On Mar 25, Zacks Investment Research upgraded
) to a Zacks Rank #2 (Buy) from a Zacks Rank #3 (Hold).
Why the Upgrade?
Teleflex has been witnessing rising estimate revisions over the
past 60 days with two upward estimate revisions and no downward
revision for 2014. The upward estimate revisions led to a 0.5%
rise in Zacks Consensus Estimate to $5.52 per share for the year
over the same time frame. Moreover, the company delivered
positive earnings surprises in all of the last four quarters with
an average beat of 8.6%.
This leading global provider of medical devices for critical care
and surgery reported impressive fourth-quarter 2013 results and a
promising 2014 guidance on Feb 21, 2014, subsequent to which its
shares adopted an upward trend. Shares of Teleflex also hit a new
52-week high of $106.22 in mid-day trading on Mar 21.
Teleflex recently announced receiving the 510(k) clearance from
the U.S. Food and Drug Administration (FDA) for its restated
Indications for Use of the EZ-IO Vascular Access System. The
Vascular Access System has been developed by Vidacare
Corporation, acquired by Teleflex in December last year.
For the fourth quarter of 2013, Teleflex posted adjusted earnings
of $1.36 per share (up 18.6% year over year) which comfortably
beat the Zacks Consensus Estimate of $1.27. Net revenue grew 7.5%
to $450.5 million, exceeding the Zacks Consensus Estimate of $436
Teleflex is using mergers & acquisitions (M&A) to build
out a diverse critical care business. The acquisitions of LMA
International in Oct 2012 and Vidacare Corporation in Dec 2013
made significant contributions to revenue growth in the fourth
Furthermore, Teleflex reported a 50 basis points improvement in
its fourth quarter operating margin of 7.8% due to management's
focus on operating cost improvement.
For 2014, Teleflex provided revenue growth estimate in the range
of 6-8% and adjusted earnings per share guidance in the range of
$5.35-$5.55. The current Zacks Consensus Estimate of $5.49 lies
within the guided range.
An encouraging guidance, increased M&A activity and stronger
operating leverage represent a potential upside for Teleflex
Other Stocks to Consider
Some other stocks worth reckoning in the medical instruments
Syneron Medical Ltd.
Delcath Systems, Inc.
). All the three stocks carry a Zacks Rank #1 (Strong Buy).
CYNOSURE INC-A (CYNO): Free Stock Analysis
DELCATH SYS INC (DCTH): Free Stock Analysis
SYNERON MED LTD (ELOS): Free Stock Analysis
TELEFLEX INC (TFX): Free Stock Analysis
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