Teleflex beats quarterly profit estimates on robust medical devices demand

Teleflex Incorporated

31/10/2024 11:31

Oct 31 (Reuters) - Surgical equipment maker Teleflex
 TFX.N  reported a better-than-expected profit for the third
quarter on Thursday, helped by strong demand for its medical
devices.
    Robust demand for non-urgent procedures, especially among
older adults, have kept investor expectations heightened around
the performance of medical device makers over the past year.
    Peers such as Boston Scientific  BSX.N  and Stryker  SYK.N 
have raised their full-year profit forecasts on resilient
demand.
    Teleflex, which makes types of catheters and pumps, reported
a 2.4% rise in third-quarter revenue to $764.4 million, but
missed analysts' estimate of $769.6 million, according to data
compiled by LSEG.
    CEO Liam Kelly said strong sales of the company's
bloodstream-related products as well as its heart and medical
imaging devices helped offset some "unexpected softness" in OEM
revenues. 
    Sales at the vascular access segment, through which Teleflex
makes medical devices for bloodstream-related procedures, rose
6.5% to $180.9 million.     
    The OEM segment, which designs and manufactures instruments
for other medical device makers, reported a marginal rise in
sales to $82.6 million.
    On an adjusted basis, the company earned $3.49 per share in
the quarter ended Sept. 30, beating estimates of $3.39 per
share.
    Teleflex now expects its annual revenue to grow between 2.9%
and 3.4%, down from 3.4% to 4.4% growth previously expected.
    The Wayne, Pennsylvania-based company also raised the lower
end of its 2024 adjusted per-share profit forecast to $13.90
from $13.80 previously, while keeping the upper end at $14.20.

 (Reporting by Puyaan Singh in Bengaluru; Editing by Shilpi
Majumdar)
 ((Puyaan.Singh@thomsonreuters.com))