increased 6.3% year over year, led by the underlying growth in its PICC portfolio and Central Access. As anticipated, global PICC revenues increased by double digits asTeleflex continued to execute its strategy to expand the usage of its products.

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Business in Asia Holds Long-Term Potential: Observing strong demand for the company’s wide product line in emerging economies, Teleflex is currently focusing on expansion in densely populated geographies like Asia. The company has a solid market base for its Interventional Access and Anesthesia products in this region. In the third quarter, the revenue growth rate was affected by the softer performance in South Korea due to the ongoing impact of the doctor strike, but it still delivered a 5% increase compared to the last year. While the challenges from the ongoing doctors’ strike headwinds are likely to persist throughout the year, the impact is expected to diminish. Our model forecast implies 8% CAGR growth in the region’s revenues through 2026.

Strong Momentum in Interventional: The wide range of devices in the Interventional product category, including coronary catheters, structural heart support devices and peripheral intervention products, are designed to diagnose and deliver treatment of coronary and peripheral vascular disease. The segment generated 11.4% revenue growth in the third quarter of 2024, including contributions from growth drivers such as MANTA, complex catheters, right heart catheters and intra-aortic balloon pumps.

Factors Affecting Teleflex

Macroeconomic Challenges: Teleflex is exposed to risks from adverse economic changes in the United States and internationally. In the third quarter of 2024, sales in Asia were primarily impacted by the continued soft performance in South Korea due to the ongoing impact of the doctor strike. Looking forward, the doctor-strike-led headwinds are likely to linger through the rest of 2024. The company has also been facing substantial cost pressures due to global macroeconomic factors, particularly in materials and services, and is closely monitoring the impacts of rising interest rates and the ongoing geopolitical conflicts on its operations.

Competitive Landscape Tough: Teleflex competes with companies ranging from small start-up enterprises to larger and more established companies that have access to significantly greater financial resources. Furthermore, extensive product research and development and rapid technological advances characterize the market in which it competes. Teleflex competes primarily based on clinical superiority and innovative features that enhance patient benefit, product reliability, performance, customer and sales support and cost-effectiveness.

TFX Stock Estimate Trend

The Zacks Consensus Estimate for TFX’s 2024 earnings per share (EPS) has moved down 1 cent to $13.98 in the past 30 days.

The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $3.08 billion. This suggests a 3.5% rise from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Haemonetics (HAE Quick QuoteHAE - Free Report) , Boston Scientific (BSX Quick QuoteBSX - Free Report) and Phibro Animal Health (PAHC Quick QuotePAHC - Free Report) .

Haemonetics has an earnings yield of 5.59% compared with the industry’s 1.35%. Haemonetics’ earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 2.82%. Its shares have fallen 11% against the industry’s 13.3% growth in the past year.

HAE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific, carrying a Zacks Rank #2 at present, has a long-term estimated earnings growth rate of 13.8%. Shares of the company have surged 58.3% compared with the industry’s 13.4% growth. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.29%.

Phibro Animal Health, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 36.1% for fiscal 2025 compared with the industry’s 11.6%. Shares of the company have surged 88.4% compared with the industry’s 13.4% growth over the past year. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 25.47%.