Yahoo Finance Teleflex (TFX) Q1 Earnings Top Estimates, 2023 Sales View Up
Teleflex Incorporated's TFX adjusted earnings per share (EPS) from continuing operations of $3.09 for the first quarter of 2023, down 7.3% from the year-ago quarter’s figure. The metric topped the Zacks Consensus Estimate by 4%.
GAAP EPS of $1.63 in the first quarter were same as the year-ago quarter’s figure of $1.63.
Revenues in Detail
Net revenues in the first quarter rose 10.8% year over year to $710.9 million, up 13.2% on a constant-exchange rate or CER. The top line surpassed the Zacks Consensus Estimate by 3.5%.
Quarter in Detail
Americas’ net revenues of $411.9 million rose 9% from the year-ago period’s levels and were up 9.2% at CER. The company saw growth across the majority of its businesses, including double-digit increases in interventional and surgical revenues.
EMEA net revenues of $143.3 million rose 4.7% year over year and increased 10.5% at CER. The company continued to see procedure volumes improvement on a year-over-year basis.
Revenues from Asia rose 22.8% at CER to $78.7 million, backed by strong contributions from growth in all geographies.
Segmental Revenues
In the first quarter, the Vascular Access segment recorded net revenues of $177.7 million, up 9.2% at CER. The Interventional business registered net revenues of $116.9 million, up 23.3% at CER.
Teleflex Incorporated Price, Consensus and EPS Surprise
Teleflex Incorporated price-consensus-eps-surprise-chart | Teleflex Incorporated Quote
Within the Anesthesia segment, net revenues increased 9.9% at CER to $93.3 million. The Surgical segment recorded net revenues of $99 million, reflecting an increase of 14.3% year over year at CER. Revenues of $75.4 million in the Interventional Urology segment rose 0.9% at CER.
OEM recorded revenue growth of $77 million, up 34.5% at CER. The Other product segment’s (consisting of the company’s respiratory products that were not included in the divestiture to Medline, manufacturing service agreement revenues and Urology Care products) net revenues of $71.6 million registered growth of 6.4% year over year at CER.
Margins
In the reported quarter, gross profit totaled $391.4 million, up 13% year over year. The gross margin expanded 110 basis points (bps) to 55.1%.
Overall, adjusted operating profit was $117.2 million, up 10.6% year over year. Adjusted operating margin saw a 2-bp contraction year over year to 16.5%.
Liquidity Position
Teleflex exited first-quarter 2023 with cash and cash equivalents of $264.1 million, down from $292 million at the end of fourth-quarter 2022.
Cumulative cash flow provided by operating activities from continuing operations at the end of the first quarter of 2023 was $84.3 million compared with $62.1 million in the year-ago period.
The company has a dividend payout ratio of 10% at present.
2023 View
Teleflex updated its 2023 financial guidance.
GAAP revenue growth for 2023 is now expected in the range of 4.65-5.90% (up from the previous guidance of 4.25-5.75%). The company’s constant-currency revenue growth expectation for 2023 lies in the band of 5.00-6.25% (the previous range was 4.75-6.25%). The current Zacks Consensus Estimate for total revenues is pegged at $2.93 billion.
The company projects 2023 adjusted EPS from continuing operations in the range of $13.00-$13.60, suggesting a decline of 0.5% to growth of 4.1% from the comparable reported figure in 2022. The Zacks Consensus Estimate for the same is currently pegged at $13.28.
Our Take
Teleflex exited the first quarter of 2023 on a bullish note with better-than-expected revenues and earnings. The year-over-year revenue growth was driven by all global product categories and expanded overall margins year-over-year. Teleflex’s Interventional Surgical and OEM product categories generated double-digit constant currency revenue growth year over year during the first quarter. The company witnessed strength across all geographies with China remained a solid contributor with very high single-digit growth in the quarter. The raised revenues 2023 outlook buoys optimism. On the flip side, escalating expenses and contraction of operating margin is discouraging.
Zacks Rank and Key Picks
Teleflex currently carries Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Edwards Lifesciences Corporation EW, Intuitive Surgical, Inc. ISRG and Johnson & Johnson JNJ.
Edwards Lifesciences, carrying a Zacks Rank #2 (Buy), reported first-quarter 2023 adjusted earnings per share (EPS) of 62 cents, beating the Zacks Consensus Estimate by 1.6%. Revenues of $1.46 billion outpaced the consensus mark by 4.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Edwards Lifesciences has a long-term estimated growth rate of 6.8%. EW’s earnings surpassed estimates in two of the trailing four quarters, missed the same in one and broke even in the other, the average being 1.2%.
Intuitive Surgical, having a Zacks Rank #2, reported first-quarter 2023 adjusted EPS of $1.23, which beat the Zacks Consensus Estimate by 3.4%. Revenues of $1.70 billion outpaced the consensus mark by 6.9%.
Intuitive Surgical has a long-term estimated growth rate of 13%. ISRG’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 1.9%.
Johnson & Johnson reported first-quarter 2023 adjusted earnings of $2.68 per share, beating the Zacks Consensus Estimate by 6.8%. Revenues of $24.75 billion surpassed the Zacks Consensus Estimate by 5%. It currently carries a Zacks Rank #2.
Johnson & Johnson has a long-term estimated growth rate of 5.5%. JNJ’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.9%.
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Teleflex Incorporated (TFX) : Free Stock Analysis Report
