Shares of Teleflex Incorporated (TFX) scaled a new 52-week high of $115.52 in mid-day trading on Nov 14. The company’s shares closed lower at $114.83 on the same day, translating into a healthy one-year return of roughly 21% and a year-to-date return of around 22%.
Teleflex has a market cap of around $4.8 billion. Average volume of shares traded over the last three months stands at roughly 0.2 million.
In the recently reported third-quarter 2014, Telefex posted double-digit year-over-year revenue and adjusted earnings growth. Adjusted earnings of $1.57 per share also outshined the Zacks Consensus Estimate of $1.37 while revenues of $457 million beat the Zacks Consensus Estimate of $448 million.
Teleflex’s revenues continue to be largely driven by synergies from the acquisition of Vidacare Corp. competed in Dec 2013. Higher sales volumes of existing products, new product launches as well as price increases also support the revenue expansion.
During the third quarter, Teleflex reported higher gross and operating margins, also led by synergies from Vidacare.
Based on the third-quarter performance, Teleflex raised its earnings and revenue guidance for 2014. Adjusted earnings per share are now projected in the band of $5.60–$5.70 as against the earlier expectation of $5.45–$5.60. The current Zacks Consensus Estimate of $5.70 coincides with the upper end of the guided range.
The company projects constant currency revenue growth in the range of 7.5–9%, higher than the prior guidance of 7–9%.
Currently, Teleflex carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the medical instruments industry include AngioDynamics (ANGO), Edwards Lifesciences Corp. (EW) and Fluidigm Corp. (FLDM). While AngioDynamics sports a Zacks Rank #1 (Strong Buy), both Edwards Lifesciences and Fluidigm carry a Zacks Rank #2 (Buy).
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