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HAE Q3 Earnings In Line, '25 Sales View Cut, Stock Up in Aftermarket
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Haemonetics Corporation (HAE - Free Report) delivered third-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.19, which rose 14.4% year over year. The bottom line was on par with the Zacks Consensus Estimate.
On a GAAP basis, EPS was 74 cents compared with 61 cents in the prior-year quarter.
Following the earnings announcement, shares of HAE rose 0.02% in after-market trading yesterday.
HAE’s Q3 Revenues
Revenues increased 2.7% to $348.5 million, which missed the Zacks Consensus Estimate by 1.3%.
HAE’s Q3 Segmental Details
At Plasma, revenues totaled $134.2 million (accounting for 38.5% of the total revenues), down 9.1% year over year (same on an organic basis). Our model projected the unit’s revenues to be $135.4 million.
The decrease resulted from lower sales volumes in North America, which is related to the previously announced customer transition of CSL Plasma, whose non-exclusive supply agreement with the company is scheduled to expire in December 2025.
Revenues at Blood Center (20.2%) fell 2.8% (same on an organic basis) to $70.3 million. Our model forecast was $67.6 million. The downside was primarily due to the Whole Blood portfolio rationalization.
Hospital revenues (41.3%) rose 23.9% (up 12.2% on an organic basis) to $144 million. Our model projected $138.2 million in revenues for this segment.
The increase can be attributed to the recently acquired product lines within Hemostasis Management Technologies, Transfusion Management Technologies and the benefits of Sensor-Guided Technologies and Esophageal Protection. Growth in vascular closure and Blood Management Technologies also contributed to the top-line improvement.
HAE’s Margin Performance
In the third quarter of fiscal 2025, the company-adjusted gross margin was 55.5%, up 263 basis points (bps) year over year. The primary drivers of the increase were volume growth in the Hospital segment and improving portfolio mix and pricing across all business segments.
Company-adjusted operating expenses, as a percentage of revenues, were 35.1% in the third quarter of fiscal 2025 compared with 37.2% in the prior-year period.
The decrease can be attributed to operating leverage and decreased performance-based compensation, partially offset by additional growth investments.
The company-adjusted operating income was $71.3 million in the quarter under discussion, up 34.8% year over year. The adjusted operating margin was 20.4%, up 472 bps from the year-ago quarter’s level.
Haemonetics Corporation Price, Consensus and EPS Surprise
Haemonetics exited the third quarter of fiscal 2025 with cash and cash equivalents of $320.8 million compared with $299.3 million at the end of the fiscal second quarter. Long-term debt was $1.22 billion, almost consistent with the reported fiscal second-quarter figure.
The cumulative net cash flow from operating activities at the end of the third quarter of fiscal 2025 was $65.2 million compared with $117.7 million in the year-ago period.
HAE’s Updated 2025 Guidance
The company now expects fiscal 2025 GAAP revenue growth to be in the range of 3-5% (earlier 5-8% on a reported basis). Organic revenue growth is anticipated to be in the range of 0-3% (earlier 1-4%). The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.39 billion.
HAE expects full-year 2025 adjusted EPS to be in the band of $4.50-$4.70 (earlier $4.45-$4.75). The Zacks Consensus Estimate for the same is pegged at $4.59.
Our Take on HAE
Haemonetics’ fiscal third-quarter earnings met estimates while revenues missed the same. However, both the top and bottom lines increased year over year. The performance reflects the company’s progress with executing its long-range plan and responding to market trends.
HAE continues to set the standard in plasma collection, accelerating center conversions and gaining share with the newest technologies while expanding its presence and successfully addressing emerging industry trends in attractive hospital markets. The expansion of both margins in the quarter bodes well.
Meanwhile, third-quarter revenues in both the Plasma and Blood Center businesses decreased. Additionally, the lowered fiscal 2025 sales growth guidance looks discouraging.
HAE’s Zacks Rank & Key Picks
Haemonetics currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Quest Diagnostics (DGX - Free Report) , ResMed (RMD - Free Report) and Cardinal Health (CAH - Free Report) .
Quest Diagnostics reported fourth-quarter 2024 adjusted EPS of $2.23, which topped the Zacks Consensus Estimate by 1.8%. Revenues of $2.62 billion beat the Zacks Consensus Estimate by 1.9%.
DGX has an earnings yield of 5.9% compared with the industry’s 4.1%. The company beat on earnings in each of the trailing four quarters, the average surprise being 3.8%.
ResMed, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%.
RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.
Cardinal Health, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $1.93, which outpaced the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.
CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.
