Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at LeMaitre (NASDAQ: LMAT) and the best and worst performers in the surgical equipment & consumables - specialty industry.

The surgical equipment and consumables industry provides tools, devices, and disposable products essential for surgeries and medical procedures. These companies therefore benefit from relatively consistent demand, driven by the ongoing need for medical interventions, recurring revenue from consumables, and long-term contracts with hospitals and healthcare providers. However, the high costs of R&D and regulatory compliance, coupled with intense competition and pricing pressures from cost-conscious customers, can constrain profitability. Over the next few years, tailwinds include aging populations, which tend to need surgical interventions at higher rates. The increasing integration of AI and robotics into surgical procedures could also create opportunities for differentiation and innovation. However, the industry faces headwinds including potential supply chain vulnerabilities, evolving regulatory requirements, and more widespread efforts to make healthcare less costly.

The 4 surgical equipment & consumables - specialty stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 22.3% since the latest earnings results.

LeMaitre (NASDAQ: LMAT)

Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions.

LeMaitre reported revenues of $55.72 million, up 14% year on year. This print fell short of analysts’ expectations by 0.7%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ full-year EPS guidance estimates but a slight miss of analysts’ EPS estimates.

Chairman/CEO George LeMaitre said, “2024 was a productive year. More reps, higher ASPs, a better GM and controlled spending produced growth in sales (+14%), op. income (+42%) & EPS (+44%). $300mm of cash provides strategic optionality.”

LeMaitre pulled off the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 19.7% since reporting and currently trades at $84.77.

Is now the time to buy LeMaitre? Access our full analysis of the earnings results here, it’s free.

Best Q4: Intuitive Surgical (NASDAQ: ISRG)

Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.

Intuitive Surgical reported revenues of $2.41 billion, up 25.2% year on year, outperforming analysts’ expectations by 6.5%. The business had an incredible quarter with an impressive beat of analysts’ sales volume and EPS estimates.

Intuitive Surgical scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 19.7% since reporting. It currently trades at $487.87.

Is now the time to buy Intuitive Surgical? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Teleflex (NYSE: TFX)

With a portfolio spanning from vascular access catheters to minimally invasive surgical tools, Teleflex (NYSE: TFX) designs, manufactures, and supplies single-use medical devices used in critical care and surgical procedures across hospitals worldwide.

Teleflex reported revenues of $795.4 million, up 2.8% year on year, falling short of analysts’ expectations by 2.3%. It was a softer quarter as it posted a miss of analysts’ constant currency revenue estimates.

Teleflex delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 27.2% since the results and currently trades at $129.26.

Read our full analysis of Teleflex’s results here.

Integra LifeSciences (NASDAQ: IART)

Founded in 1989 as a pioneer in regenerative medicine technology, Integra LifeSciences (NASDAQ: IART) develops and manufactures medical technologies for neurosurgery, wound care, and surgical reconstruction, including regenerative tissue products and surgical instruments.

Integra LifeSciences reported revenues of $442.6 million, up 11.5% year on year. This print came in 0.7% below analysts' expectations. Overall, it was a slower quarter as it also recorded a miss of analysts’ full-year EPS guidance estimates.

Integra LifeSciences had the weakest full-year guidance update among its peers. The stock is down 27.1% since reporting and currently trades at $16.06.

Read our full, actionable report on Integra LifeSciences here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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