Teleflex Incorporated

Teleflex had a mixed quarter with revenues of $758 million that was below Wall Street expectations given a year-over-year fall of 0.5%. However, the company delivered an earnings beat. Despite an unanticipated subcomponent supply chain issue in their Surgical business, their fourth quarter constant currency revenue growth remained steady. Teleflex’s Interventional, Surgical, and OEM product categories produced double-digit constant currency year-over-year revenue increase. The company also saw better sequential monthly growth, with December being the highest month of the quarter as healthcare utilization keeps normalizing. Inflation in raw materials and issues with the supply chain continued to be obstacles for the company in the fourth quarter. Tyvek is still in short supply, which particularly affects their interventional and vascular companies. Their Surgical business also had a solid performance with 10.4% year-over-year growth. In addition, Teleflex completed the Standard Bariatrics acquisition. The company also disclosed that it had been granted a collective purchasing arrangement with Premier for the Titan Stapler. With the help of the partnership, surgeons connected to Premier will have access to the Titan Stapler, a cutting-edge tool for gastric sleeve surgery. We give Teleflex a ‘Hold’ rating with a revised target price.