TFX Stock Falls Despite Q3 Earnings and Revenue Beat, '25 View Down

Teleflex Incorporated TFX posted third-quarter 2025 adjusted earnings per share (EPS) from continuing operations of $3.67, up 5.2% from the year-ago quarter’s figure. The metric topped the Zacks Consensus Estimate by 8.6%.GAAP loss per share was $9.24 compared to EPS of $2.36 in the prior-year period.TFX’s RevenuesNet revenues were up 19.4% year over year to $913 million. The metric surpassed the Zacks Consensus Estimate by 2%. Following the announcement, shares of the company fell 0.8% last Friday.Segmental Analysis of TFX’s Q3 RevenuesTeleflex has three reportable segments — Americas, EMEA (Europe, the Middle East and Africa) and Asia (Asia Pacific).Net revenues in the Americas were $555.9 million, which increased 7.8% from the year-ago period’s level. This compares with our model’s projection of $588.6 million for the quarter.The EMEA (Europe, the Middle East and Africa) net revenues of $234.2 million increased 55.9% year over year. Our model projected revenues of $162.6 million for the quarter. Revenues from Asia (Asia Pacific) rose 25% to $122.9 million. Our model’s projection was $142.1 million.TFX’s Q3 Product Revenues in DetailThe Vascular Access segment recorded net revenues of $191 million, up 5.6% year over year. This compares with our model’s projection of $187.1 million.The Interventional business registered net revenues of $266.4 million, up 77.8% year over year. This compares with our model’s projection of $260.3 million.Within the Anesthesia segment, net revenues increased 0.4% year over year to $101.4 million. This compares with our model’s projection of $96.9 million.The Surgical segment recorded net revenues of $122.9 million, up 10% year over year. Our model’s projection was $114.6 million.Revenues from the Interventional Urology segment totaled $71.8 million, down 13.9% year over year. This compares with our model’s projection of $76.9 million.OEM recorded revenue growth of $80.4 million, down 2.6% year over year. This compares with our model’s projection of $81 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 $79.1 million reflected a year-over-year increase of 44.4%. This compares with our model’s projection of $76.4 million for the quarter.TFX’s Margin PerformanceThe gross profit was $451.6 million, up 5% year over year. The gross margin contracted 681 basis points (bps) to 49.5% due to a 38% rise in the cost of goods sold.Overall, the adjusted operating profit was $112.7 million, down 21.9% year over year. The adjusted operating margin contracted 652 bps to 12.3%.TFX’s Liquidity PositionTeleflex exited the third quarter of 2025 with cash and cash equivalents of $354 million compared with $253.7 million at the end of the second quarter. Net cash flow provided by operating activities from continuing operations was $189 million compared with $435.6 million in the year-ago period.Teleflex Incorporated Price, Consensus and EPS Surprise Teleflex Incorporated price-consensus-eps-surprise-chart | Teleflex Incorporated QuoteTeleflex’s Lowered 2025 GuidanceGAAP revenue growth for 2025 is now expected to be in the range of 9.10-9.60% (down from the prior guidance of 9.00-10.00%). The Zacks Consensus Estimate for total revenues is pegged at $3.32 billion, indicating 8.9% growth year over year. Teleflex now anticipates adjusted EPS from continuing operations to be in the range of $14.00-$14.20 (down from the prior guidance of $13.90-$14.30). The Zacks Consensus Estimate for EPS is pegged at $14.08.Our Take on TFXTeleflex exited the third quarter of 2025 with better-than-expected results, wherein both earnings and revenues beat estimates. Interventional, Vascular Access, and Surgical businesses delivered strong growth, supported by robust demand for complex catheters, EZ-IO, and core surgical products. However, softness in Anesthesia and Interventional Urology, along with lower balloon pump orders, partially offset overall gains.On a positive note, Teleflex completed the acquisition of substantially all of the Vascular Intervention business of BIOTRONIK SE & Co. KG. The acquisition adds a broad portfolio of therapeutic products to Teleflex’s portfolio of interventional access products, driving an enhanced global presence in the cath lab.On the flip side, a contraction of both the gross and adjusted margins does not bode well for the stock. Also, the company’s lowered 2025 guidance adds to the worry. TFX’s Zacks Rank and Key PicksTeleflex currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader medical space are Medpace Holdings MEDP, IDEXX Laboratories IDXX and Boston Scientific BSX.Medpace, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank stocks here.MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat on earnings in each of the trailing four quarters, the average surprise being 14.28%.IDEXX, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter 2025 adjusted EPS of $3.40, which exceeded the Zacks Consensus Estimate by 8.3%. Revenues of $1.11 billion topped the Zacks Consensus Estimate by 3.2%.IDXX has an estimated historical earnings growth rate of 14.9% compared with the industry’s 10.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 6.08%.Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion topped the Zacks Consensus Estimate by 1.9%.BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. 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(MEDP): 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