WAYNE, Pa., Oct. 16, 2025 (GLOBE NEWSWIRE) -- Teleflex Incorporated (NYSE:TFX) will host a conference call to discuss its third quarter financial results and provide an operational update at 8:00 a.m. Eastern Time on Thursday, November 6, 2025. To participate in the conference call, please utilize this link to pre-register and receive the dial-in information. The call can also be accessed through a live audio webcast on the company’s website, teleflex.com. An audio replay of the call will be available begin ...

Core Insights - Palm Valley Capital Fund reported a 2.35% appreciation in Q3 2025, underperforming the S&P SmallCap 600's 9.11% gain and the Morningstar Small Cap Total Return Index's 7.99% rise [1] - The Fund's cash equivalents increased from 73.5% to 74.1% during the quarter, reflecting a cautious investment strategy [1] - Small-cap stocks outperformed large caps due to expectations of Federal Reserve easing and reduced tariff concerns impacting corporate profits [1] Company Analysis: Teleflex Incorporated (NYSE:TFX) - Teleflex specializes in single-use medical devices, generating 92% of its revenue from critical care and surgical applications [3] - The stock experienced a one-month return of -2.61% and a significant 45.87% decline over the past 52 weeks, closing at $126.89 with a market cap of $5.608 billion on October 7, 2025 [2][3] - Recent challenges include short-term revenue weakness and investor uncertainty due to a large debt-financed acquisition and plans to split the business into two independent companies [3] - Despite these challenges, Teleflex is noted for its revenue stability, high operating margins, and strong free cash flow, with shares trading near record low valuations [3] Hedge Fund Interest - Teleflex was held by 43 hedge fund portfolios at the end of Q2 2025, an increase from 41 in the previous quarter [4] - The company reported revenues of $780.9 million in Q2 2025, marking a 4.2% year-over-year increase [4] - Comparatively, certain AI stocks are viewed as having greater upside potential and lower downside risk, suggesting a shift in investment focus among hedge funds [4]

Core Insights - The article compares Teleflex (TFX) and Penumbra (PEN) to determine which stock is more attractive to value investors [1] Valuation Metrics - Teleflex has a forward P/E ratio of 8.70, while Penumbra has a significantly higher forward P/E of 69.12 [5] - Teleflex's PEG ratio is 1.71, indicating a more favorable valuation compared to Penumbra's PEG ratio of 2.29 [5] - Teleflex's P/B ratio stands at 1.27, whereas Penumbra's P/B ratio is much higher at 7.66 [6] Zacks Rank and Earnings Outlook - Teleflex currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Penumbra has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, which favors Teleflex [3][7] Value Grades - Based on various valuation metrics, Teleflex has a Value grade of A, while Penumbra has a Value grade of D [6]

Group 1 - Teleflex Incorporated is recognized as one of the cheap healthcare stocks, specializing in critical care and surgical devices across various medical settings [2] - The company plans to separate into two independent publicly traded entities by 2026, with one focusing on Urology, Acute Care, and OEM businesses, while the other will concentrate on vascular access and surgical segments [3] - Teleflex is expanding its vascular intervention portfolio through a €760 million acquisition of Biotronik's vascular intervention business, expected to close by Q3 2025, which aims to enhance interventional care offerings and support revenue growth [4] Group 2 - The company reported strong Q2 2025 results, with revenues increasing by 4.2% to $780.9 million and an EPS of $3.73, indicating operational strength ahead of the planned split [4] - Innovation is a key focus for Teleflex, exemplified by the launch of the Barrigel Rectal Spacer in Japan, aimed at reducing long-term side effects of radiation therapy for prostate cancer [5]

Core Insights - The DUBSTENT DIABETES trial aims to evaluate a dual-device strategy for PCI in diabetic patients, combining drug-coated balloons and drug-eluting stents to address high stent failure rates in this population [2][3]. Group 1: Trial Overview - The trial will enroll 120 diabetic patients across high-volume centers in Ireland, comparing the combined approach to single-device strategies [3]. - The primary endpoint is percentage diameter stenosis at six months, with secondary endpoints including death, myocardial infarction, and quality of life assessed over five years [4]. Group 2: Company Commitment - Teleflex is committed to advancing evidence-based solutions for complex patient populations and supports the DUBSTENT DIABETES trial to potentially shape future treatment strategies for diabetic patients undergoing PCI [5].

Group 1 - The event is the Morgan Stanley Global Healthcare Conference, specifically on Day 2 [1] - Patrick Wood, MD of Equity Research, is leading the presentation [1] - Liam, the CEO of Teleflex, is participating in the conference [2]

