Medical device company LeMaitre Vascular (NASDAQ:LMAT) reported Q1 CY2025 results beating Wall Street’s revenue expectations , with sales up 12% year on year to $59.87 million. Guidance for next quarter’s revenue was optimistic at $62.5 million at the midpoint, 2.2% above analysts’ estimates. Its GAAP profit of $0.48 per share was 4.6% below analysts’ consensus estimates.
Revenue: $59.87 million vs analyst estimates of $57.75 million (12% year-on-year growth, 3.7% beat)
EPS (GAAP): $0.48 vs analyst expectations of $0.50 (4.6% miss)
Adjusted EBITDA: $15.18 million vs analyst estimates of $15.57 million (25.4% margin, 2.5% miss)
The company lifted its revenue guidance for the full year to $245.5 million at the midpoint from $239.1 million, a 2.7% increase
EPS (GAAP) guidance for the full year is $2.16 at the midpoint, missing analyst estimates by 3.5%
Operating Margin: 21.1%, down from 22.2% in the same quarter last year
Organic Revenue rose 13% year on year (11% in the same quarter last year)
Market Capitalization: $2.05 billion
Chairman/CEO George LeMaitre said, “Q1 sales momentum allows us to increase our 2025 reported ($245mm) and organic (+13%) sales guidance, up from prior guidance of $239mm and 10%. $303mm of cash also provides strategic optionality.”
Company Overview
Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions.
Sales Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, LeMaitre’s 13.7% annualized revenue growth over the last five years was solid. Its growth beat the average healthcare company and shows its offerings resonate with customers.
LeMaitre Quarterly Revenue
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. LeMaitre’s annualized revenue growth of 15.6% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.
LeMaitre Year-On-Year Revenue Growth
We can dig further into the company’s sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, LeMaitre’s organic revenue averaged 14.5% year-on-year growth. Because this number aligns with its normal revenue growth, we can see the company’s core operations (not acquisitions and divestitures) drove most of its results.
LeMaitre Organic Revenue Growth
This quarter, LeMaitre reported year-on-year revenue growth of 12%, and its $59.87 million of revenue exceeded Wall Street’s estimates by 3.7%. Company management is currently guiding for a 11.9% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 8.9% over the next 12 months, a deceleration versus the last two years. Still, this projection is commendable and suggests the market is forecasting success for its products and services.
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Operating Margin
LeMaitre has been an efficient company over the last five years. It was one of the more profitable businesses in the healthcare sector, boasting an average operating margin of 21.3%.
Analyzing the trend in its profitability, LeMaitre’s operating margin of 23.4% for the trailing 12 months may be around the same as five years ago, but it has increased by 7.6 percentage points over the last two years.
This quarter, LeMaitre generated an operating profit margin of 21.1%, down 1.1 percentage points year on year. This reduction is quite minuscule and indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
LeMaitre’s EPS grew at an astounding 18.1% compounded annual growth rate over the last five years, higher than its 13.7% annualized revenue growth. However, we take this with a grain of salt because its operating margin didn’t expand and it didn’t repurchase its shares, meaning the delta came from reduced interest expenses or taxes.
LeMaitre Trailing 12-Month EPS (GAAP)
In Q1, LeMaitre reported EPS at $0.48, up from $0.44 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects LeMaitre’s full-year EPS of $1.98 to grow 17.3%.
Key Takeaways from LeMaitre’s Q1 Results
It was great to see LeMaitre’s full-year revenue guidance top analysts’ expectations. We were also glad its organic revenue outperformed Wall Street’s estimates. On the other hand, its full-year EPS guidance missed significantly and its EPS guidance for next quarter fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 1.1% to $89.25 immediately following the results.
