Send me real-time posts from this site at my email
Zacks

Teleflex (TFX) Beats on Q1 Earnings and Revenues, Raises View

Teleflex Incorporated’s TFX adjusted earnings per share (EPS) from continuing operations of $2.87 for the first quarter of 2021 were up 5.5% year over year. The bottom line surpassed the Zacks Consensus Estimate by 17.6%.

GAAP EPS for the first quarter was $1.58, reflecting a 43.2% plunge from the year-ago $2.78.

Revenues in Detail

Net revenues in the first quarter rose 0.5% year over year to $633.9 million but declined 2.6% on a constant exchange rate or CER. The top line surpassed the Zacks Consensus Estimate by 2%.

Americas registered net revenues of $375.5 million, an increase of 4.7% year over year at CER.  The acquisition of Z-Medica, LLC and an increase in sales of new products contributed to the revenue growth. However this was partially offset by a net decrease in sales volumes of existing products caused by the pandemic.

Teleflex Incorporated Price, Consensus and EPS Surprise

Teleflex Incorporated price-consensus-eps-surprise-chart | Teleflex Incorporated Quote

EMEA net revenues of $141.2 million dropped 16.9% at CER due to a net decrease in sales volumes of existing products caused by the COVID-19 pandemic.

Revenues in Asia registered an increase of 10.3% at CER to $63.7 million primarily attributable to increased sales of new products and increased sales volumes of existing products.

Segmental Revenues

In the first quarter, the Vascular Access segment reported net revenues of $164 million, up 5.8% year over year at CER. The Interventional business registered net revenues of $96.2 million, down 6.4% on a year-over-year basis at CER.

Within the Anesthesia segment, net revenues improved 7% to $84.9 million. The Surgical segment recorded net revenues of $80.4 million, reflecting 2.3% rise at CER. Revenues of $73.4 million in the Interventional Urology segment declined 1.3% on a year-over-year basis at CER.

Meanwhile, OEM recorded revenue growth of $53.5 million, down 17.1%. The Other product segment (consisting of the company’s respiratory and urology care products) registered net revenues of $81.7 million, down 15.3% at CER.

Margins

In the reported quarter, gross profit totaled $344.5 million, up 3.3% year over year. Gross margin expanded 145 basis points (bps) to 54.3%.

Overall adjusted operating loss was $61.8 million against adjusted operating profit of $38 million in the year-ago period.

Liquidity Position

Teleflex exited the first quarter of 2021 with cash and cash equivalents of $324.6 million, down from $375.9 million at the end of fourth quarter of 2020.

Cumulative cash flow provided by operating activities from continuing operations at the end of the first quarter was $110.8 million compared with operating cash outflow of $11.5 million in the year-ago period.

2021 View

Teleflex has raised its financial guidance for 2021 revenues and adjusted earnings.

Revenue growth for 2021 is expected to be in the range of 10.5-11.75% (up 8.5-9.75% at CER). This compares to the earlier guidance of revenue growth expectation of 10-11.5% (up 8-9.5% at CER). The current Zcks Consensus Estimate remains at $2.81 billion.

The company currently projects its adjusted EPS from continuing operations for 2021 to be between $12.65 and $12.85 (earlier expectation was $12.50-$12.70). The Zacks Consensus Estimate for the same is currently pegged at $12.63.

Our Take

Teleflex reported better-than-expected first-quarter results. Geographically, the company’s performance was strong in the Americas (driven by strong sales of Vascular Access and respiratory products, both of which saw coronavirus-led elevated demand) and Asia banking on improving sales volume. The raised guidance for 2021 buoys optimism.         

However, continued operating loss is a major concern.

Zacks Rank and Key Picks

Teleflex currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical space include Semler Scientific Inc. SMLROwens & Minor, Inc. OMI and DENTSPLY SIRONA Inc. XRAY.

Semler is expected to release results on May 3. The Zacks Consensus Estimate for the company’s first-quarter 2021 adjusted EPS is currently pegged at 48 cents. The consensus mark for first-quarter revenues stands at $11.9 million. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Owens & Minor is scheduled to release results on May 5. The Zacks Consensus Estimate for its first-quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion. The company currently carries a Zacks Rank #2 (Buy).

DENTSPLY SIRONA is slated to release results on May 6. The Zacks Consensus Estimate for first-quarter 2021 adjusted EPS is currently pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million. The company currently carries a Zacks Rank #2.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
DENTSPLY SIRONA Inc. (XRAY): Free Stock Analysis Report
 
Owens & Minor, Inc. (OMI): Free Stock Analysis Report
 
Teleflex Incorporated (TFX): Free Stock Analysis Report
 
Semler Scientific Inc. (SMLR): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue