Teleflex
(NYSE: TFX)
today posted first-quarter earnings results that beat the overall consensus on Wall Street.
The Wayne, Pennsylvania-based company reported profits of $15.3 million, or 33¢ per share, on sales of $737.8 million for the three months ended March 31, 2024. Sales were up 3.79% compared to Q1 2023 while profits were down from $76.7 million during the same quarter last year.
Adjusted to exclude one-time items, earnings per share were $3.21, 14¢ ahead of The Street, where analysts were looking for sales of $726.89 million.
“In the quarter, we drove strong execution with constant currency growth and margin expansion year-over-year, executed against our new product launch objectives, and remained on track with our integration of Palette Life Sciences AB. Our first quarter performance, combined with an improving macro-environment, keeps us well-positioned to deliver on our financial guidance for 2024,” CEO and President Liam Kelly said in a news release.
Teleflex announced in July 2023 that it entered into a definitive agreement to acquire Palette Life Sciences for $600 million at closing and an additional $50 million upon achieving certain commercial milestones.
At the time of the acquisition, Teleflex said it expects a dilutive impact on its adjusted earnings per share in 2023 and 2024 by approximately 15¢ and 35¢, respectively. Beginning in fiscal 2025 and thereafter, the company forecasts an increasingly accretive impact on adjusted EPS. The company plans to finance the acquisition through borrowings under its revolving credit facilities plus cash on hand.
Teleflex’s depreciation expense, amortization of intangible assets and deferred financing charges totaled $66.9 million for Q1 2024, compared to $60.7 million for the same period last year.
The company is lowering its GAAP revenue growth guidance to 3.35% to 4.35% and raising its GAAP EPS from continuing operations guidance range to $6.87 to $7.22. It also raised the low end of its adjusted diluted EPS from continuing operations guidance range to $13.60 to $13.95.
Shares in Teleflex were down 4.68% to $201.70 apiece in mid-morning trading.