What Happened?
Shares of medical device company LeMaitre Vascular (NASDAQ: LMAT) jumped 9.5% in the afternoon session after the company reported better-than-expected second-quarter financial results and raised its full-year outlook. The medical device maker reported second-quarter earnings per share of $0.60 on revenue of $64.2 million, which beat Wall Street's expectations. The company's sales jumped 15% from the previous year, pushed by higher prices and a 7% increase in the number of products sold. Strong international sales for its Artegraft product also contributed to the growth. Looking ahead, LeMaitre lifted its full-year 2025 revenue forecast to $251 million and increased its earnings guidance, signaling management's confidence in continued strong performance.
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What Is The Market Telling Us
LeMaitre’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 26 days ago when the stock dropped 3% on the news that the U.S. administration announced a sharp escalation in trade tensions by threatening new tariffs on Canada. The wider market sentiment turned negative after the White House announced plans to impose a 35% tariff on Canadian imports, sparking renewed fears of a trade war. This news prompted a sell-off across major U.S. indexes, including the S&P 500 and the Dow Jones Industrial Average, as investors grew concerned about the potential economic impact of escalating protectionist policies. The healthcare sector is especially vulnerable to such tensions due to its deeply integrated supply chains with Canada for pharmaceuticals and medical devices, meaning increased costs and potential disruptions.
Additionally, ongoing U.S. policy headwinds aimed at lowering drug prices and specific corporate challenges, like those faced by UnitedHealth Group, further compounded the sector's decline. As a result, the Health Care SPDR ETF (XLV) fell 1.0%, underperforming even as major indices pared some losses.
LeMaitre is up 1% since the beginning of the year, but at $92.39 per share, it is still trading 14.4% below its 52-week high of $107.97 from November 2024. Investors who bought $1,000 worth of LeMaitre’s shares 5 years ago would now be looking at an investment worth $3,164.
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