Teleflex Incorporated Reports Steady Growth for 2023, Forecasts Moderate 2024 Outlook

Teleflex Incorporated

WAYNE, PA — Despite facing a year of logistical and economic challenges, Teleflex Incorporated (NYSE: TFX) demonstrated resilience with its recently released financial results for the fourth quarter and full year ending December 31, 2023.

In the face of fewer shipping days in the final quarter of 2023, Teleflex reported revenues of $773.9 million, marking an increase of 2.1% compared to the same period in the previous year. This growth was relatively modest at 0.7% on a constant currency basis. The company’s GAAP diluted earnings per share (EPS) from continuing operations stood at $0.66, down from $1.65 in the prior year period. However, the adjusted diluted EPS from continuing operations was $3.38, compared to $3.52 in the same period of the previous year.

For the full fiscal year 2023, Teleflex reported increased revenues of $2,974.5 million, a 6.6% rise year-over-year, or a 6.5% rise on a constant currency basis. Over the year, the company’s GAAP diluted EPS from continuing operations was $7.56, slightly down from $7.67 in the previous year. However, the adjusted diluted EPS from continuing operations rose to $13.52, up from $13.06 in the prior year.

“We demonstrated solid execution during the fourth quarter against a stable to improving macro-environment,” said Liam Kelly, Teleflex’s Chairman, President, and Chief Executive Officer. “We once again built upon Teleflex’s growth objectives which resulted in 6.5% constant currency revenue growth for 2023.”

The company’s growth strategy included expanding its geographic presence, launching new products, driving efficiencies throughout the business, and advancing its capital allocation strategy. A key milestone was the acquisition of Palette Life Sciences AB in October 2023, which has been integrated smoothly into the business.

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Looking at additional financial highlights, Teleflex reported a depreciation expense, amortization of intangible assets, and deferred financing charges totaling $245.5 million for 2023, compared to $234.6 million for the previous year. At the end of 2023, the company had cash and cash equivalents of $222.8 million, down from $292.0 million at the end of 2022. Net accounts receivable were $443.5 million, up from $408.8 million, and inventories were $626.2 million, compared to $578.5 million at the end of 2022.

Moving ahead, Teleflex has provided guidance for 2024. On a GAAP basis, the company expects full-year revenue growth of 3.60% to 4.60%, factoring in an estimated negative impact of foreign exchange rate fluctuations of approximately 0.15%. On a constant currency basis, the company predicts revenue growth of 3.75% to 4.75% year-over-year.

Teleflex also projects full-year 2024 GAAP diluted EPS from continuing operations of $5.69 to $6.09, marking a decrease of 24.7% to 19.4%. But the company expects full-year 2024 adjusted diluted earnings per share from continuing operations of $13.55 to $13.95, representing growth of 0.2% to 3.2% year-over-year.

These results spotlight Teleflex’s steady performance throughout the year 2023, showcasing resilience and adaptability in the face of challenges. Looking forward to 2024, a picture of moderate growth emerges, despite facing headwinds from logistical challenges and foreign exchange impacts. However, the company remains resolute in its commitment to executing its growth strategy effectively and ensuring the delivery of value to its shareholders.

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