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Teleflex (TFX) Procedure Volume Recovers as Pandemic Subsides
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Teleflex Incorporated (TFX - Free Report) has been witnessing gradual rebound in revenues, driven by stable performance across its operating segments and geographies. The stock currently carries a Zacks Rank #3 (Hold).
Over the past six months, Teleflex’s stock has outperformed its industry. The stock has gained 4.1% compared with the industry's 0.8% growth.
Teleflex reported better-than-expected first-quarter results. Earnings significantly exceeded the company’s expectations, reflecting recovery in monthly procedures throughout the quarter, coupled with prudent operating expense management. Geographically, the company’s performance was strong in the Americas (driven by strong sales of Vascular Access and respiratory products, both of which saw coronavirus-led elevated demand) and Asia driven by improving sales volume. The raised guidance for 2021 buoys optimism.
The UroLift System remained a major revenue contributor for the company. In the first quarter, adjusting for selling days, the UroLift product grew approximately 1.9%. According to Teleflex, the strong growth trends that occurred for UroLift in March continued in April, banking on improvements in average daily sales trends. April’s average daily sales for the first time reached pre-COVID daily rates on a consistent basis.
With gradual improvement in COVID situation, the company expects to see UroLift as one of the first procedures to be performed by hospitals. The company has trained 115 new urologists in the first quarter and is well on track to achieve the annual target of training 450 to 500 new urologists during 2021.
Meanwhile, on the strength of a successful 2020 campaign, Teleflex has doubled the awareness for UroLift in the targeted population of men with benign prostatic hyperplasia (BPH) and also has decided to increase its investment in 2021 and run a national campaign for the full year.
Geographically, the pace of recovery in the United States during the first quarter was encouraging. Revenues were up 4.7% or 8.3% on a day sales adjusted basis. Growth in the quarter was driven by strength in Vascular, Anesthesia, Surgical and Interventional Urology on a day’s adjusted basis.
On the flip side, the coronavirus pandemic is wreaking havoc on the economy as a whole, with Teleflex facing the impact since the second half of March 2020. In the first quarter of 2021, revenues were down 2.6% on a constant currency basis, driven by lingering COVID-19 headwinds.
Within EMEA, the company reported a 16.9% decline (down 14.4% on a days adjusted basis) in revenues. EMEA was impacted by a difficult year-over-year comparable. The prior-year period had seen bulk ordering ahead of the initial COVID-19 surge as well as a higher level of COVID-related restrictions and elective procedure deferrals. Further, the OEM business continued to see a lagged impact related to COVID recovery.
Envista Holdings has an estimated long-term earnings growth rate of 26%.
Inogen has an estimated long-term earnings growth rate of 33%.
IDEXX Laboratories has a projected long-term earnings growth rate of 20%.
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Teleflex (TFX) Procedure Volume Recovers as Pandemic Subsides
Teleflex Incorporated (TFX - Free Report) has been witnessing gradual rebound in revenues, driven by stable performance across its operating segments and geographies. The stock currently carries a Zacks Rank #3 (Hold).
Over the past six months, Teleflex’s stock has outperformed its industry. The stock has gained 4.1% compared with the industry's 0.8% growth.
Teleflex reported better-than-expected first-quarter results. Earnings significantly exceeded the company’s expectations, reflecting recovery in monthly procedures throughout the quarter, coupled with prudent operating expense management. Geographically, the company’s performance was strong in the Americas (driven by strong sales of Vascular Access and respiratory products, both of which saw coronavirus-led elevated demand) and Asia driven by improving sales volume. The raised guidance for 2021 buoys optimism.
Teleflex Incorporated Price
Teleflex Incorporated price | Teleflex Incorporated Quote
The UroLift System remained a major revenue contributor for the company. In the first quarter, adjusting for selling days, the UroLift product grew approximately 1.9%. According to Teleflex, the strong growth trends that occurred for UroLift in March continued in April, banking on improvements in average daily sales trends. April’s average daily sales for the first time reached pre-COVID daily rates on a consistent basis.
With gradual improvement in COVID situation, the company expects to see UroLift as one of the first procedures to be performed by hospitals. The company has trained 115 new urologists in the first quarter and is well on track to achieve the annual target of training 450 to 500 new urologists during 2021.
Meanwhile, on the strength of a successful 2020 campaign, Teleflex has doubled the awareness for UroLift in the targeted population of men with benign prostatic hyperplasia (BPH) and also has decided to increase its investment in 2021 and run a national campaign for the full year.
Geographically, the pace of recovery in the United States during the first quarter was encouraging. Revenues were up 4.7% or 8.3% on a day sales adjusted basis. Growth in the quarter was driven by strength in Vascular, Anesthesia, Surgical and Interventional Urology on a day’s adjusted basis.
On the flip side, the coronavirus pandemic is wreaking havoc on the economy as a whole, with Teleflex facing the impact since the second half of March 2020. In the first quarter of 2021, revenues were down 2.6% on a constant currency basis, driven by lingering COVID-19 headwinds.
Within EMEA, the company reported a 16.9% decline (down 14.4% on a days adjusted basis) in revenues. EMEA was impacted by a difficult year-over-year comparable. The prior-year period had seen bulk ordering ahead of the initial COVID-19 surge as well as a higher level of COVID-related restrictions and elective procedure deferrals. Further, the OEM business continued to see a lagged impact related to COVID recovery.
Key Picks
A few better-ranked stocks from the broader medical space are Envista Holdings Corporation (NVST - Free Report) , Inogen, Inc (INGN - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.
Envista Holdings has an estimated long-term earnings growth rate of 26%.
Inogen has an estimated long-term earnings growth rate of 33%.
IDEXX Laboratories has a projected long-term earnings growth rate of 20%.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>