Summary of Teleflex Conference Call Company Overview - **Company**: Teleflex - **Industry**: MedTech, specifically focusing on vascular and interventional products Key Points Business Reorganization and Separation - Teleflex is undergoing a strategic reorganization, planning to separate its business into SpinCo and RemainCo, with a focus on maximizing shareholder value [3][5] - The separation process is anticipated to be completed by mid-2026, whether through a spin-off or a sale [7][9] - There is significant inbound interest in the assets, with a majority of interest in the entirety of NewCo [6][7] Financial Strategy - Proceeds from a potential sale will be used to pay down debt and return capital to shareholders [9] - The company has established a data room and management teams for the separation process [4][5] Integration of BioTronic Vascular Business - The integration of BioTronic's vascular business is progressing well, with strong collaboration between teams [10][11] - Expected revenue contribution from BioTronic is over $200 million in the second half of the year, with $99 million in Q3 [12][47] - Positive sentiment among employees from both companies, with no significant attrition reported [13][14] Market Opportunities and Product Synergies - The combined market for the vascular business is estimated at $10 billion, with significant product and geographic synergies identified [16][19] - Specific product synergies include the use of Ringer and PK Papyrus for addressing emergency events in procedures, representing a $120 million market opportunity [17][18] - The integration is expected to enhance access to cath labs and improve sales effectiveness [19][22] Growth Projections - Teleflex anticipates a growth rate of approximately 6% for RemainCo, driven by innovation and market expansion [38][39] - The interventional business is expected to perform well, particularly with the introduction of new products and recovery from previous market challenges [46][47] Challenges and Market Dynamics - The company is navigating challenges in the BPH market due to past reimbursement changes, but recent proposed rules are encouraging for UroLift [67][69] - The impact of volume-based procurement in China is expected to be transitory, with the company having successfully navigated through this phase [54][57] Innovation and Future Products - Teleflex is focused on innovative products like Freesolve, a bioresorbable scaffold, which is currently undergoing clinical trials [28][32] - The company plans to hold an Investor Day to showcase BioTronic assets and innovations to the investment community [35] Operational Focus - The management emphasizes the importance of executing the separation, integrating BioTronic, and maintaining operational performance as key priorities [73][76] Additional Insights - The company is optimistic about the future growth of its vascular and interventional segments, leveraging synergies from the BioTronic acquisition and focusing on innovative product development [20][72] - The management team is actively engaging with stakeholders to ensure a smooth transition and capitalize on market opportunities [4][5][76]

Industry Overview - The Medical Instruments industry is experiencing a significant transformation due to the integration of generative AI (genAI), which is reshaping diagnostics, patient monitoring, and intervention workflows [1][4] - The FDA is implementing a Total Product Lifecycle (TPLC) oversight framework to enhance safety, transparency, and data integrity in the industry [1] Market Trends - The global AI in healthcare market is projected to grow at a CAGR of 38.5% from 2024 to 2030, despite facing geopolitical challenges such as tariffs and supply chain issues [2] - The generative AI market in healthcare was valued at $1.8 billion in 2023 and is expected to grow at a CAGR of 33.2% from 2024 to 2032 [4] - The diagnostics market is anticipated to grow at a CAGR of 24.6% by 2034, driven by advancements in AI applications [4] M&A Activity - The medical instruments sector is witnessing a surge in merger and acquisition (M&A) activity, with 305 transactions announced in 2024, totaling over $63.1 billion, a significant increase from 134 deals in 2023 [5] - Notable M&A transactions include UnitedHealth Group's $3.3 billion acquisition of Amedisys and Stryker's $4.9 billion purchase of Inari Medical [5] Financial Performance - The Zacks Medical Instruments industry has underperformed the S&P 500, declining 15.4% compared to the broader sector's decline of 17.4% [10] - The industry is currently trading at a forward P/E of 28.46X, higher than the broader industry's 19.32X and the S&P 500's 22.80X [12] Company Highlights - **Teleflex**: Expected 2025 sales of $3.33 billion, a 9.3% increase from 2024, with EPS projected at $14.06, indicating a 0.4% rise [18] - **Integer Holdings**: Anticipated 2025 sales of $1.87 billion, a 7.8% increase from 2024, with EPS expected to rise by 20.4% to $6.38 [22] - **Inogen**: Projected 2025 sales of $355.2 million, a 5.8% increase from 2024, with EPS expected to improve by 37.5% to a loss of 95 cents [26]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Teleflex (TFX) as a strong value stock based on various valuation metrics and its earnings outlook [2][3][8]. Valuation Metrics - Teleflex has a PEG ratio of 1.69, which is lower than the industry average of 2.35, indicating potential undervaluation [4]. - The P/B ratio for Teleflex is 1.33, significantly lower than the industry average of 3.67, suggesting an attractive valuation [5]. - Teleflex's P/S ratio stands at 1.88, compared to the industry's average of 2.73, reinforcing its undervalued status [6]. - The P/CF ratio for Teleflex is 7.96, well below the industry average of 21.07, indicating a solid cash outlook and potential undervaluation [7]. Investment Outlook - The combination of Teleflex's strong valuation metrics and positive earnings outlook positions it as an impressive value stock in the current market [8].

Company Overview - Teleflex Incorporated is a global provider of medical technologies focused on improving health and quality of life [2] - The company aims to become the most trusted partner in healthcare, offering a diverse portfolio in various therapy areas including anesthesia, emergency medicine, interventional cardiology, radiology, surgical, vascular access, and urology [2] Product Portfolio - Teleflex is home to several trusted brands such as Arrow™, Barrigel™, Deknatel™, QuikClot™, LMA™, Pilling™, Rüsch™, UroLift™, and Weck™, all united by a common purpose [3] Upcoming Events - Management of Teleflex will present at the Morgan Stanley 23rd Annual Global Healthcare Conference on September 9, 2025, at 3:20 p.m. (ET) [1] - A live audio webcast of the presentation will be available on the investor section of the Teleflex website [1]