LMAT Earnings Prediction
The chart below shows how LMAT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LMAT sees a -1.58% change in stock price 10 days leading up to the earnings, and a +3.38% change 10 days following the report. On the earnings day itself, the stock moves by -0.48%. This data can give you a slight idea of what to expect for the next quarter's release.
LMAT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
54.82M
15.63%
-1.84%
Gross Margin
67.82%
4.34%
-1.54%
Operating Margin
23.98%
23.86%
-6.87%
Net Margin
20.32%
28.45%
-4.02%
EPS
0.49
48.48%
-5.77%
No Data Available
LMAT Earnings Analysis
LeMaitre Vascular, Inc. Corporation (LMAT.O) Earnings Conference Call
Positive
Q3 Sales Growth Highlights: 16% sales growth in Q3 was led by graphs, patches, and carotid shunts, up 24%, 13%, and 18% respectively. APAC was our strongest region again, up 24% thanks to Thailand and Korea, our two newest direct markets. EMEA sales were up 22% in Q3, while the Americas were up 12%.
Sales Team Expansion: We ended Q3 with 146 sales reps. As of today, we're at 140 up and we're still targeting 155 to 160 for year-end. Of course, as we increase rep headcount, we get to build out our sales management team. We now have 28 RSMs, ASMs and managers, up 17% year-over-year.
Sales Growth in China: In China, we recently signed a lease which will bring together our Shanghai Sales office and our Shanghai warehouse into a new larger facility. While we continue to wait XenoSure cardiac patch approval, our efforts in China are starting to bear fruit. Sales were up 62% in Q3.
Gross Margin Improvement: In Q3, we posted a gross margin of 67.8%, up 280 basis points year-over-year. The increase was a result of higher ASPs direct labor efficiencies and improved RestoreFlow Allograft yields. Higher ASPs were driven by our differed allograft, valvulotome, RestoreFlow and shunt devices.
Operating Income Surge: Q3 2024 operating income increased 43% year-over-year to $13.1 million, and operating margin of 24%. For the full year, we also expect an operating margin of 24%, up significantly from 19% 2023.
Negative
Rising Operating Expenses: 1. Increased Operating Expenses: Operating expenses in Q3 2024 were $24 million, an increase of 11% compared to Q3 2023, indicating rising costs that could impact profitability.
Sales Rep Shortfall: 2. Slower Sales Rep Growth: The company ended Q3 with 146 sales reps, falling short of its target of 155 to 160 by year-end, which may hinder sales expansion efforts.
Regulatory Approval Delays: 3. Regulatory Delays: The approval for the allograft device in Germany is delayed due to a missed regulatory audit, pushing expected approvals into 2025, which could affect market entry plans.
Reduced R&D Investment: 4. Lower R&D Spending: R&D expenses were lower in Q3 compared to previous quarters, suggesting a potential reduction in innovation and product development efforts.
Pricing Strategy Challenges: 5. Limited Pricing Power: Despite a 10% price increase contributing to sales growth, the company acknowledged that pricing decisions have been inconsistent, with sales reps sometimes discounting prices, which could undermine future pricing strategies.
LMAT FAQs
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LMAT Earning Call Sentiment
LeMaitre Vascular, Inc. (LMAT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
LMAT.O
2.4%Positive
The earnings call indicates strong financial performance with 16% sales growth, increased operating income, and a significant EPS growth of 49%. The company has improved gross margins and operating margins, and has increased cash reserves. Although there are some uncertainties in the Q&A, such as inventory and allograft approvals, the overall sentiment is positive. The guidance for further sales growth and improved margins is optimistic. Given the company's market cap, the stock price is likely to react positively, falling in the 2% to 8% range over the next two weeks.
