As you might know, LeMaitre Vascular, Inc. (NASDAQ:LMAT) just kicked off its latest third-quarter results with some very strong numbers. LeMaitre Vascular delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting US$36m, some 15% above indicated. Statutory EPS were US$0.37, an impressive 91% ahead of forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from LeMaitre Vascular's five analysts is for revenues of US$146.0m in 2021, which would reflect a meaningful 20% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 24% to US$1.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$142.0m and earnings per share (EPS) of US$0.97 in 2021. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice gain to earnings per share in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 17% to US$41.40per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic LeMaitre Vascular analyst has a price target of US$49.00 per share, while the most pessimistic values it at US$35.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await LeMaitre Vascular shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the LeMaitre Vascular's past performance and to peers in the same industry. The analysts are definitely expecting LeMaitre Vascular's growth to accelerate, with the forecast 20% growth ranking favourably alongside historical growth of 9.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect LeMaitre Vascular to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around LeMaitre Vascular's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple LeMaitre Vascular analysts - going out to 2022, and you can see them free on our platform here.
You can also view our analysis of LeMaitre Vascular's balance sheet, and whether we think LeMaitre Vascular is carrying too much debt, for free on our platform here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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