Teleflex Inc Earnings: Here’s Why Shares are Up Now

Teleflex Incorporated (NYSE:TFX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.1%.

Teleflex Incorporated Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.25% to $1.27 in the quarter versus EPS of $1.23 in the year-earlier quarter.

Revenue: Rose 9.59% to $420.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Teleflex Incorporated reported adjusted EPS income of $1.27 per share. By that measure, the company beat the mean analyst estimate of $1.16. It missed the average revenue estimate of $432.18 million.

Quoting Management: “During the second quarter, Teleflex continued to make progress on its operating initiatives despite declining utilization rates,” said Benson Smith, Chairman, President and CEO. “Aided by the impact from our 2012 acquisition of LMA International, an improvement in the average selling prices of products, and the continued introduction of new products to the marketplace, the Company delivered second quarter constant currency revenue growth of 9.6% and year-over-year gross margin expansion. In addition, we acquired Ultimate Medical and Eon Surgical which will strengthen our anesthesia and surgical strategic business unit franchises. However, because of persisting negative utilization and physician visit trends, we are lowering the top and bottom end of our full year 2013 constant currency revenue growth expectations to now be between 10% to 12%. Despite the slight reduction in revenue growth expectations, I am pleased to announce that through cost reduction efforts and favorable product mix, we are reaffirming our previously provided adjusted earnings per share range of between $4.70 to $4.90 per share.”

Key Stats (on next page)…

EPS increased 23.3% from $1.03 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.17 to a profit $1.20. For the current year, the average estimate has moved up from a profit of $4.72 to a profit of $4.82 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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