Navigating Contradictions: Insights from the Latest NewCo Earnings Call on Valuation, OEM Impact, and Market Dynamics

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Revenue and Earnings Performance:
- Teleflex reported revenues of $700.7 million for Q1 2025, down 5% year-over-year on a GAAP basis and a decline of 3.8% on an adjusted constant currency basis.
- The decline was primarily due to softer-than-expected orders in EMEA and the impact of volume-based procurement in China.

Geographic Segment Revenues:
- Americas revenues were $475.7 million, down 3.2% year-over-year, impacted by OEM declines and challenges in the UroLift office sites of service.
- EMEA revenues decreased 2.8% year-over-year, primarily offset by strong performance in Surgical and Vascular Access but affected by lower-than-expected orders at the end of the quarter.

Impact of Tariffs:
- Teleflex anticipates a $55 million impact from tariffs enacted since the issuance of their previous guidance for the full year 2025.
- The impact will be recorded in cost of goods sold, with approximately 50% associated with China and 35% with Mexico.

Product Category Growth:
- Vascular Access revenues increased 1.9% year-over-year, driven by double-digit growth in PICCs and solid performance in EZ-IO, despite a decline in OEM revenue.
- Interventional Urology reported a 10.7% decrease in year-over-year revenues, pressured by UroLift, particularly in the office sites of service, while Barrigel delivered strong double-digit growth.