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HAE Q3 Earnings In Line, '25 Sales View Cut, Stock Up in Aftermarket
Haemonetics Corporation (HAE - Free Report) delivered third-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.19, which rose 14.4% year over year. The bottom line was on par with the Zacks Consensus Estimate.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
On a GAAP basis, EPS was 74 cents compared with 61 cents in the prior-year quarter.
Following the earnings announcement, shares of HAE rose 0.02% in after-market trading yesterday.
HAE’s Q3 Revenues
Revenues increased 2.7% to $348.5 million, which missed the Zacks Consensus Estimate by 1.3%.
HAE’s Q3 Segmental Details
At Plasma, revenues totaled $134.2 million (accounting for 38.5% of the total revenues), down 9.1% year over year (same on an organic basis). Our model projected the unit’s revenues to be $135.4 million.
The decrease resulted from lower sales volumes in North America, which is related to the previously announced customer transition of CSL Plasma, whose non-exclusive supply agreement with the company is scheduled to expire in December 2025.
Revenues at Blood Center (20.2%) fell 2.8% (same on an organic basis) to $70.3 million. Our model forecast was $67.6 million. The downside was primarily due to the Whole Blood portfolio rationalization.
Hospital revenues (41.3%) rose 23.9% (up 12.2% on an organic basis) to $144 million. Our model projected $138.2 million in revenues for this segment.
The increase can be attributed to the recently acquired product lines within Hemostasis Management Technologies, Transfusion Management Technologies and the benefits of Sensor-Guided Technologies and Esophageal Protection. Growth in vascular closure and Blood Management Technologies also contributed to the top-line improvement.
HAE’s Margin Performance
In the third quarter of fiscal 2025, the company-adjusted gross margin was 55.5%, up 263 basis points (bps) year over year. The primary drivers of the increase were volume growth in the Hospital segment and improving portfolio mix and pricing across all business segments.
Company-adjusted operating expenses, as a percentage of revenues, were 35.1% in the third quarter of fiscal 2025 compared with 37.2% in the prior-year period.
The decrease can be attributed to operating leverage and decreased performance-based compensation, partially offset by additional growth investments.
The company-adjusted operating income was $71.3 million in the quarter under discussion, up 34.8% year over year. The adjusted operating margin was 20.4%, up 472 bps from the year-ago quarter’s level.
Haemonetics Corporation Price, Consensus and EPS Surprise
Haemonetics Corporation price-consensus-eps-surprise-chart | Haemonetics Corporation Quote
HAE’s Financial Position
Haemonetics exited the third quarter of fiscal 2025 with cash and cash equivalents of $320.8 million compared with $299.3 million at the end of the fiscal second quarter. Long-term debt was $1.22 billion, almost consistent with the reported fiscal second-quarter figure.
The cumulative net cash flow from operating activities at the end of the third quarter of fiscal 2025 was $65.2 million compared with $117.7 million in the year-ago period.
HAE’s Updated 2025 Guidance
The company now expects fiscal 2025 GAAP revenue growth to be in the range of 3-5% (earlier 5-8% on a reported basis). Organic revenue growth is anticipated to be in the range of 0-3% (earlier 1-4%). The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.39 billion.
HAE expects full-year 2025 adjusted EPS to be in the band of $4.50-$4.70 (earlier $4.45-$4.75). The Zacks Consensus Estimate for the same is pegged at $4.59.
Our Take on HAE
Haemonetics’ fiscal third-quarter earnings met estimates while revenues missed the same. However, both the top and bottom lines increased year over year. The performance reflects the company’s progress with executing its long-range plan and responding to market trends.
HAE continues to set the standard in plasma collection, accelerating center conversions and gaining share with the newest technologies while expanding its presence and successfully addressing emerging industry trends in attractive hospital markets. The expansion of both margins in the quarter bodes well.
Meanwhile, third-quarter revenues in both the Plasma and Blood Center businesses decreased. Additionally, the lowered fiscal 2025 sales growth guidance looks discouraging.
HAE’s Zacks Rank & Key Picks
Haemonetics currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Quest Diagnostics (DGX - Free Report) , ResMed (RMD - Free Report) and Cardinal Health (CAH - Free Report) .
Quest Diagnostics reported fourth-quarter 2024 adjusted EPS of $2.23, which topped the Zacks Consensus Estimate by 1.8%. Revenues of $2.62 billion beat the Zacks Consensus Estimate by 1.9%.
DGX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DGX has an earnings yield of 5.9% compared with the industry’s 4.1%. The company beat on earnings in each of the trailing four quarters, the average surprise being 3.8%.
ResMed, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%.
RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.
Cardinal Health, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $1.93, which outpaced the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.
CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.