Teleflex Incorporated TFX reported earnings per share (EPS) from continuing operations of $2.24 for the first quarter of 2019, up 4.2% year over year. The bottom line also surpassed the Zacks Consensus Estimate by 3.7%.
Reported EPS came in at 89 cents, down 24.6% year over year.
Net revenues from continuing operations in the first quarter rose 4.5% year over year to $613.6 million. On a year-over-year basis, the company saw organic constant currency revenue growth of 7.6%.The top line surpassed the Zacks Consensus Estimate by 0.9%
Revenues in Detail
In the first quarter, the Vascular segment recognized net revenues of $143.9 million, up 2.5% year over year at CER. The company registered strong growth in PICC (Peripherally Inserted Central Catheters), visual navigation products and EZ-IO.
The Interventional business registered net revenues of $103.2 million, a 17.1% rise on a year-over-year basis at CER. This upside was backed by higher sales of Vascular Solutions products as well as growth in OnControl.
Teleflex Incorporated Price, Consensus and EPS Surprise
Teleflex Incorporated price-consensus-eps-surprise-chart | Teleflex Incorporated Quote
Within Anesthesia segment, net revenues declined 1.5% at CER to $80.3 million. Growth in sales volumes of existing products and stronger new product sales during the first quarter were partially offset by price declines.
Surgical segment realized net revenues of $86.7 million, reflecting a 5% rise at CER on increased sales of Asian cliffs (ph) and Surgical Instruments.
Revenues at the Interventional Urology segment registered growth of 41.5% at CER to $59.7 million. The segment of OEM products recorded net revenues of $54.2 million, showing a 20.1% rise at CER.
Meanwhile, EMEA recorded revenue growth of 4.5% at CER to $154.6 million, driven by distributor convergence as well as increased sales of vascular access products.
Asia, OEM and Americas registered net revenues of $60.8 million, $54.2 million and $344 million, respectively (corresponding top-line growth of 11%, 20.1% and 6.7% each at CER), in the quarter under review.
Gross margin of 56.2% in the quarter under discussion contracted 23 basis points (bps) year over year despite a 4.1% improvement in gross profits to $344.7 million. Adjusted operating margin deteriorated 66 bps to 14.7% on 5.6% rise in operating expenses to $254.8 million.
The company exited the first quarter of 2019 with cash and cash equivalents of $271.2 million compared with $357.2 million at the end of 2018. Net cash provided by operating activities at the end of first-quarter 2019 was $60.2 million compared with $86.8 million a year ago.
Teleflex has reaffirmed its 2019 guidance. Revenues are expected to increase 5% to 6% from the year-ago period. This reflects an 1% unfavorable impact of foreign exchange translation. The Zacks Consensus Estimate for revenues is pegged at $2.58 billion.
The company also reaffirms full-year adjusted earnings per share from continuing operations at the $10.90-$11.10 band, suggesting an increase of 10.1% to 12.1% over 2018 and indicating a 2% negative impact from foreign exchange translation. The Zacks Consensus Estimate for the same is pegged at $11.03, within the company’s guided range.
Teleflex exited the first quarter of 2019 on a solid note. We are upbeat to note that the company has maintained robust improvement in revenues on balanced growth across all segments and geographies. The company’s newly-acquired NeoTract has continued to contribute to the top line in the quarter under review.The continued momentum of the Urolift in the first quarter also buoys optimism.
On the flip side, both margins have contracted in the quarter.
Zacks Rank and Other Key Picks
Teleflex currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks reporting solid results this earnings season are Stryker Corporation SYK, Abbott Laboratories ABT and CONMED Corporation CNMD, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker delivered first-quarter 2019 adjusted EPS of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the consensus estimate.
Abbott reported first-quarter 2019 adjusted EPS of 63 cents, topping the Zacks Consensus Estimate by 3.3%. Worldwide sales came in at $7.54 billion, above the consensus estimate of $7.47 billion.
CONMED posted first-quarter 2019 adjusted EPS of 57 cents, which exceeded the Zacks Consensus Estimate of 54 cents. Revenues summed $218.4 million, outshining the consensus mark of $213 million.
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