Teleflex Incorporated (TFX - Free Report) reported earnings per share (EPS) from continuing operations of $2.97 for the third quarter of 2019, up 17.9% year over year. The bottom line also surpassed the Zacks Consensus Estimate by 8%.
Reported EPS came in at $4.85, compared with $1.21 in the prior-year quarter.
Net revenues from continuing operations in the third quarter rose 6.3% year over year to $648.3 million. On a year-over-year basis, the company saw organic constant currency revenue growth of 8%. The top line surpassed the Zacks Consensus Estimate by 0.8%.
Revenues in Detail
In the third quarter, the Vascular Access segment recognized net revenues of $148.7 million, up 6.1% year over year at CER. The company registered strong growth in PICC (Peripherally Inserted Central Catheters), CVC-s (Central Venous Catheter).
The Interventional Access business registered net revenues of $106.9 million, reflecting an 8.2% 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 rose 1.5% at CER to $87.1 million, primarily driven by sales of endotracheal tubes, atomization and laryngoscope products.
Surgical segment recorded net revenues of $92.6 million, reflecting a 5% rise at CER on increased sales of ligation clips and surgical instruments.
Revenues at the Interventional Urology segment saw growth of 50.4% at CER to $73.6 million.
Meanwhile, EMEA recorded revenue growth of 5.1% at CER to $140.5 million, driven by increased sales of Vascular Access and Interventional Access products.
Asia, OEM and Americas registered net revenues of $140.5 million, $55.4 million and $374.5 million, respectively (corresponding top-line growth of 5%, 1.9% and 10.7% each at CER), in the quarter under review.
Gross margin of 57.9% in the quarter under discussion expanded 176 basis points (bps) year over year on a 9.7% improvement in gross profit to $375.7 million. Adjusted operating loss for the third quarter came in at $63.8 million compared with loss of $66.1 million in the prior-year quarter.
The company exited the third quarter of 2019 with cash and cash equivalents of $257.5 million compared with $303.9 million at the end of the second quarter. Year-to-date net cash provided by operating activities from continuing operations was $289.2 million compared with $302.9 million a year ago.
On a GAAP basis, the company lowered its 2019 revenue guidance to 5.75-6.0% over the prior year (earlier prediction was growth of 6-6.5% over the prior year). Adverse foreign exchange translation is going to impact the full-year top line by 1.5% to 2.25%. However, the company raised its 2019 revenue guidance on a constant currency basis to a range of 8-8.25% from the earlier-projected range of 7.5-8%. The Zacks Consensus Estimate for revenues is pegged at $2.60 billion.
The company narrowed its full-year adjusted EPS from continuing operations to $11.05-$11.10, compared to the earlier band of $10.90-$11.10. The Zacks Consensus Estimate for the same is pegged at $11.03, below the company’s guided range.
Teleflex exited the third 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 third quarter is impressive. Expansion of gross margin also buoys optimism. A raised revenue guidance, on a constant currency basis, is an added positive. On the flip side, the company incurred adjusted operating loss during the quarter.
Earnings of Other MedTech Majors at a Glance
Teleflex carries a Zacks Rank #3 (Hold).
Some better-ranked companies, which posted solid results this earnings season, are Edwards Lifesciences (EW - Free Report) , Thermo Fisher Scientific (TMO - Free Report) and ResMed (RMD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Edwards Lifesciences delivered third-quarter 2019 adjusted EPS of $1.41, outpacing the Zacks Consensus Estimate by 15.6%. Net sales of $1.09 billion surpassed the Zacks Consensus Estimate by 5.5%.
Thermo Fisher delivered third-quarter 2019 adjusted EPS of $2.94, which surpassed the Zacks Consensus Estimate by 2.1%. Revenues of $6.27 billion outpaced the consensus estimate by 1.3%.
ResMed reported first-quarter fiscal 2020 adjusted EPS of 93 cents, which beat the Zacks Consensus Estimate of 87 cents by 6.9%. Revenues were $681.1 million, surpassing the Zacks Consensus Estimate by 3.6%.
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