Investors reacted to a sold 1st quarter from medical device company Teleflex (NYSE:TFX) by sending share prices down some 4% today, despite earnings that beat expectations and confirmed sales and profit guidance for the rest of the year.
The Limerick, Pa.-based medical device company reported profits of $27.0 million, or 64¢ per share, on sales of $411.9 million during the 3 months ended March 31, for top-line growth of 8.2% and a swing from losses of $283.7 million during Q1 2012.
Adjusted to exclude 1-time items, earnings per share reached $1.03, 2¢ ahead of expectations on Wall Street.
"Overall, in the first quarter, I am pleased with the progress Teleflex has made on its operating initiatives," chairman, president & CEO Benson Smith said in prepared remarks. "The company delivered high single-digit revenue growth and year-over-year earnings per share expansion, despite being impacted by headwinds such as 2 fewer shipping days compared to last year’s 1st quarter, the medical device tax and the impact of our convertible notes on our weighted average shares calculation due to the appreciation in our stock price. We remain focused on executing our strategic plan and capturing additional share in the markets we serve, while remaining committed to rationalizing our cost base to generate increased profitability for our shareholders."
Teleflex confirmed its outlook for the rest of 2013, saying it still expects to log constant-currency sales growth of 11%-13% and adjusted EPS of $4.70-$4.90.
Investors nevertheless sent TFX shares down 4.2% to $78.82 as of about 1:25 p.m. today.