What happened
Shares of LeMaitre Vascular (NASDAQ:LMAT) were up more than 16% as of 1:50 p.m. ET Wednesday after the healthcare company released its first-quarter earnings report on Tuesday. The medical device maker, which specializes in vascular devices, implants, and services, has seen its shares climb more than 40% this year.
So what
The company had three items in the report that helped drive the stock up.
First, it reported quarterly sales of $47.1 million, up 19% year over year, though earnings per share (EPS) were $0.27, down 1% compared to the same period last year.
The company also released guidance showing it expected second-quarter revenue between $47.1 million and $49.5 million, up 18% year over year at the midpoint, and full-year revenue between $187.1 million and $193.1 million, up 15% at the midpoint. It also gave EPS estimates, saying it expected EPS to be between $0.30 and $0.35 in the second quarter, a 103% increase at the midpoint, and yearly EPS of between $1.14 and $1.27, a rise of 29% at the midpoint.
The company also announced it was raising its quarterly dividend by 12% to $0.14, the 12th consecutive year the company has increased its dividend since it began having one in 2011. The yield on the dividend is around 1.02%.
Now what
LeMaitre Chairman and CEO George LeMaitre credited the reopening of hospital business as the COVID-19 pandemic abated and an increase in sales representatives for rising sales. The key for the company will be continuing that upward climb.
The company recently helped itself when it announced that last month that it had agreed to distribute porcine cardiac patches in the U.S. made by Aziyo Biologics. The patches are made to decrease inflammation and stimulate healthy tissue growth. The three-year deal includes an option to buy Aziyo's worldwide patch business in the second and third years of the deal. Last year, Aziyo sold $6.8 million worth of patches in the U.S.
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Jim Halley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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