LeMaitre’s first quarter results were met with a negative market reaction, as investors weighed a strong revenue performance against softer-than-expected earnings. Management pointed to robust organic sales growth, driven by volume and price increases, particularly in grafts and carotid shunts. CEO George LeMaitre highlighted that all five product categories achieved record sales, with Europe posting the fastest growth at 18%. While gross margin benefited from higher selling prices and reduced inventory costs, it was tempered by a shift toward lower-margin graft products. Management was candid about this dynamic, noting that “the Artegraft product in particular is the component of mix that is...below the corporate average margin.”
Is now the time to buy LMAT? Find out in our full research report (it’s free).
LeMaitre (LMAT) Q1 CY2025 Highlights:
- Revenue: $59.87 million vs analyst estimates of $57.75 million (12% year-on-year growth, 3.7% beat)
- EPS (GAAP): $0.48 vs analyst expectations of $0.50 (4.6% miss)
- Adjusted EBITDA: $16.51 million vs analyst estimates of $15.57 million (27.6% margin, 6.1% beat)
- The company lifted its revenue guidance for the full year to $245.5 million at the midpoint from $239.1 million, a 2.7% increase
- EPS (GAAP) guidance for the full year is $2.16 at the midpoint, missing analyst estimates by 3.5%
- Operating Margin: 21.1%, down from 22.2% in the same quarter last year
- Organic Revenue rose 13.4% year on year (10.8% in the same quarter last year)
- Market Capitalization: $1.91 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions LeMaitre’s Q1 Earnings Call
- Suraj Kalia (Oppenheimer): questioned the confidence behind raising guidance early in the year amid tariff uncertainties; CEO George LeMaitre cited strong Q1 results, effective pricing, and early international traction for Artegraft.
- Rick Wise (Stifel): asked about the sustainability of price increases and how to model price versus unit growth for the full year; LeMaitre clarified that Q1 saw a 9% price and 4% unit increase but cautioned against forecasting a precise split for the remainder of the year.
- Michael Saccone (Jefferies): sought clarity on margin pressures and the impact of allograft outperformance; management confirmed that stronger graft category sales, especially allografts, drove the lower-than-expected margin.
- Frank Tarkinen (Lake Street): inquired about the ramp time for new sales reps and the timeline for operating leverage; CFO Dorian LeBlanc indicated that new reps can reach quota performance nearly as quickly as experienced reps, supporting H2 margin improvement.
- Brett Fishbin (KeyBanc): asked how tariff-related costs are reflected in guidance and about the organic growth tailwind from discontinuing the Elutia agreement; management explained both are factored into updated guidance, with Elutia’s exit reducing organic growth headwinds.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will be monitoring (1) the pace of Artegraft’s adoption and revenue contribution in Europe and other new markets, (2) the effectiveness of the expanded salesforce and new international offices in driving accelerated growth, and (3) margin trends as the company exits the Elutia patch agreement and faces ongoing product mix and tariff headwinds. Execution on inventory management and regulatory approvals will also be key markers for LeMaitre’s operational progress.
LeMaitre currently trades at $84.54, down from $90.24 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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