The Wayne, Pa.-based surgical and critical care device maker posted profits of $11.5 million, or 24¢ per share, on sales of $567 million for the three months ended June 28, 2020, for an 86.3% bottom-line slide on a sales decline of 13.1%.
Adjusted to exclude one-time items, earnings per share were $1.93, 68¢ ahead of Wall Street, where analysts were looking for sales of $537.9 million.
According to a news release, Teleflex estimates that the COVID-19 pandemic and the resulting delays of elective procedures impacted revenue by approximately $130 million, or 20%.
The company also announced a workforce reduction plan that it expects to complete in 2020, with anticipated restructuring charges of between $10 million and $13 million related primarily to termination benefits. Teleflex expects plan-related savings of between $11 million and $13 million once fully implemented.
“We were pleased with our second quarter 2020 performance, which significantly exceeded our internal expectations and reflected improvements in underlying monthly revenue trends for the product categories most impacted by the postponement of non-emergent procedures because of COVID-19, particularly interventional urology, interventional access, and surgical,” Teleflex president & CEO Liam Kelly said in the release. “Like our revenue performance, our second quarter 2020 adjusted EPS of $1.93 also significantly exceeded our expectations, reflecting the recovery we saw in procedures, as well as prudent operating expense management.”
Teleflex said it will not be reinstating its 2020 financial guidance as the uncertainties caused by the COVID-19 pandemic continue to loom large.
TFX shares were down -5.7% at $378.26 per share in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down -1.5%.