Results: Teleflex Incorporated Exceeded Expectations And The Consensus Has Updated Its Estimates

Last week saw the newest quarterly earnings release from Teleflex Incorporated (NYSE:TFX), an important milestone in the company's journey to build a stronger business. It looks like a credible result overall - although revenues of US$781m were what the analysts expected, Teleflex surprised by delivering a (statutory) profit of US$2.77 per share, an impressive 46% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the 13 analysts covering Teleflex are now predicting revenues of US$3.32b in 2025. If met, this would reflect a notable 9.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 83% to US$7.97. In the lead-up to this report, the analysts had been modelling revenues of US$3.14b and earnings per share (EPS) of US$8.40 in 2025. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a notable to revenue, the consensus also made a small dip in its earnings per share forecasts.

View our latest analysis for Teleflex

The analysts also cut Teleflex's price target 6.1% to US$141, implying that lower forecast earnings are expected to have a more negative impact than can be offset by the increase in revenue. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Teleflex analyst has a price target of US$200 per share, while the most pessimistic values it at US$120. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Teleflex's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Teleflex is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Teleflex. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Teleflex's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Teleflex going out to 2027, and you can see them free on our platform here.

Even so, be aware that Teleflex is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.