(Reuters) – Teleflex beat third quarter profit estimates on Thursday as volumes of non-urgent surgical procedures picked up in hospitals post pandemic, lifting demand for its medical devices.
Teleflex joined a list of companies that have benefited from a recent boost to medical technology businesses, including larger rivals Abbott Laboratories and Boston Scientific that also beat profit expectations driven by the post-pandemic demand for medical devices.
The manufacturer for hospital supplies and single-use medical devices reported an 8.7% rise in revenue to $746.4 million for the quarter ended Oct. 1, higher than analysts’ estimate of $733.6 million, according to LSEG data.
Teleflex, which is seeking to expand its urinary and reproductive health portfolio, said it had completed the acquisition of privately held Palette Life Sciences AB, after striking a deal in July for an upfront cash payment of $600 million.
The Wayne, Pennsylvania-based company narrowed and raised its adjusted profit forecast for the year to $13.30 to $13.50 per share, compared with its prior range of $13.00 to $13.60 per share.
CEO Liam Kelly said the updated guidance included the expected contribution from the Palette acquisition.
Teleflex’s interventional segment, which focuses on heart and medical imaging devices, reported sales of $134.1 million, beating estimates of $120 million.
The company’s vascular access business, its largest segment that makes medical devices for bloodstream related procedures, posted a revenue of $169.9 million, missing estimates of $180.7 million.
On an adjusted basis, Teleflex reported a profit of $3.64 per share, topping analysts’ average estimate of $3.27 per share.
(Reporting by Christy Santhosh; editing by Milla Nissi)
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