Core Insights - Teleflex Incorporated (TFX) reported first-quarter 2025 adjusted earnings per share (EPS) of $2.91, a decrease of 9.3% year-over-year, but exceeded the Zacks Consensus Estimate by 1% [1] - The company's net revenues fell 5% year-over-year to $700.7 million, surpassing the Zacks Consensus Estimate by 0.2% [2] Revenue Breakdown - Revenues in the Americas segment were $475.7 million, down 3.7% year-over-year [3] - EMEA segment revenues decreased 5.3% year-over-year to $151.2 million [3] - Asia segment revenues fell 12.8% to $73.8 million [4] Product Revenue Performance - Vascular Access segment revenues increased by 1.9% year-over-year to $182.4 million [5] - Interventional business revenues rose 3.2% year-over-year to $137.5 million [5] - Anesthesia segment revenues decreased 8.6% year-over-year to $86.6 million [6] - Surgical segment revenues increased by 2% year-over-year to $105.8 million [6] - Interventional Urology segment revenues fell 10.7% year-over-year to $71 million [6] - OEM revenues decreased by 26.8% year-over-year to $63.9 million [7] - Other product segment revenues increased by 4.5% year-over-year to $53.5 million [7] Margin and Profitability - Gross profit was $389.4 million, down 6.4% year-over-year, with a gross margin of 55.6%, a contraction of 82 basis points [8] - Adjusted operating profit was $130.3 million, down 4.2% year-over-year, but the adjusted operating margin expanded by 17 basis points to 18.6% [9] Liquidity and Cash Flow - Teleflex ended Q1 2025 with cash and cash equivalents of $284.1 million, down from $290.2 million at the end of Q4 2024 [10] - Net cash flow from operating activities was $73.3 million, compared to $112.8 million in the prior year [11] Updated Guidance - The company now expects GAAP revenue growth for 2025 to be in the range of 1.28-2.28%, revised from a prior guidance of a decline of 0.4% to growth of 0.7% [12] - Adjusted EPS guidance for 2025 is now projected to be between $13.20 and $13.60, down from the previous range of $13.95 to $14.35 [12] Strategic Developments - Teleflex has entered into an agreement to acquire the Vascular Intervention business of BIOTRONIK SE & Co. KG, which will enhance its product portfolio and market presence [15] - The acquisition includes a range of vascular intervention devices, positioning the company for continued growth [15]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Teleflex Incorporated due to allegations of materially misleading business information issued by the company [1]. Group 1: Investigation Details - The investigation is prompted by a significant drop in Teleflex's stock price, which fell by 21.6% on February 27, 2025, following the announcement of a company split and a €760 million deal with Biotronik [3]. - Shareholders who purchased Teleflex securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2]. Group 2: Legal Representation - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting their own success in recovering hundreds of millions for investors [4]. - The firm has been recognized for its leadership in securities class action settlements, achieving the largest settlement against a Chinese company at the time and ranking highly in the number of settlements since 2013 [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Teleflex Incorporated due to allegations of materially misleading business information issued by the company [1]. Group 1: Investigation and Class Action - Shareholders who purchased Teleflex securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2]. - The Rosen Law Firm is preparing a class action to seek recovery of investor losses related to Teleflex [2]. Group 2: Stock Performance and Company News - On February 27, 2025, Teleflex's stock fell by 21.6% following the announcement of a plan to split the company and acquire cardiovascular device assets from Biotronik [3]. - The announcement was made during market hours and was reported by Fierce Biotech [3]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time [4]. - The firm has been ranked No. 1 for the number of securities class action settlements in 2017 and has consistently ranked in the top 4 since 2013, recovering hundreds of millions for investors [4]. - In 2019, the firm secured over $438 million for investors, showcasing its effectiveness in litigation [4].

Core Viewpoint - The Schall Law Firm is investigating Teleflex Incorporated for potential violations of securities laws, particularly regarding misleading statements and undisclosed information that may have affected investors [1][2]. Group 1: Investigation Details - The investigation centers on whether Teleflex issued false or misleading statements or failed to disclose critical information to investors [2]. - A significant event triggering the investigation was an article published by Fierce Biotech on February 27, 2025, which reported Teleflex's plan to split its business into two independent companies and acquire a new portfolio of cardiovascular device assets from Biotronik [2]. - Following the announcement of the business split and acquisition, Teleflex's shares experienced a sharp decline of 21.6% on the same day [2]. Group 2: Legal Representation - The Schall Law Firm is reaching out to shareholders who may have suffered losses and encourages them to discuss their rights [3]. - The firm specializes in securities class action lawsuits and shareholder rights litigation, representing investors globally [3].

Core Insights - Teleflex reported revenue of $700.67 million for the quarter ended March 2025, a decrease of 5% year-over-year, with EPS at $2.91 compared to $3.21 in the same quarter last year, indicating a slight revenue surprise of +0.22% over the Zacks Consensus Estimate and an EPS surprise of +1.04% [1] Financial Performance - Revenue breakdown shows significant geographic performance: - Americas: $475.70 million, exceeding the estimated $418.41 million, reflecting a +17.1% year-over-year change - Asia: $73.80 million, below the estimated $77.13 million - EMEA: $151.20 million, slightly below the estimated $154.16 million [4] - Net revenues in key segments: - Interventional: $137.50 million, close to the estimated $137.85 million, with a +2.1% year-over-year change - Interventional Urology: $71 million, above the estimated $69.11 million, but down -10.9% year-over-year - OEM: $63.90 million, below the estimated $70.27 million, down -27.1% year-over-year - Vascular Access: $182.40 million, slightly above the estimated $178.12 million, with a +0.6% year-over-year change - Anesthesia: $86.60 million, below the estimated $92.40 million, down -10.2% year-over-year - Other: $53.50 million, above the estimated $49.30 million, with a +2.1% year-over-year change - Surgical: $105.80 million, above the estimated $102.08 million, with a +0.3% year-over-year change [4] Market Performance - Teleflex shares have returned -3.1% over the past month, compared to the Zacks S&P 500 composite's -0.7% change, indicating underperformance relative to the broader market [3]

Financial Data and Key Metrics Changes - For Q1 2025, Teleflex reported revenues of $700.7 million, a decrease of 5% year over year on a GAAP basis and a decline of 3.8% on an adjusted constant currency basis, which was within the guidance range of -3% to -4% [5][27] - Adjusted earnings per share (EPS) for the first quarter was $2.91, reflecting a 9.3% decrease year over year [5][25] - Adjusted gross margin was 60.4%, a 70 basis point decrease compared to the prior year, primarily due to cost inflation and unfavorable product mix [23] - Adjusted operating margin was 24.7%, a decline of 190 basis points year over year [23] Business Line Data and Key Metrics Changes - **Americas**: Revenues were $475.7 million, a 3.2% decrease year over year, impacted by OEM declines and challenges in the UroLift office site [6][7] - **EMEA**: Revenues decreased by 2.8% year over year to $151.2 million, with strong performance in Surgical and Vascular Access offset by anesthesia [8] - **Asia**: Revenues were $73.8 million, a 9.7% decrease year over year, in line with expectations due to volume-based procurement in China [9] - **Vascular Access**: Revenue increased by 1.9% year over year to $182.4 million, driven by growth in PICCs [9] - **Interventional**: Revenue was $137.5 million, an increase of 3.2% year over year, led by growth in complex catheters [10] - **Anesthesia**: Revenue decreased by 8.6% year over year to $86.6 million, impacted by tough comps in military orders [11] - **Surgical**: Revenue increased by 2% year over year to $105.8 million, with solid underlying trends [12] - **OEM**: Revenue decreased by 26.8% year over year to $63.9 million, primarily due to a lost customer contract [12] Market Data and Key Metrics Changes - The company experienced softness in orders in EMEA during Q1, which has since recovered in April [5] - The Asia market faced challenges due to volume-based procurement, but sequential quarterly revenue improvement is expected through the remainder of 2025 [9] Company Strategy and Development Direction - Teleflex announced plans to separate into two independent publicly traded companies to enhance shareholder value, with significant inbound interest in acquiring NewCo [18][19] - The acquisition of BioTronix's Vascular Intervention business is on track to close by the end of Q3 2025, expected to enhance Teleflex's portfolio in the cath lab [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the headwinds faced in Q1, including OEM business pressures and UroLift declines, are expected to be transitory [35] - The company anticipates sequential improvement in revenue from China and expects to navigate tariff impacts through various mitigation strategies [30][31] Other Important Information - The company has initiated an accelerated share repurchase program, completing it in April 2025, which returned capital to shareholders [26] - The updated financial guidance for 2025 includes adjusted constant currency revenue growth expectations of 1% to 2% and adjusted EPS in the range of $13.2 to $13.6 [27][31] Q&A Session Summary Question: Has there been any incremental demand on the OEM side of the business? - Management noted a pickup in demand within the OEM business as the quarter progressed, indicating base demand rather than supply chain issues [42][43] Question: Can you provide more details on the $55 million tariff impact? - The $55 million figure reflects current tariffs and does not include any mitigation strategies. Management is exploring various strategies to mitigate tariff impacts [47][49] Question: What is the interest level in NewCo? - There is significant interest in NewCo, with a healthy mix of both strategic and private equity interest, and the company is open to exploring all options to maximize shareholder value [60][76] Question: How will tariffs impact RemainCo and SpinCo? - Management indicated that tariffs will impact both entities, but specifics will be discussed closer to the separation date [82] Question: What are the early views on cost and revenue synergies from BioTronix? - The focus will be on leveraging the BioTronix channel in Europe and the Teleflex channel in the Americas to drive revenue growth [84]

Teleflex (TFX) came out with quarterly earnings of $2.91 per share, beating the Zacks Consensus Estimate of $2.88 per share. This compares to earnings of $3.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.04%. A quarter ago, it was expected that this medical equipment maker would post earnings of $3.86 per share when it actually produced earnings of $3.89, delivering a surprise of 0.78%.Over the last four quarters, the co ...

Financial Data and Key Metrics Changes - Teleflex reported Q1 2025 revenues of $700.7 million, a 5% decrease year over year on a GAAP basis, and a decline of 3.8% on an adjusted constant currency basis, which was within the guidance range of -3% to -4% [6][24] - Adjusted earnings per share (EPS) for the first quarter was $2.91, reflecting a 9.3% decrease year over year [6][24] - Adjusted gross margin was 60.4%, a 70 basis point decrease compared to the prior year, primarily due to cost inflation and unfavorable product mix [22] - Adjusted operating margin was 24.7%, a 190 basis point decline year over year [22] Business Line Data and Key Metrics Changes - **Americas**: Revenues were $475.7 million, a 3.2% decrease year over year, impacted by OEM declines and challenges in the UroLift service [7] - **EMEA**: Revenues decreased 2.8% year over year to $151.2 million, with strong performance in Surgical and Vascular Access offset by anesthesia [8] - **Asia**: Revenues were $73.8 million, a 9.7% decrease year over year, in line with expectations due to volume-based procurement impacts [8] - **Vascular Access**: Revenue increased 1.9% year over year to $182.4 million, driven by growth in PICCs [9] - **Interventional**: Revenue was $137.5 million, an increase of 3.2% year over year, led by strong demand for intra-aortic balloon pumps [10] - **Anesthesia**: Revenue decreased 8.6% year over year to $86.6 million, with growth in endotracheal tubes offset by declines in military orders [11] - **Surgical**: Revenue increased 2% year over year to $105.8 million, with solid underlying trends [11] - **Interventional Urology**: Revenue decreased 10.7% year over year to $71 million, with strong growth in BarriGel but pressure on UroLift [12] - **OEM**: Revenue decreased 26.8% year over year to $63.9 million, impacted by a lost customer contract [12] Market Data and Key Metrics Changes - The company experienced softness in orders in EMEA during Q1, which has since recovered in April [6] - The China business is expected to see sequential quarterly revenue improvement through the remainder of 2025 [9] Company Strategy and Development Direction - Teleflex announced plans to separate into two independent publicly traded companies to enhance shareholder value, with significant inbound interest in acquiring NewCo [17][18] - The acquisition of BioTronix Vascular Intervention business is on track to close by the end of Q3 2025, expected to enhance Teleflex's portfolio in the cath lab [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter evolved largely as expected, with specific headwinds anticipated to be transitory [33] - The company expects 2025 adjusted constant currency revenue growth of 1% to 2%, with an updated guidance range for reported revenue growth [26] - Tariffs are expected to impact 2025 results, with an estimated $55 million headwind, primarily associated with China and Mexico [28][29] Other Important Information - The company is actively exploring strategies to mitigate tariff exposure, including optimizing the supply chain and increasing the mix of USMCA compliant products [29][30] - The company has implemented thoughtful spending controls to offset tariff impacts [53] Q&A Session Summary Question: Has there been any incremental demand on the OEM side due to supply chain issues? - Management noted a pickup in demand within the OEM business, indicating base demand rather than supply chain issues [41] Question: Can you provide more details on the $55 million tariff impact and mitigation strategies? - Management explained that the $55 million is based on current tariffs and does not include mitigation strategies, which are being explored [46][52] Question: What is the interest level in NewCo, and is there a preference for a sale versus a spin? - Management indicated significant interest in NewCo, with a parallel process for both spin and sale being pursued [59][64] Question: How does the tariff impact split between RemainCo and SpinCo? - Management stated that the impact of tariffs will affect both entities, but specifics will be discussed closer to the separation date [81] Question: What are the early views on cost and revenue synergies from the BioTronix acquisition? - Management highlighted the opportunity to leverage BioTronix's channel in Europe and Teleflex's channel in the Americas for revenue growth [84]

Financial Data and Key Metrics Changes - Teleflex reported revenues of $700.7 million for Q1 2025, a decrease of 5% year over year on a GAAP basis and a decline of 3.8% on an adjusted constant currency basis, which was within the guidance range of -3% to -4% [5][6] - Adjusted earnings per share (EPS) for the first quarter was $2.91, reflecting a 9.3% decrease year over year [5][26] - Adjusted gross margin was 60.4%, a 70 basis point decrease compared to the prior year, primarily due to cost inflation and unfavorable product mix [23] - Adjusted operating margin was 24.7%, a decline of 190 basis points year over year [23] Business Line Data and Key Metrics Changes - **Americas Revenues**: $475.7 million, a 3.2% decrease year over year, impacted by OEM declines and challenges in the UroLift office site [6] - **EMEA Revenues**: $151.2 million, down 2.8% year over year, with strong performance in Surgical and Vascular Access offset by anesthesia [7] - **Asia Revenues**: $73.8 million, a 9.7% decrease year over year, in line with expectations due to volume-based procurement in China [7][8] - **Vascular Access**: Revenue increased 1.9% year over year to $182.4 million, driven by growth in PICCs [8] - **Interventional**: Revenue was $137.5 million, an increase of 3.2% year over year, led by growth in complex catheters [9] - **Anesthesia**: Revenue decreased 8.6% year over year to $86.6 million, with growth in endotracheal tubes offset by tough comps [11] - **Surgical**: Revenue increased 2% year over year to $105.8 million, with solid underlying trends [12] - **OEM Revenue**: Decreased 26.8% year over year to $63.9 million, impacted by a lost customer contract [12] Market Data and Key Metrics Changes - The company experienced softness in orders in EMEA during Q1, which has since recovered in April [5] - The China business is expected to see sequential quarterly revenue improvement through the remainder of 2025 [8] Company Strategy and Development Direction - Teleflex announced plans to separate into two independent publicly traded companies to enhance shareholder value, with significant inbound interest in acquiring NewCo [18][19] - The acquisition of BioTronix Vascular Intervention business is on track to close by the end of Q3 2025, expected to enhance Teleflex's portfolio in the cath lab [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter evolved largely as expected, with specific headwinds anticipated to be transitory [35] - The company expects to return to growth and create shareholder value despite current challenges, including tariffs and customer contract losses [35][36] - Adjusted EPS guidance for 2025 has been revised to a range of $13.2 to $13.6, reflecting headwinds from tariffs and other factors [31] Other Important Information - The company is actively exploring strategies to mitigate tariff exposure, including optimizing the supply chain and increasing the mix of USMCA compliant products [31][32] - The total addressable global market for treating coronary vessel perforation is estimated to exceed $80 million, highlighting growth opportunities in the vascular intervention space [21] Q&A Session Summary Question: Has there been any incremental demand on the OEM side of the business? - Management noted a pickup in demand within the OEM business, with order rates improving as the quarter progressed [43][44] Question: Can you provide more details on the $55 million tariff impact? - The $55 million figure reflects current tariffs and does not include mitigation strategies. Management is exploring various strategies to mitigate the impact [48][52] Question: Is there significant interest in NewCo? - There is a healthy mix of interest from both strategic and private equity firms, with a focus on maximizing shareholder value [73][87] Question: How is the interventional urology business performing? - The interventional urology business is performing in line with expectations, with strong growth in the Palette product [100][101]

Teleflex Incorporated First Quarter 2025 Earnings Conference Call 5/1/2025 Conference Call Logistics The release, accompanying slides, and replay webcast are available online at www.teleflex.com (click on Investors) An audio replay of the call will be available beginning at 11:00 am Eastern Time on May 1, 2025 either on the Teleflex website or by telephone. The call can be accessed by dialing 1 800 770 2030 (U.S.) or 1 609 800 9909 (all other locations). The confirmation code is 69028. Today's Speakers Liam ...