The company posted an 11.4% increase in sales and an 11.3% increase in profits, with adjusted earnings coming in almost 19% higher year-over-year.
The numbers are great for the company, which has been resorting to layoffs to help deal with "continuing pressures that companies like Teleflex face in the healthcare industry." The company is hoping plant closures and other "manufacturing efficiencies" will help it reach its target 55% gross margin by 2015, Teleflex chairman, president & CEO Benson Smith said in a conference call with analysts this week.
In total Teleflex reported profits of $47.3 million, or $1.04 per diluted share, on sales of $468.1 million during the 3 months ended June 29, 2014. That compared with profits of $42.4 million, or 99¢ per share, on sales of $420.1 million during the same period last year.
Excluding special items, adjusted per-share earnings amounted to $1.51, beating analysts’ consensus estimate of $1.34. Teleflex expects that momentum to continue throughout the year, increasing its full-year adjusted earnings guidance to $5.45-$5.60 per share, up from previous guidance of $5.35-$5.55.
Teleflex posted increase to nearly all of its segments, with the exception of its Anesthesia/Respiratory North America division, which decreased about 6% year-over-year. The company attributed the decline largely to lower sales volume of existing products, which was somewhat offset by new product introductions and price increases, according to the earning report.
The device maker did especially well in Asia, with revenue growth of more than 24% reported for the region. The boost "was largely due to the acquisitions of Mayo Healthcare and Vidacare, price increases, the introduction of new products to the market and higher sales volume of existing products," Teleflex said.
News of the company’s quarter helped give TFX shares a boost before the end of trading yesterday. The stock gained 3% to close at $108.90.