Teleflex shares rise on Q2 beat and raise

Shares in Teleflex (NYSE:TFX) rose today after the medical device maker topped expectations on Wall Street with its 2nd quarter earnings results, providing lifted guidance for the rest of its fiscal year.

The Wayne, Penn.-based company posted profits of $78 million, or $1.67 per share, on sales of $528.6 million for the 3 months ended June 30, for bottom-line growth of 30.9% while sales grew 11.4% compared with the same period last year.

Adjusted to exclude 1-time items, earnings per share were $2.04, topping the $1.91 consensus on Wall Street, where analysts were looking for sales of $520.8 million for the quarter.

“During the 2nd quarter of 2017, Teleflex continued to achieve solid results across our strategic business units and geographies, positioning us to reaffirm our full year constant currency revenue growth guidance range, while enabling us to once again increase our full year 2017 GAAP and adjusted earnings per share guidance ranges. Setting aside the impact of Vascular Solutions and 1 fewer shipping day in the quarter as compared to the 2nd quarter of 2016, Teleflex posted solid growth on a constant currency basis, driven by strong performance in our OEM, Vascular North America, Surgical North America and EMEA segments. In addition, Vascular Solutions continues to perform in-line with our expectations and the integration activities associated with this acquisition remain on-track. Also within the quarter, we made significant progress with our distributor to direct conversion in China, and as such, we anticipate an acceleration in revenue growth in the 2nd half of the year in China, as compared to the headwind we experienced during the 1st half of 2017. During the 2nd quarter of 2017, we continued to execute on our margin expansion initiatives, delivering solid gross and operating margins. Finally, the company continued to generate strong cash flow, enabling us to repay borrowings equivalent to approximately ten percent of the Vascular Solutions purchase price within only a few months after closing the transaction,” CEO Benson Smith said in a press release.

Along with the solid quarter, Teleflex raised its guidance for the full fiscal year. The company raised its revenue growth guidance, lifting it from between 10% and 11.5% to between 11.5% and 13%, and lifted its adjusted diluted EPS expectations from between $8.05 and $8.23 to between $8.20 and $8.35.

Teleflex shares are up 2.1% so far today, at $207.30 as of 10:27 a.m. EDT.

The post Teleflex shares rise on Q2 beat and raise appeared first on MassDevice.

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