Teleflex Incorporated (NYSE:TFX) is scheduled to report Q3 earnings results before markets open for trading on October 29, 2020.
The company is expected to report earnings of $2.24/share on revenue of $618.2 million. The consensus earnings per share (EPS) of $2.24/share is based on a poll of 11 analysts and represents a decline in eps of −24.7% over the same quarter last year, when the company reported earnings of $2.97/share.
The revenue forecast of $618.2 million based on a poll of 11 analysts implies a year-over-year (YoY) decline in revenue of −4.6%. Last year the company reported $648.3 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $618.18 | $648.32 | −4.6% |
| EPS | $2.24 | $2.97 | −24.7% |
Earnings Call Trends
Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.
What are your expectations from Teleflex Incorporated for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q2, 2020 | $1.25 | $1.93 | 53.8% | Beat |
| Q1, 2020 | $2.24 | $2.72 | 21.7% | Beat |
| Q4, 2019 | $3.22 | $3.28 | 2.0% | Beat |
| Q3, 2019 | $2.75 | $2.97 | 8.1% | Beat |
| Q2, 2019 | $2.59 | $2.66 | 2.6% | Beat |
| Q1, 2019 | $2.17 | $2.24 | 3.3% | Beat |
| Q4, 2018 | $2.76 | $2.77 | 0.4% | Beat |
| Q3, 2018 | $2.42 | $2.52 | 4.3% | Beat |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 28, 2020, the stock price reacted by falling −7.0%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| July 30, 2020 | $400.99 | $373.10 | −7.0% | Decline |
| April 30, 2020 | $353.13 | $329.37 | −6.7% | Decline |
| February 20, 2020 | $395.14 | $370.40 | −6.3% | Decline |
| October 31, 2019 | $329.84 | $346 | 4.9% | Increase |
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.49, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.49 implies a 0.6% chance of earnings manipulation.
Fundamentals And Technical Analysis
Teleflex Incorporated is currently trading at $357.36/share, down −2.4% for the day. The company is trading at approximately 87.3% of its 52-week high of $409.27/share. The company’s stock price is down −4.2% since the last earnings report and down −1.2% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 46.38 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 34.68 and a forward P/E multiple of 35.42.
Teleflex Incorporated’s current share price also implies a price-to-book (P/B) multiple of 5.37. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Reported Fiscal Period Key | FY2020.Q2 |
| Period End Date | June 28, 2020 |
| Stock Price (Current) | $357.36 |
| P/E Ratio | 34.7x |
| P/E Ratio (Fwd) | 35.4x |
| PEG Ratio | 0.5 |
| Total Debt / Total Capital | 12.8% |
| Levered Free Cash Flow | $327.5 million |
| EV / EBITDA | 27.2x |
Teleflex Incorporated is a large-cap stock with a market capitalization of $16.623 billion and a total enterprise value of $18.551 billion. The company operates in the Healthcare sector and the Healthcare Equipment & Supplies industry.
Teleflex Incorporated designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. It provides vascular access products that comprise Arrow branded catheters and related devices, including catheter positioning systems for use in the administration of intravenous therapies, the measurement of blood pressure, and the withdrawal of blood samples through a single puncture site. The company also offers interventional products consist of various coronary catheters, structural heart therapies, and peripheral intervention and cardiac assist products that are used by interventional cardiologists and radiologists, and vascular surgeons; and Arrow branded catheters, Guideline and Trapliner catheters, the Manta Vascular Closure, and Arrow Oncontrol devices. It provides anesthesia products, such as airway and pain management products to support hospital, emergency medicine, and military channels; and surgical products, including metal and polymer ligation clips, and fascial closure surgical systems that are used in laparoscopic surgical procedures, percutaneous surgical systems, and other surgical instruments. The company also offers interventional urology product comprises the UroLift System, an invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia; and respiratory products, including oxygen and aerosol therapies, spirometry, and ventilation management products for use in various care settings. It provides urology products, such as catheters, urine collectors, and catheterization accessories and products for operative endourology; and bladder management for patients in the hospital and individuals in the home care markets. The company serves hospitals and healthcare providers, medical device manufacturers, and home care markets. The company was founded in 1943 and is headquartered in Wayne, Pennsylvania.
