There's been a notable change in appetite for LeMaitre Vascular, Inc. (NASDAQ:LMAT) shares in the week since its full-year report, with the stock down 19% to US$29.29. It was a credible result overall, with revenues of US$117m and statutory earnings per share of US$0.88 both in line with analyst estimates, showing that LeMaitre Vascular is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
Taking into account the latest results, the latest consensus from LeMaitre Vascular's seven analysts is for revenues of US$129.0m in 2020, which would reflect a solid 10% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to rise 2.3% to US$0.93. Yet prior to the latest earnings, analysts had been forecasting revenues of US$129.4m and earnings per share (EPS) of US$0.95 in 2020. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but analysts did make a small dip in their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$36.00, with analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on LeMaitre Vascular, with the most bullish analyst valuing it at US$40.00 and the most bearish at US$30.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
It can also be useful to step back and take a broader view of how analyst forecasts compare to LeMaitre Vascular's performance in recent years. Next year brings more of the same, according to analysts, with revenue forecast to grow 10%, in line with its 10% annual growth over the past five years. Compare this with the wider market, which analyst estimates (in aggregate) suggest will see revenues grow 7.8% next year. So it's pretty clear that LeMaitre Vascular is forecast to grow substantially faster than its market.
The Bottom Line
The biggest concern with the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds could lay ahead for LeMaitre Vascular. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that LeMaitre Vascular's revenues are expected to grow faster than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for LeMaitre Vascular going out to 2022, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.