Teleflex Incorporated (TFX - Free Report) announced earnings per share (EPS) from continuing operations of $2.77 for the fourth quarter of 2018, up 13.5% year over year. However, the bottom line missed the Zacks Consensus Estimate by a penny.
For the full year, adjusted earnings came in at $9.90 per share, a 17.9% increase on a year-over-year basis.
Net revenues in the fourth quarter rose 7.8% year over year to $641.6 million. Excluding the impact of currency fluctuations, fourth-quarter net revenues increased 9.4% year over year.
On a year-over-year basis, the company saw organic constant currency revenue growth of 9.1%. This includes the benefit of NeoTract becoming organic in the fourth quarter combined with strong growth from legacy product families.
The company registered revenues of $2.44 million in 2018, up 14.1% (up 12.95 at constant exchange rate or CER) from the year-ago period.
Revenues in Detail
In the fourth quarter, Teleflex’s Vascular North America segment recognized net revenues of $85.7 million, up 6.3% year over year at CER. The company registered strong growth in PICC (Peripherally Inserted Central Catheters), visual navigation products and EZ-IO.
The Interventional North America business registered net revenues of $69.7 million, a 13.3% rise on a year-over-year basis at CER. This upside was fueled by higher sales of Vascular Solutions products as well as growth in OnControl.
Within Anesthesia North America, net revenues climbed 4.8% at CER to $53.2 million. Growth in sales volumes of existing products and stronger new product sales during the fourth quarter were partially offset by price declines.
Surgical North America realized net revenues of $50.8 million, a 2.1% rise at CER on increased sales of airway and EZ-IO products.
Meanwhile, EMEA recorded revenue growth of 8.2% at CER to $150.9 million, driven by distributor convergence as well as increased sales of vascular access products.
Asia, OEM and All Other logged net revenues of $79.8 million, $52.7 million and $109.6 million, respectively (corresponding top-line growth of 5.5%, 15.4% and 21.4% each at CER), in the quarter under review.
Gross margin of 57% in the quarter under discussion was up 144 basis points (bps) year over year on 10.6% improvement in gross profits to $365.8 million. Adjusted operating margin expanded 317 bps to 18.6% on 29.9% rise in operating profit to $119.5 million.
The company exited 2018 with cash and cash equivalents of $357.2 million compared with $333.6 million at the end of 2017. Full year, net cash provided by operating activities was $435.1 million compared with $426.3 million in the year-ago period.
Teleflex has provided its 2019 guidance. Revenues are expected to increase in the band of 5% to 6% from the year-ago period.This reflects an 1% unfavorable impact of foreign exchange translation.
The company forecasts full-year adjusted earnings per share from continuing operations in the $10.90-$11.10 band, representing an increase of 10.1% to 12.1% over 2018 and reflecting a 2% negative impact from foreign exchange translation.
Notably Teleflex continues to report a robust improvement in revenues, banking on balanced growth across all segments and geographies. The company’s newly-acquired NeoTract has started to contribute to its top line quite handsomely. We are also upbeat about Urolift that maintained its sturdy momentum in the fourth quarter, delivering $49 million in revenues, an approximate 45% increase from the prior-year period.
Zacks Rank & Key Picks
Teleflex currently carries a Zacks Rank #3 (Hold). A few better-ranked medical stocks are Abbott Laboratories (ABT - Free Report) , AngioDynamics Inc. (ANGO - Free Report) and CONMED, Corp. (CNMD - Free Report) .
Abbott reported fourth-quarter 2018 adjusted EPS of 81 cents, in line with the Zacks Consensus Estimate. Revenues of $7.77 billion were below the Zacks Consensus Estimate of $7.79 billion. The stock has a Zacks Rank #2 (Buy).
AngioDynamics’ fiscal second-quarter adjusted EPS of 22 cents exceeded the Zacks Consensus Estimate by a penny. Revenues totaled $91.5 million, beating the consensus estimate by 2.9%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CONMED delivered fourth-quarter adjusted EPS of 73 cents, in line with the Zacks Consensus Estimate. Revenues of $242.4 million beat the Zacks Consensus Estimate of $229.2 million. The stock carries a Zacks Rank of 2.
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