BOSTON (Thomson Financial) - Shares of Teleflex Inc. slipped Friday after
the Limerick, Pa.-based engineered products manufacturer reported a
weaker-than-expected fourth-quarter earnings, highlighted by below-consensus
2008 guidance.
The stock slid 4.7% to $57.91 on volume of 321,000 shares, just shy of the
issue's 30-day average volume of 329,500 shares.
Late Thursday, Teleflex reported fourth-quarter income from continuing
operations, excluding special items, of $28.1 million, or 71 cents a share,
below the consensus among three Wall Street analysts of 77 cents a share.
Although revenue from continuing operations rose 30% to $583.1 million from
$448.8 million a year earlier, the company noted a 9% decline in core revenue
growth versus the year-ago period which included an additional week.
Teleflex also reaffirmed its full-year earnings guidance of $3.70 to $3.90 a
share, shy of the mean estimate of three analysts polled by Thomson Financial
for earnings of $3.96 a share.
In a recent note to clients, Wachovia dropped coverage of the stock with a
final rating of underperform, noting its belief that information technology
system implementation in Teleflex's medical segment could continue to penalize
results.
The brokerage also said Teleflex overpaid for Arrow International Inc.,
which it acquired for $2 billion. Arrow is a $482 million provider of
catheter-based access and therapeutic products for critical care, which Teleflex
expected to be earnings neutral in 2008.
"In our view, management overpaid for Arrow, a business in which low-
to-mid-single-digit revenue growth could be the norm," Wachovia concluded.
Greg Saulnier
gs/gs/vj
COPYRIGHT
Copyright Thomson Financial News Limited 2007. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|