Teleflex (TFX) saw its shares plunge 5.48% in early trading on Thursday, despite reporting first-quarter earnings that surpassed analysts' expectations. The medical device maker's stock took a hit as investors focused on the company's conservative full-year 2025 outlook and potential headwinds.
For the first quarter, Teleflex reported adjusted earnings per share of $2.91, beating the IBES estimate of $2.87. Revenue came in at $700.7 million, slightly above the expected $699.3 million. However, the company's full-year guidance seemed to disappoint the market. Teleflex projects adjusted EPS from continuing operations to be in the range of $13.20 to $13.60 for 2025, with revenue growth expected between 1.28% and 2.28%.
Adding to investor concerns, Teleflex disclosed that it anticipates an impact of approximately $55 million from tariffs in 2025, which could pressure margins. On a more positive note, the company mentioned receiving significant third-party interest in acquiring Newco, potentially its spin-off or subsidiary, which could provide some strategic options moving forward. Despite these mixed signals, the market's immediate reaction suggests that investors are focusing more on the challenges ahead rather than the company's recent performance.
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