Teleflex (NYSE:TFX) posted second-quarter results today that missed the revenue consensus on Wall Street and cut its outlook for the rest of the year.
Shares in TFX were down 10.40% to $238.80 apiece in mid-morning trading. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 1.1%.
The Wayne, Pennsylvania-based company reported profits of $105.5 million, or $2.23 per share, on sales of $704.5 million for the three months ended June 26, for a bottom-line growth of 26.7% on sales loss of 1.26% compared with Q2 2021.
Adjusted to exclude one-time items, earnings per share were $3.39, 85¢ ahead of The Street, where analysts were looking for sales of $719.5 million.
Teleflex is lowering its GAAP EPS for the fiscal year and is reducing in revenue growth guidance to a range of 3.25% to 4.25%. It also expects a year-over-year headwind from the initial phase of its respiratory divestiture completed on June 28.
Truist analysts pointed to slow growth of Teleflex’s UroLift system, missing by about $14M. Despite the miss, the analysts said Q2 margins outperformed.
“Our second quarter results showed the resilience of our diverse portfolio of growth drivers and medically-necessary products,” President and CEO Liam Kelly said in a news release. “Nonetheless, we did not see the expected operating environment recovery in our Interventional Urology business during the second quarter. Despite the near-term challenges, we remain committed to our multi-year strategy to drive growth in our high-growth portfolio and durable core, enhance margins, and advance our ESG initiatives.”