Teleflex (NYSE:TFX) shares slided today, even as the company reported first-quarter results that came in ahead of the consensus forecast.
The Wayne, Pennsylvanis–based critical care and surgical tech company posted profits of $77.1 million, or $1.63 per share, on sales of $641.7 million for the three months ended March 27, 2022, for a 3% bottom-line gain on sales growth of 1.2%.
Adjusted to exclude one-time items, earnings per share were $2.88, 13¢ ahead of Wall Street, where analysts were looking for sales of $634 million.
“Teleflex delivered solid first-quarter results reflecting strong execution, the benefits of our diversified product portfolio, and the dedication of our global team to serving our customers,” Teleflex Chair, President and CEO Liam Kelly said in a news release. “COVID-19 cases trended down throughout the first quarter, and the number of elective surgical procedures increased. Although Teleflex continues to monitor inflationary and supply chain pressures, we believe that the company remains well-positioned to drive durable growth and manage the challenges of the current environment.”
Teleflex maintains its previously announced financial guidance for 2022, with adjusted EPS expected to range between $13.70 and $14.30 and revenue growth expected to fall between $2.3% and 3.8%. The company did revise its GAAP EPS projection, raising both ends by 5¢ to a range of $8.90 to $9.50.
During today’s earnings call, analysts questioned Kelly on the company’s decision to stick with the adjusted EPS projection and the prediction that it will see 15% sales growth for its UroLift system for treating prostate gland enlargement. Kelly responded that he had met with dozens of urologists during the first quarter and walked away confident that customers would move beyond problems related to COVID-19 and staffing shortages in the second half of the year.
TFX shares were down more than 10% to $284.49 apiece by midday trading today. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was down 2%.
Truist analysts later noted that the Urolift sales growth projections relied on a steep acceleration during the second half of the year — but were still surprised to see TFX shares trade off as much as they did.