North Carolina-based medical equipment manufacturer Teleflex Incorporated (TFX, Financial) announced a net income of $50.6 million in quarter four ended Dec. 31, 2014. The quarter results exceeded street expectations.
Key figures for quarter four 2014
Revenue for the fourth quarter stood at $476 million, jumping by 5.7% in the same quarter in 2013 and slightly above the analyst estimation of $471.4 million. Teleflex reported $1.10 as the GAAP diluted EPS from continuing operations which is 41% higher than $0.78 reported in the last quarter of 2013. The company declared a profit of $1.07 per share. The adjusted diluted EPS stood at $1.43 per share. Analysts had estimated an average EPS of $1.39. Besides the domestic market, the company has declared net revenue of $146.9 million in Europe (EMEA) and $63.6 million from the Asian region. This is an increase of 1.5% and 7.4% respectively as compared to the quarter four of 2014.
Key figures the entire year
Teleflex reported 8.5% increase in its annual revenues to the tune of $1.84 billion and profit of $187.7 million which translated to an EPS of $4.04. The net revenue increased by 8.8%. Teleflex reported $4.10 as the GAAP diluted EPS for 2014. This is a hike of 18.5% since last year. The adjusted diluted EPS for the whole year stood at $5.74 which is a jump of 14.1% from last year. Teleflex reported $303.2 million in cash and cash equivalents as on Dec. 31, 2014. The company reported a decline here due to repayment of $235 million in repayment of a portion of the outstanding principal amount of borrowings under the revolving credit facility. As on Dec. 31, 2013 the cash and cash equivalent figure stood at $432 million. The net obligations stood at $801.4 million as on Dec. 31, 2014 against the net obligation figure of $902.7 million as on Dec 31, 2013. Losses and other charges accounted for $1.6 million, net of tax. In 2013 the figure was much higher standing at $4.5 million, net of tax.
Other important figures
The balance sheet showed $273.7 million in net accounts receivable as on year ended Dec 31, 2014. The figure stood at $295.3 million as on Dec 31, 2013. It also reflected net inventory of $335.6 million in December end against $333.6 million the year end prior to that.
Guidance for 2015
Teleflex has projected 4% to 6% earnings constant currency revenue growth for 2015. Although the Company has hinted at a negative impact of the currency movement on 2015 forecast but assured the investors of implementation of strategic operational measures to mitigate the effect.
Conclusion
The shares have moved up by 1% since the beginning of the year and the stock has risen 20% in the last twelve months. A year back the share was trading below the mark of $100 and today it has surpassed $120 mark. The company is showing its dissatisfaction over the negative impact of currency fluctuations but at the same time improved performance in some of its global operations across Canada, Europe, Asia Pacific and Latin America is balancing out the odds. The market has positive outlook towards Teleflex Incorporated. A consensus on a "Buy" or "Hold" sentiment has been prevailing in the market a few days before and after Friday’s announcement of quarter four and year end results. The company competes with CareFusion Corporation (CFN, Financial) and CR Bard Inc. (BCR, Financial) in the same space.
