Shares of Teleflex (NYSE:TFX) dropped sharply in premarket trading on Thursday, sliding 8.8% to $102 after the medical device company published fourth-quarter results that fell short of Wall Street expectations.
Teleflex reported quarterly revenue of $569 million, well under the average analyst estimate of $919.3 million compiled by LSEG. Adjusted earnings for the period were $1.91 per share, compared with consensus estimates of $3.73 per share.
Looking ahead, the company provided its 2026 adjusted profit outlook in a range of $6.25 to $6.55 per share, a figure noticeably below the analyst projection of $14.28 per share. Management also said it expects to realize annual pre-tax savings of $48 million to $52 million tied to a planned restructuring.
In addition, Teleflex reaffirmed its previously disclosed plan to divest three business units announced last year, which the company said have a combined value of $2.03 billion. The divestitures are part of an effort to sharpen the firm's focus on its critical care and hospital businesses, according to the company.
Market reaction reflected the weak results and guidance; the stock was down 8.3% year to date as of Wednesday's close prior to Thursday's premarket decline.
Context summary - The quarter missed consensus on both top-line and adjusted earnings metrics. The firm's guidance for 2026 sits well below analyst expectations, and the company has tied part of its cost plan to a restructuring intended to generate tens of millions in annual pre-tax savings. Teleflex continues to move forward with previously announced divestitures valued at $2.03 billion in aggregate.
Key points
- Teleflex reported Q4 revenue of $569 million versus an LSEG analyst consensus of $919.3 million.
- Adjusted Q4 EPS came in at $1.91, below analyst expectations of $3.73 per share.
- Company issued 2026 adjusted profit guidance of $6.25 to $6.55 per share, compared with analyst estimates of $14.28 per share; announced planned restructuring to yield $48 million to $52 million in annual pre-tax savings; reaffirmed plan to divest three units for a combined $2.03 billion as it refocuses on critical care and hospital businesses.
Risks and uncertainties
- Near-term performance risk stemming from a quarter that missed revenue and earnings expectations, which influenced the stock's premarket decline - impacting investors and equity market sentiment in the medical device and healthcare sectors.
- Guidance uncertainty, with 2026 adjusted profit projected well below analyst consensus, creating potential volatility in earnings expectations for Teleflex and comparable medical device peers.
- Operational change associated with a planned restructuring and the execution of previously announced divestitures introduces implementation and timing uncertainty for the company and its positioning in critical care and hospital markets.
This article presents the company's reported figures, outlook and announced actions as released in the company update. Where the company provided specific numerical expectations or past announcements, those figures are reported here without extrapolation.