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Teleflex (TFX) Rides on UroLift Sales Amid Coronavirus Mayhem
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On May 26, we issued an updated research report on Teleflex Incorporated (TFX - Free Report) . The company is witnessing a solid uptick in revenues, driven by sturdy performance across the majority of segments and geographies. Escalating costs and expenses continue to remain a major cause of worry. The stock carries a Zacks Rank #3 (Hold).
Shares of Teleflex have outperformed the industry in the past six months. The stock has rallied 2.7% against the industry's 2.6% decline.
Teleflex first-quarter 2020 results were better than expected. Net revenues in the quarter rose 4% at constant exchange rate. Original Equipment Manufacturer and Development Services (OEM) recorded 17.5% growth at CER. Geographically, the Americas recorded 4.3% growth at CER.
NeoTract, the acquired business of Teleflex, has been performing impressively lately. This has prompted Teleflex to pay a higher level of contingent consideration than previously planned. Notably, in the first quarter, the Interventional Urology business improved 24.3% at CER on robust growth of UroLift till the first two weeks of March. The company trained more than 500 urologists, surpassing its target of 450.
Geographically, Teleflex registered robust growth in its Americas region (up 4.1% and 4.3% at CER). This growth was primarily driven by strength in its Interventional Urology, Vascular Access and respiratory product categories despite the pandemic. In EMEA, reported growth was 1% whereas at CER, the growth was 3.8%. The uptick resulted from robust demand for Vascular Access, respiratory and Anesthesia products. Increased demand for respiratory products resulted from requirements to treat patients with COVID-19.
However, the company witnessed significant revenue decline in three of its business segments and in regions like Asia due to the COVID-19 outbreak. In this period, the Interventional business revenues were hampered due to the cancellation of certain non-emergent procedures whereas Anesthesia segment saw lower sales of laryngeal masks and certain regional Anesthesia products.
Shutdown of one of the company’s third-party sterilization providers during the quarter is also concerning. The guidance withdrawal also does not bode well.
Stocks to Consider
Some better-ranked stocks from the broader medical space are Aphria Inc. , Surmodics, Inc. (SRDX - Free Report) and Owens Minor, Inc. (OMI - Free Report) .
Surmodics’ long-term earnings growth rate is estimated at 10%. The company presently sports a Zacks Rank #1.
Owens Minor’s long-term earnings growth rate is estimated at 8.3%. It currently carries a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Teleflex (TFX) Rides on UroLift Sales Amid Coronavirus Mayhem
On May 26, we issued an updated research report on Teleflex Incorporated (TFX - Free Report) . The company is witnessing a solid uptick in revenues, driven by sturdy performance across the majority of segments and geographies. Escalating costs and expenses continue to remain a major cause of worry. The stock carries a Zacks Rank #3 (Hold).
Shares of Teleflex have outperformed the industry in the past six months. The stock has rallied 2.7% against the industry's 2.6% decline.
Teleflex first-quarter 2020 results were better than expected. Net revenues in the quarter rose 4% at constant exchange rate. Original Equipment Manufacturer and Development Services (OEM) recorded 17.5% growth at CER. Geographically, the Americas recorded 4.3% growth at CER.
Teleflex Incorporated Price
Teleflex Incorporated price | Teleflex Incorporated Quote
NeoTract, the acquired business of Teleflex, has been performing impressively lately. This has prompted Teleflex to pay a higher level of contingent consideration than previously planned. Notably, in the first quarter, the Interventional Urology business improved 24.3% at CER on robust growth of UroLift till the first two weeks of March. The company trained more than 500 urologists, surpassing its target of 450.
Geographically, Teleflex registered robust growth in its Americas region (up 4.1% and 4.3% at CER). This growth was primarily driven by strength in its Interventional Urology, Vascular Access and respiratory product categories despite the pandemic. In EMEA, reported growth was 1% whereas at CER, the growth was 3.8%. The uptick resulted from robust demand for Vascular Access, respiratory and Anesthesia products. Increased demand for respiratory products resulted from requirements to treat patients with COVID-19.
However, the company witnessed significant revenue decline in three of its business segments and in regions like Asia due to the COVID-19 outbreak. In this period, the Interventional business revenues were hampered due to the cancellation of certain non-emergent procedures whereas Anesthesia segment saw lower sales of laryngeal masks and certain regional Anesthesia products.
Shutdown of one of the company’s third-party sterilization providers during the quarter is also concerning. The guidance withdrawal also does not bode well.
Stocks to Consider
Some better-ranked stocks from the broader medical space are Aphria Inc. , Surmodics, Inc. (SRDX - Free Report) and Owens Minor, Inc. (OMI - Free Report) .
Aphria’s long-term earnings growth rate is projected at 24.6%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Surmodics’ long-term earnings growth rate is estimated at 10%. The company presently sports a Zacks Rank #1.
Owens Minor’s long-term earnings growth rate is estimated at 8.3%. It currently carries a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>