Teleflex Q1 Earnings Beat, '25 EPS View Down, Stock Up

Teleflex Incorporated TFX posted first-quarter 2025 adjusted earnings per share (EPS) from continuing operations of $2.91, down 9.3% from the year-ago quarter’s figure. The metric topped the Zacks Consensus Estimate by 1%.GAAP EPS was $2.07 compared with $0.33 in the prior-year period.Following the announcement, shares of the company rose 0.4% last Friday. TFX’s RevenuesNet revenues fell 5% year over year (down 3.8% at constant exchange rate or CER) to $700.7 million. However, the metric surpassed the Zacks Consensus Estimate by 0.2%. (See the Zacks Earnings Calendar to stay ahead of market-making news.) Segmental Analysis of TFX’s Q1 RevenuesTeleflex has three reportable segments — Americas, EMEA (Europe, the Middle East and Africa) and Asia (Asia Pacific).Net revenues in the Americas were $475.7 million, which decreased 3.7% from the year-ago period’s level (down 3.2% at CER). This compares with our model’s projection of $477.9 million for the quarter.The EMEA (Europe, the Middle East and Africa) net revenues of $151.2 million decreased 5.3% year over year (down 2.8% at CER). Our model projected revenues of $144.4 million for the quarter. Revenues from Asia (Asia Pacific) fell 12.8% to $73.8 million (down 9.7% at CER). Our model’s projection was $75.4 million.TFX’s Q1 Product Revenues in DetailThe Vascular Access segment recorded net revenues of $182.4 million, up 1.9% year over year at CER. This compares with our model’s projection of $179.6 million.The Interventional business registered net revenues of $137.5 million, up 3.2% year over year at CER. This compares with our model’s projection of $137.4 million.Within the Anesthesia segment, net revenues decreased 8.6% year over year at CER to $86.6 million. This compares with our model’s projection of $91.6 million.The Surgical segment recorded net revenues of $105.8 million, up 2% year over year at CER. Our model’s projection was $108.7 million.Revenues from the Interventional Urology segment totaled $71 million, down 10.7% year over year at CER. This compares with our model’s projection of $70.1 million.OEM recorded revenue growth of $63.9 million, down 26.8% year over year at CER. This compares with our model’s projection of $64 million.The Other product segment’s (consisting of the company’s respiratory products not included in the divestiture to Medline, manufacturing service agreement revenues and Urology Care products) net revenues of $53.5 million registered a year-over-year increase of 4.5% at CER. This compares with our model’s projection of $46.6 million for the quarter.TFX’s Margin PerformanceThe gross profit totaled $389.4 million, down 6.4% year over year. The gross margin contracted 82 basis points (bps) to 55.6% due to a 3.3% rise in the cost of goods sold.Overall, the adjusted operating profit was $130.3 million, down 4.2% year over year. The adjusted operating margin expanded 17 bps to 18.6%.TFX’s Liquidity PositionTeleflex exited the first quarter of 2025 with cash and cash equivalents of $284.1 million compared with $290.2 million at the end of the fourth quarter of 2024. Teleflex Incorporated Price, Consensus and EPS Surprise Teleflex Incorporated price-consensus-eps-surprise-chart | Teleflex Incorporated QuoteNet cash flow provided by operating activities from continuing operations was $73.3 million compared with $112.8 million in the year-ago period.Teleflex’s Updated 2025 GuidanceGAAP revenue growth for 2025 is now expected to be in the range of 1.28-2.28% (down from the prior guidance of 0.4% decline to 0.7% growth). The Zacks Consensus Estimate for total revenues is pegged at $3.07 billion.Teleflex now anticipates adjusted EPS from continuing operations to be in the range of $13.20 to $13.60 (down from the prior guidance of $13.95-$14.35). The Zacks Consensus Estimate for EPS is pegged at $13.78.Our Take on TFXTeleflex exited the first quarter of 2025 with better-than-expected results, wherein both earnings and revenues beat estimates. However, the year-over-year decline in revenues was due to softness in orders in the EMEA region. Interventional, Vascular Access and Surgical businesses performed well with single-digit adjusted constant currency growth. Within Anesthesia, endotracheal tubes and hemostatic products showed growth in the quarter, which was offset by tough military orders and pressure on airway products.On a positive note, Teleflex has entered into a definitive agreement to acquire substantially all of the Vascular Intervention business of BIOTRONIK SE & Co. KG. With the acquisition of BIOTRONIK products, Teleflex will gain meaningful scale, expand its presence in the cath lab and be poised for continued growth. The product portfolio includes a broad suite of vascular intervention devices such as drug-coated balloons, drug-eluting stents, covered stents balloon and self-expanding bare metal stents and balloon catheters.On the flip side, a contraction of the adjusted gross margin does not bode well for the stock. Also, the company’s lowered 2025 adjusted EPS guidance adds to the worry. TFX’s Zacks Rank and Key PicksTeleflex currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Veeva Systems VEEV and Masimo MASI. AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter fiscal 2025 adjusted EPS of 3 cents, which beat the Zacks Consensus Estimate of a loss of 13 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.Revenues of $72 million beat the Zacks Consensus Estimate by 2%. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 70.9%.Veeva Systems, sporting a Zacks Rank #1 at present, posted fourth-quarter fiscal 2025 adjusted EPS of $1.75, which exceeded the Zacks Consensus Estimate by 10.1%. Revenues of $720.9 million surpassed the Zacks Consensus Estimate by 3.2%.VEEV has an estimated long-term earnings growth rate of 26.6% compared with the industry’s 20.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.9%.Masimo, currently sporting a Zacks Rank #1, reported fourth-quarter 2024 adjusted EPS of $1.80, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $600.7 million topped the Zacks Consensus Estimate by 0.8%.MASI has an estimated earnings yield of 3.5% for fiscal 2025 compared with the industry’s 3.6%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.4%.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 AngioDynamics, Inc. (ANGO): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report Veeva Systems Inc. (VEEV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks