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Pennsylvania-based Teleflex Incorporated (TFX) is a global medical technology company specializing in the design, development, manufacturing, and supply of single-use medical devices for critical care and surgical applications. With a market capitalization of $8.4 billion, the company excels in areas such as vascular access, interventional cardiology, anesthesia, and urology, catering to a diverse customer base. Teleflex is set to release its fiscal fourth-quarter earnings for 2024 on Thursday, Feb. 27, before the market opens.
Ahead of the event, analysts expect TFX to report a profit of $3.86 per share on a diluted basis, up 14.2% from $3.38 per share in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in each of its last four quarterly reports. Its EPS of $3.49 in the recent quarter surpassed the consensus estimate by 3.3%.
For the fiscal year 2024, analysts expect TFX to report EPS of $13.98, up 3.4% from $13.52 in fiscal 2023. In 2025, its EPS is likely to grow 8.6% year over year to $15.18.
Shares of TFX have dropped 25.2% over the past 52 weeks, underperforming the S&P 500’s ($SPX) 25.3% gains and the Healthcare Select Sector SPDR Fund’s (XLV) 4.1% gains over the same time frame.
Despite a rise in demand for non-urgent medical procedures, macroeconomic headwinds have weighed on Teleflex’s performance, driving its stock to a 52-week low of $176.59 on Dec. 18, 2024. On a positive note, the company boasts a 48-year track record of consistent dividend payments.
TFX reported its Q3 earnings on Oct. 31, and shares dwindled 14.5% as it posted sales of $764.4 million, which missed expectations due to softness in its OEM segment and external disruptions, such as hurricane-related surgery cancellations and an IV saline shortage. The company also revised its annual revenue growth forecast downward, further dampening investor confidence.
Nevertheless, analysts’ consensus opinion on TFX stock is reasonably upbeat, with a “Moderate Buy” rating overall. Among the 12 analysts covering the stock, three advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, and seven give a “Hold.”
The average analyst price target for TFX is $238.90, indicating a potential upside of 32% from the current price levels.
