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Last week, you might have seen that Teleflex Incorporated (NYSE:TFX) released its quarterly result to the market. The early response was not positive, with shares down 6.5% to US$126 in the past week. Revenues were US$701m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$2.07 were also better than expected, beating analyst predictions by 19%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
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After the latest results, the 14 analysts covering Teleflex are now predicting revenues of US$3.10b in 2025. If met, this would reflect a modest 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 152% to US$8.54. In the lead-up to this report, the analysts had been modelling revenues of US$3.06b and earnings per share (EPS) of US$9.37 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
See our latest analysis for Teleflex
It might be a surprise to learn that the consensus price target was broadly unchanged at US$156, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Teleflex analyst has a price target of US$200 per share, while the most pessimistic values it at US$135. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 4.0% growth on an annualised basis. That is in line with its 4.0% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 8.1% annually. So it's pretty clear that Teleflex is expected to grow slower than similar companies in the same industry.