(Reuters) – Surgical equipment maker Teleflex reported a better-than-expected profit for the third quarter on Thursday, helped by strong demand for its medical devices.
Robust demand for non-urgent procedures, especially among older adults, have kept investor expectations heightened around the performance of medical device makers over the past year.
Peers such as Boston Scientific and Stryker have raised their full-year profit forecasts on resilient demand.
Teleflex, which makes types of catheters and pumps, reported a 2.4% rise in third-quarter revenue to $764.4 million, but missed analysts’ estimate of $769.6 million, according to data compiled by LSEG.
CEO Liam Kelly said strong sales of the company’s bloodstream-related products as well as its heart and medical imaging devices helped offset some “unexpected softness” in OEM revenues.
Sales at the vascular access segment, through which Teleflex makes medical devices for bloodstream-related procedures, rose 6.5% to $180.9 million.
The OEM segment, which designs and manufactures instruments for other medical device makers, reported a marginal rise in sales to $82.6 million.
On an adjusted basis, the company earned $3.49 per share in the quarter ended Sept. 30, beating estimates of $3.39 per share.
Teleflex now expects its annual revenue to grow between 2.9% and 3.4%, down from 3.4% to 4.4% growth previously expected.
The Wayne, Pennsylvania-based company also raised the lower end of its 2024 adjusted per-share profit forecast to $13.90 from $13.80 previously, while keeping the upper end at $14.20.
(Reporting by Puyaan Singh in Bengaluru; Editing by Shilpi Majumdar)
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