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 worldwide sales.

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

Financial highlights

• Q2 2024 net sales: $55.8M (+11% YoY); six-month net sales: $109.3M (+12% YoY).

• Q2 2024 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 increased to $0.16 in Q2 2024, up from $0.14 YoY.

Outlook and guidance

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

• Q3 2024 sales guidance: $52.7M–$54.7M (midpoint +13%, +14% organic); gross margin 68.0%.

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

• Guidance implies a 23% operating margin for 2024, up from 19% in 2023.

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