Shares in Teleflex (NYSE:TFX) fell today despite the medical device maker meeting earnings per share expectations on Wall Street in its 3rd quarter.
The Wayne, Penn.-based company posted profits of $66.3 million, or $1.40 per share, on sales of $455.6 million for the 3 months ended September 25. The company posted bottom-line growth of 7.7% while sales grew 2.7%, compared with the same period in the previous year.
After adjusting to exclude 1 time items, earnings per share were $1.80, 2¢ ahead of the consensus on The Street, with analysts expecting to see slightly higher sales of $461 million.
TFX shares sunk on the release, dropping 11.5% to close $18.08 down at $139.41.
“Third quarter sales were below our expectations, driven in part by weakness in certain Asian emerging markets, continued softness in oil-based Latin American economies, the timing of distributor purchases which negatively impacted some of our North American product lines and a slower than initially anticipated contribution from revenue associated with new products. Despite the softness in revenue, non-revenue dependent financial leverage allowed the company’s adjusted earnings per share performance in the third quarter to exceed our expectations. Based on the performance during the third quarter, as well as our expectations for the remainder of the year, we are lowering our full year 2016 GAAP and constant currency revenue growth ranges. We now expect our full year 2016 GAAP and constant currency revenue to grow between 2.4% to 2.8% and 3.4% to 3.8%, respectively. Despite the reduction in revenue growth expectations, we are maintaining our full year GAAP earnings per share range of $5.34 to $5.41 and increasing our full year adjusted earnings per share range to be $7.25 to $7.34,” chair & CEO Benson Smith said in a press release.
Teleflex lowered revenue guidance for the full year 2016, expecting to see revenue increases of between 2.4% and 2.8% over prior year revenue.
The company reaffirmed its earnings per share guidance for the full year, expecting to see GAAP diluted earnings per share between $5.34 and $5.41 for the year. Non-GAAP earnings per share are expected to be between $7.25 and $7.34.
