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Analyst Blog

Share price of Burlington, MA-based LeMaitre Vascular, Inc. (LMAT - Free Report) scaled a new 52-week high of $24.36 on Nov 11, eventually closing at $23.81.

Notably, this represents a promising one-year return of approximately 74.4%, much better than the S&P 500’s roughly 7% over the same time frame.

Meanwhile, we note that LeMaitre carries a Zacks Rank #2 (Buy). The stock has a market cap of $442.49 million and an impressive long-term expected earnings growth rate of 15.00%.

LEMAITRE VASCLR Price and Consensus

 

LEMAITRE VASCLR Price and Consensus | LEMAITRE VASCLR Quote

LeMaitre recently reported third-quarter 2016 earnings on Oct 26. Since the release, the company’s share price surged almost 25.6%, till yesterday’s close.

Key Catalysts

The leading developer of medical devices for the treatment of peripheral vascular disease, LeMaitre recently announced the acquisition of Restore Flow Allografts – a leading organization dedicated in the research for restorative transplantation of donated human tissue.

The buyout is likely to boost revenues in the fourth quarter and full-year 2016 by $550,000. In fact, LeMaitre expects revenues of $23.7 million, gross margin of 72.1% and operating income of $4.5 million for the fourth quarter.

Of the other notable developments, strong outcomes from the XenoSure biologic patch and the introduction of HYDRO valvulotomes in the just reported quarter are significant positives in our view.

The Xenosure platform registered solid growth in the third quarter, up 59% to a record $5.5 million on a year-over-year basis. Additionally, adjusted earnings of 17 cents per share beat the Zacks Consensus Estimate by 2 cents. Revenues of nearly $23 million also exceeded the consensus mark of $22 million.

LeMaitre, with its set of innovative products, is a prominent player in the huge and growing peripheral vascular market. This niche market is expected to grow at a CAGR of 6.8% and reach $3.4 billion by 2022 globally, as per GlobalData. Buoyed by such optimistic trends, the company is expected to enhance its growth trajectory over the long haul.

Estimate Revisions

The Zacks Consensus Estimate for fiscal 2016 inched up by 2 cents to 57 cents over the last 30 days. Similarly, fiscal 2017 estimates increased by 2 cents to 65 cents over the same time frame.

Other Key Picks

Other favorably ranked stocks in the broader medical space include Anika Therapeutics Inc. (ANIK - Free Report) , Cambrex Corporation (CBM - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Anika Therapeutics represents a strong long-term expected growth rate of 15.00%. Notably, the company has a positive one-year return of almost 8.7%.

Cambrex Corporation has a positive one-year return of 6.6%. The company also has a promising long-term expected growth rate of 15.00%.

IDEXX Laboratories represents a stellar one-year return of 63.04%. The company has a long-term expected growth rate of almost 14.96%.

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