Teleflex Incorporated (TFX - Free Report) reported earnings per share (EPS) from continuing operations of $2.66 for the second quarter of 2019, up 7.7% year over year. The bottom line also surpassed the Zacks Consensus Estimate by 2.7%.
Reported EPS came in at $1.77 against a loss of 6 cents in the prior-year quarter.
Net revenues from continuing operations in the second quarter rose 7% year over year to $652.5 million. On a year-over-year basis, the company saw organic constant currency revenue growth of 9.6%. The top line surpassed the Zacks Consensus Estimate by 2.5%.
Revenues in Detail
In the second quarter, the Vascular Access segment recognized net revenues of $153.6 million, up 12% year over year at CER. The company registered strong growth in PICC (Peripherally Inserted Central Catheters), CVCs and EZ-IO.
The Interventional business registered net revenues of $104.8 million, reflecting an 8.8% rise on a year-over-year basis at CER. This upside was backed by higher sales of complex catheters, biologics on-control and intra-aortic balloon products.
Within the Anesthesia segment, net revenues declined 0.9% at CER to $85.7 million primarily due to sluggish sales of airway and pain management products.
Surgical segment recorded net revenues of $95.6 million, reflecting a 9% rise at CER on increased sales of ligation clips and surgical instruments.
Revenues at the Interventional Urology segment saw growth of 42.7% at CER to $67.9 million. The segment of OEM products recorded net revenues of $56.4 million, showing an 8.5% rise at CER.
Meanwhile, EMEA recorded revenue growth of 1.9% at CER to $147.1 million, driven by increased sales of Vascular Access and Interventional Access products.
Asia, OEM and Americas registered net revenues of $75.2 million, $56.4 million and $373.8 million, respectively (corresponding top-line growth of 10%, 8.5% and 13.1% each at CER), in the quarter under review.
Gross margin of 57.2% in the quarter under discussion expanded 62 basis points (bps) year over year on an 8.2% improvement in gross profits to $372.9 million. Adjusted operating margin expanded 216 bps to 16.7% on a 3.1% rise in operating expenses to $263.8 million.
The company exited the second quarter of 2019 with cash and cash equivalents of $303.9 million compared with $271.2 million at the end of the first quarter. Year-to-date net cash provided by operating activities was $157.3 million compared with $181.6 million a year ago.
Teleflex has raised its 2019 revenue guidance. Revenues are expected to increase 6-6.5% compared to the earlier projection of 5% to 6%. This reflects an 1.5% unfavorable impact of foreign exchange translation. Moreover, the company raised its 2019 revenue guidance on a constant currency basis to a range of 7.5%-8%, from earlier-projected range of 6-7%. The Zacks Consensus Estimate for revenues is pegged at $2.59 billion.
The company reaffirms full-year adjusted earnings per share from continuing operations at the $10.90-$11.10 band, suggesting an increase of 10.1% to 12.1% over 2018 and indicating a 3.5% negative impact from foreign exchange translation. The Zacks Consensus Estimate for the same is pegged at $11.06, near the high end of the company’s guided range.
Teleflex exited the second quarter of 2019 on a solid note. We are encouraged by the company’s robust improvement in revenues on balanced growth across majority of segments and all geographies. The continued Urolift momentum in the second quarter is impressive. Expansion of both margins also buoys optimism. A raised revenue guidance is an added positive.
Zacks Rank & Other Key Picks
Teleflex has a Zacks Rank #2 (Buy).
Some other top-ranked companies, which posted solid results this earnings season, are Stryker Corp. (SYK - Free Report) , Baxter International Inc. (BAX - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Stryker delivered second-quarter 2019 adjusted EPS of $1.98, beating the Zacks Consensus Estimate by 2.6%. Revenues of $3.65 billion surpassed the Zacks Consensus Estimate by 1.4%. The company carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Baxter delivered second-quarter 2019 adjusted EPS of 89 cents, which surpassed the Zacks Consensus Estimate of 81 cents by 9.9%. Revenues of $2.84 billion beat the Zacks Consensus Estimate of $2.79 billion by 1.9%. The company holds a Zacks Rank #2.
Intuitive Surgical reported second-quarter 2019 adjusted EPS of $3.25, which beat the Zacks Consensus Estimate of $2.85. Revenues were $1.1 billion, surpassing the Zacks Consensus Estimate of $1.03 billion. The company sports a Zacks Rank #1.
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