Shares in Teleflex (NYSE:TFX) fell today after the medical device maker beat earnings per share expectations on Wall Street but missed on sales consensus with its second quarter results.
The Wayne, Penn.-based company posted losses of $2.5 million, or 5¢ per share, on sales of $609.9 million for the three months ended July 1, seeing a 103.2% turn to losses on the bottom-line while sales grew 15.4% compared with the same period last year.
Adjusted to exclude one-time items, earnings per share were $2.47, ahead of the $2.41 consensus on The Street, where analysts were looking for sales of $616.2 million, which the company missed.
“While Teleflex’s constant currency revenue growth during the second quarter fell short of our expectations, this was primarily due to the timing of orders received from distributors, as well as certain product constraints associated with key suppliers. However, we were still able to achieve adjusted earnings per share of $2.47, which is an increase of 21.1%. In addition, I am pleased to report that in the recent weeks, orders and revenue rebounded, and therefore, we continue to estimate that full year constant currency revenue growth will be between 12% and 13%,” prez & CEO Liam Kelly said in a press release. We continued to see strong performance from NeoTract, which generated approximately $48 million in revenue during the second quarter, representing growth of approximately 58%. Urolift continues to generate strong physician adoption, and its second quarter revenues, inclusion in the AUA Guidelines and continued expansion of published clinical evidence give us increased confidence in its short and long-term growth trajectory, and as such, we are raising our revenue expectations for NeoTract as we now believe it will grow approximately 50% over 2017 levels.”
Teleflex lowered its full year 2018 GAAP revenue growth guidance, dropping it from between 15% and 16% to between 14% and 15%. The company also dropped its GAAP diluted earnings per share expectations from between $5.45 and $5.55 to between $4.60 and $4.70, but reaffirmed its earlier adjusted EPS guidance.
“Notwithstanding recent volatility in foreign currency exchange rates, I am pleased to report that we are maintaining our previously provided full year adjusted diluted earnings per share guidance range of between $9.70 and $9.90,” prez & CEO Kelly said in prepared remarks.
Shares in Teleflex have fallen approximately 7% so far today, at $251.96 as of 12:55 p.m. EDT.
In May, Teleflex inked a deal to acquire QT Vascular‘s non-drug coated coronary products, including its Chocolate XD and Glider, with an option to purchase its Chocolate Heart drug-coated coronary balloon catheter which is currently under development.
