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Why LeMaitre Vascular Is Soaring

By Brian Feroldi – Updated Apr 19, 2019 at 10:38AM

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Shares jump after the company's releases fly past expectations.

What happened

After the company reported fourth-quarter and full-year results, shares of LeMaitre Vascular (LMAT 3.58%), a medical device company focused on vascular surgery, jumped 18% as of 10:15 a.m. EST on Wednesday.

So what

Here are the headline numbers from the quarter:

  • Sales grew 9% to $28.4 million. That was well ahead of the $25.9 million that analysts had projected.
  • Operating income surged 14% to $7.2 million.
  • Net income grew 41% to $6 million, or $0.30 per share. That figure blew past the $0.20 that Wall Street was expecting.
  • The board of directors approved a 21% increase to the quarterly dividend and gave the thumbs-up to repurchasing $10 million shares of common stock.

Zooming out to the full year, here's how the company performed in 2018:

  • Revenue jumped 5% to $105.6 million. That was solidly ahead of the $103 million that was expected.
  • Net income grew 34% to $22.9 million. However, the bulk of the increase is attributable to one-time gains on business divestitures and acquisitions.
  • EPS jumped 31% to $1.13. This was comfortably above the $1.04 that market watchers were expecting.
Doctors performing surgery.

Image source: Getty Images.

Turning to guidance, here's what management is predicting about the quarter and year ahead:

  • First-quarter 2019 sales are expected to grow about 8% to a range of $27.7 million to $28.5 million. That's ahead of the current estimate of $27.2 million.
  • First-quarter 2019 EPS is expected to land between $0.18 and $0.20. The midpoint of this range is slightly behind the $0.20 that was expected.
  • Full-year 2019 sales are expected to grow about 8% to $113 million to $114.4 million. That's also ahead of the $110.3 million that was predicted.
  • Full-year 2019 EPS is expected to be in the range of $0.82 to $0.86. This range compares favorably to the $0.81 expectation.

Given the better-than-expected results and guidance, it isn't hard to figure out why shares of this beaten-down gem are getting a boost today.

Check out the latest LeMaitre earnings call transcript.

Now what

LeMaitre's results should go a long way to prove to Wall Street that this is the same Steady Eddie growth business that it has always been. While shares are no longer a screaming bargain, my view is that this is still a high-quality business that buy-and-hold investors should get to know.

Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Stocks Mentioned

LeMaitre Vascular, Inc. Stock Quote
LeMaitre Vascular, Inc.
$50.93 (3.58%) $1.76

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