Growth Guidance and Outlook
Q: What accelerates growth profile from here?
A: Liam highlighted that despite midpoint guidance of 4.25% growth, underlying organic growth is 4.75% to 5.75% after adjusting for a 1% headwind from MSA and Palette acquisitions. " He expressed bullishness about the company's prospects, pointing to strong performances in OEM, Interventional Access, and Surgical, and double-digit growth in EMEA (9.7%) and APAC. "

Margin Expansion Opportunities
Q: How can margins expand in 2025?
A: Liam emphasized that margin expansion starts with gross margins, aiming for a 100 basis point expansion at the midpoint this year. " Catalysts include continuous improvement programs, positive pricing, Palette ramping up, and the MSA headwind ending in 2025. " He is confident in driving both growth and operating leverage, targeting 10% EPS growth. "

Gross Margin Expectations
Q: What pressures gross margin over next quarters?
A: Tom noted that aside from inflationary pressures and some FX effects, there's nothing necessarily pressuring gross margins. " They had a solid start and feel good about achieving the full-year guidance. "

Interventional Business Growth
Q: Is Interventional growth sustainable and a focus for M&A?
A: Liam stated that Interventional can maintain growth above Teleflex's average, highlighting products like MANTA and upcoming launches like Wattson. " The cath lab is a key area of focus for M&A, and they've invested heavily in R&D. "

M&A Strategy
Q: What's your M&A strategy and deal sizes?
A: Liam said they focus on tuck-in and scale transactions, ranging from tens to hundreds of millions in revenue. " They have financial firepower with 1.7x leverage. " Multiples have tempered, indicating a healthy environment for disciplined M&A. "

Americas Performance Factors
Q: Why was Americas revenue down?
A: The decline was due to the MSA, which was all booked in the Americas. " Excluding MSA, growth would have been around 3.5%. " The Endurance recall also impacted results; both factors will anniversary as the year progresses. "

Full-Year Guidance Decision
Q: Why not raise full-year guide despite Q1 beat?
A: Liam mentioned it's only Q1, and some OEM orders were pulled into Q1 from Q2. " They updated for FX and will monitor the situation but feel bullish about performance. "

Urology Segment Performance
Q: Is UroLift performance aligned with plans?
A: Liam expects Interventional Urology to deliver 7.5% growth in 2024, including Palette revenue of $66–$68 million, offsetting declines in UroLift. " UroLift was impacted by declines in office procedures and sales force cross-training, with improvement expected as training completes. "

OEM Performance and Outlook
Q: Should we expect OEM growth to normalize?
A: Liam anticipates double-digit OEM growth for the year but expects a slight step back in Q2 due to order phasing. " Demand is robust, with strong order banks, especially in microcatheters and catheter extrusions. "

Palette Growth Drivers
Q: What drives Palette's growth?
A: Growth is mainly from market expansion, not share shift. " The product is well-received, and additional reps will be trained and active by Q3. " An expanded indications study for Barrigel is underway. "

Q2 Guidance Explanation
Q: What explains lower Q2 guidance?
A: The $760–$765 million guidance is impacted by about $6 million of FX and OEM orders pulled into Q1. " The MSA was slightly higher in Q2 last year, affecting comparisons. "

Vascular Access Performance
Q: Comment on Vascular Access performance and outlook.
A: The Endurance recall impacted Vascular Access in Q1; they will anniversary that in Q2. " Expect improvement through the year, with solid PICC and CVC growth. "

Titan Bariatric Device Growth
Q: Outlook for Titan's contribution to growth?
A: The addition of buttress, used by 60% of surgeons, has been well received. " Despite gastric sleeve procedures down 10–15%, Titan met expectations and will contribute to growth. "

Upcoming Clinical Data Impact
Q: Impact of upcoming CLEAR trial data?
A: Liam expects the CLEAR trial comparing UroLift to Rezum to aid providers and patients in understanding postoperative experiences. " Additional studies on retreatment rates and complications will strengthen their position. "

Earnings Guidance Approach
Q: Why the conservative earnings guidance?
A: Tom explained they raised the lower end by $0.09, with $0.04 offset by FX. " They feel good about the results and full-year guidance but will monitor the situation. "

Urology Training and Integration
Q: How is Urology sales force training going?
A: Training is progressing well; about 40% trained, to be completed by end of Q2. " The organization will be fully integrated by year-end. " There was zero impact on Palette and some impact on UroLift. "

Vascular Business Details
Q: Why did Vascular Access come in lighter?
A: The Endurance recall affected Vascular Access in Q1. " PICC growth was solid and expected to improve; underlying CVC growth is strong. " Improvement is expected as they anniversary the recall. "