Teleflex Q3 2020 Earnings Report
Key Takeaways
Teleflex reported a 3.1% decrease in third quarter revenue to $628.3 million compared to the prior year. GAAP EPS decreased by 49.3% to $2.46, while adjusted diluted EPS decreased by 6.7% to $2.77. The company noted a negative impact of approximately $78 million due to COVID-19.
Third quarter revenues were $628.3 million, a 3.1% decrease year-over-year, or 4.1% on a constant currency basis.
GAAP diluted EPS from continuing operations was $2.46, compared to $4.85 in the prior year period.
Adjusted diluted EPS from continuing operations was $2.77, a 6.7% decrease year-over-year.
The company estimates COVID-19 had a net negative impact to revenue of approximately $78 million, or 12%.
Teleflex
Teleflex
Teleflex Revenue by Segment
Teleflex Revenue by Geographic Location
Forward Guidance
Teleflex anticipates continued sequential improvement during the fourth quarter of 2020 compared to the third quarter results. The acquisition of Z-Medica is expected to be accretive to adjusted earnings per share in 2021.
Positive Outlook
- Continued sequential improvement expected during the fourth quarter of 2020 compared to the third quarter results.
- Acquisition of Z-Medica is expected to be accretive to adjusted earnings per share in 2021.
- Revenue growth
- Gross margin profile
- Operating margin profile
Challenges Ahead
- Adverse economic conditions associated with the COVID-19 global health pandemic
- Financial crisis
- Stay-at-home and other orders, which may significantly reduce customer spending
- Changes in business relationships with and purchases by or from major customers or suppliers
- Delays or cancellations in shipments
Revenue & Expenses
Visualization of income flow from segment revenue to net income