LeMaitre Vascular Q2 sales slightly miss estimates
LMAT•Drivers of growth
- Artegraft sales increased 34% in Q2, with the international launch driving growth, according to CEO George LeMaitre.
- Product line records: grafts, carotid shunts and patches each posted record sales, with grafts up 23%, shunts up 18% and patches up 4%.
- Gross margin gains: the company attributed a 210-basis-point increase in gross margin to higher prices, mix shift and operational efficiencies.
Quarterly results
LeMaitre Vascular's second-quarter sales rose 10% year over year, slightly missing analyst expectations. EPS for the quarter rose 23% year over year.
The company said growth was driven by Artegraft sales and international expansion.
Outlook and valuation
LeMaitre sees third-quarter sales of $66.3 million-$68.3 million and EPS of $0.66-$0.71. The company expects fourth-quarter sales of $71.1 million-$73.1 million and EPS of $0.75-$0.81.
For the full year, LeMaitre forecast sales of $274.3 million-$278.3 million and EPS of $2.84-$2.94.
The stock recently traded at 33 times next 12-month earnings, versus 37 three months ago. Wall Street's median 12-month price target is $120.00, about 15.8% above the Aug. 3 closing price of $103.61.
