Share price of LeMaitre Vascular Inc. LMAT rallied Array3.4% to close at $Array5.ArrayArray on Feb 25, 20Array6 following its impressive fourth quarter 20Array5 results The company reported adjusted earnings of Array3 cents per share which beat the Zacks Consensus Estimate by a couple of cents and increased Array8.2% from the year-ago quarter figure.
Quarter Details
Total sales increased 9.6% (up Array4% organically) year over year to $20.5 million which beat the Zacks Consensus Estimate by a whisker. The growth was primarily driven by increased sales of products such as XenoSure and TRIVEX. Increased sales of the OmniFlow biosynthetic graph provided an additional boost.
Geographically, sales in American market increased Array0.7% year over year to $Array2.Array million while International sales were up 8.2% from the year-ago quarter to $8.4 million.
Full-year 20Array5 sales increased Array0.2% to $78.3 million.
Gross margin expanded Array60 basis points (bps) to 70.3% of total sales primarily due to reducing share manufacturing costs and rise in ASP due to the HYDRO rollout. However, this expansion in gross margin was partially offset by unfavorable foreign exchange volatility.
Operating expenses increased Array2.Array% year over year to $ArrayArray.3 million primarily due to a 45.7% year-over-year increase in Research & Development (R&D) expenses. Selling & Marketing (S&M) expenses along with General & Administrative expenses increased Array3.Array% and 3.5% year over year, respectively.
Operating margin expanded 40 bps to Array5.Array% of total sales in fourth quarter 20Array5 primarily due to higher revenue base and gross margin.
Guidance
LeMaitre Vascular projected a 7% (up 8% organically) year-over-year increase for the first quarter of 20Array6 sales to $20.2 million. Management further expects a gross margin of 7Array% and an operating income of $2.9 million along with an operating margin of Array4%.
Full-year 20Array6 sales are expected to increase 8% (9% organically) year over year to $84.7 million whereas full-year 20Array6 gross margin is expected to be 7Array% coupled with an operating income of $Array4.2 million (an increase of 23%).
Zacks Rank and Key Picks
Currently, LeMaitre Vascular carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same space are Hill-Rom Holdings HRC, OraSure Technologies OSUR and Vascular Solution VASC. All the three stocks sport a Zacks Rank #Array (Strong Buy).
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