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LeMaitre Hits 52-Week High on Solid Q3, Pipeline Strength

Shares of LeMaitre Vascular Inc. LMAT attained a new 52-week high of $16.00 on Nov 20, eventually closing a tad lower at $15.77. This represents a strong one-year return of about 121.2%. The S&P 500 increased almost 1% during the same period.

We note that earnings of this Zacks Rank #2 (Buy) stock have outperformed the Zacks Consensus Estimate by an average of almost 49.3% in the last four quarters.

Key Growth Catalysts

LeMaitre reported solid third-quarter 2015 results, driven by robust performance across its product lines. Earnings of 11 cents per share rose 120% year over year driven by 8.7% growth in net sales, which totaled $19 million. The growth was also due to flat operating expenses resulting in a 79.3% surge in operating income to $3.3 million.

In the reported quarter, sales increased 12% organically. XenoSure patch grew 35% on a year-over-year basis. LeMaitre management noted that Omniflow II Graft sales were approximately $4 million a year above pre-acquisition levels. Notably, LeMaitre bought Xenotis, the manufacturer and marketer of Omniflow II, in Aug 2014.

Based on strong results, LeMaitre increased its 2015 sales guidance to $78 million, up 10% over 2014. Excluding currency effects and acquisitions, this represents 13% organic sales growth. Management forecasts gross margin of 68.7%. The company raised its operating income guidance to $11 million (14% operating margin), which is a massive jump of 73% over 2014.

LeMatire expects to launch a new product - AnastoClip - in the fourth quarter of 2015 or the first quarter of 2016. The company's TRIVEX System was recently approved by China's Food and Drug Administration. The approval will help the company to proceed with its previously signed five-year, $7.8 million distribution agreement in China.

Other Stocks to Consider

One may consider other favorably ranked stocks like Hill-Rom Holdings HRC , ICU Medical ICUI and NxStage Medical NXTM , all of which sport a Zacks Rank #1 (Strong Buy).

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NXSTAGE MEDICAL (NXTM): Free Stock Analysis Report

HILL-ROM HLDGS (HRC): Free Stock Analysis Report

ICU MEDICAL INC (ICUI): Free Stock Analysis Report

LEMAITRE VASCLR (LMAT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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