LeMaitre Vascular (LMAT) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales reached $55.8M, up 11% year-over-year, with 12% organic growth and broad-based strength across product lines and geographies.

• Net income rose 46% to $11.8M; diluted EPS increased 44% to $0.52, with EPS growth supported by strong product and regional performance.

• Gross margin expanded to 68.9%, up 490 bps, driven by manufacturing efficiencies, higher ASPs, and favorable product mix.

• Direct-to-hospital sales accounted for 94–95% of total sales, with biologics representing up to 52% of Q2 sales.

• The company holds #1 or #2 share in 9 of 12 niche vascular device markets, serving over 4,950 hospital accounts globally.

Financial highlights

• Q2 2024 net sales: $55.8M (+11% YoY); gross profit: $38.5M (+20% YoY); gross margin: 68.9% (+490 bps YoY).

• Q2 2024 operating income: $14.4M (+52% YoY); operating margin: 26%.

• Cash and securities increased to $113M as of June 30, 2024, with no debt.

• Dividend per share: $0.16 in Q2 2024, up from $0.14 YoY; $7.2M paid in H1 2024.

• EBITDA for Q2 2024 was $16.8M, up 40% year-over-year.

Outlook and guidance

• Full-year 2024 sales guidance raised to $216.8M–$220.8M (midpoint +13%, +13% organic); EPS guidance up to $1.82–$1.91 (midpoint +39%, +37% ex-special charges).

• Q3 2024 guidance: $52.7M–$54.7M sales (midpoint +13%, +14% organic), gross margin 68.0%, $11.3M–$12.7M operating income, EPS $0.42–$0.46.

• Dividend per share increased 14% in Q1 2024, marking 13 consecutive years of growth.

• Management expects continued growth through direct sales expansion, new product launches, and acquisitions.

• Sufficient liquidity to meet anticipated cash requirements for at least the next twelve months.