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Haemonetics (HAE) Down 2.2% Since Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Haemonetics Corporation (HAE - Free Report) . Shares have lost about 2.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Haemonetics reported adjusted earnings per share (EPS) of $0.39 in the fourth quarter of fiscal 2017, up 5.4% year over year. The figure also beat the Zacks Consensus Estimate by the same margin.
On a reported basis, Haemonetics posted net loss of $51.1 million or $0.98 per share, compared with the year-ago quarter’s net loss of $8.7 million or a loss of $0.17.
Full-year 2017 adjusted EPS came in at $1.53, down 6% from the prior fiscal. The figure has however surpassed the Zacks Consensus Estimate of $1.50.
Total Revenue
Revenues declined 6% year over year (down 5% at constant exchange rate or CER) to $228.1 million in the reported quarter but managed to beat the Zacks Consensus Estimate of $221 million.
Strong performance by Haemonetics’ Plasma and Hemostasisn and Transfusion Management franchises continued in the fourth quarter, offset by weakness in Blood Center and Cell Salvage.
Geographically, in the reported quarter, Haemonetics witnessed a 7.6% year-over-year (same at CER) fall in revenues in North America to $129.3 million and international revenues declined 3.5% (down 5.1% at CER) to $98.6 million.
Full-year 2017 revenues were $886.1 million, down 2.5% from the prior fiscal (down 1% at CER), but above the Zacks Consensus Estimate of $876.8 million.
Revenues by Product Categories
Haemonetics reports operating results under four business franchises: Plasma, Haemostasis Management, Cell Processing and Blood Center.
At Plasma, Haemonetics reported revenues of $100.8 million (44.1% of total revenues), up 1.2% year over year (up 1.8% at CER).
Revenues at BloodCenter (36.1% of total revenue) declined 15.5% (down 14.9% at CER) to $82.3 million.
Hemostasis Management franchise revenues (7.6% of total revenue) rose 5.7% (up 7.5% at CER) to $17.4 million. Revenues from Cell Processing dropped 4.8% (down 3% at CER) to $27.4 million (12% of total revenue) owing to a persistent decline in Cell Saver and OrthoPAT disposables volumes, which was partly offset by Blood Track software growth.
Margins
Haemonetics’ fourth-quarter gross margin was 36%, down 80 basis points (bps) year over year.
Operating loss was $57.5 million in the fourth quarter, compared with operating loss of $5.5 million in the year-ago quarter.
Financial Position
Haemonetics exited fiscal 2017 with cash and cash equivalents of $139.5 million, compared with $129.6 millionat the end of the third quarter 2017.
Haemonetics generated operating cash flow of $159.7 million at the end of fiscal 2017, compared with $121.8 million in fiscal 2016. At the end of fiscal 2017, the company reported free cash flow (before transformation, restructuring costs and VCC capital expenditures) of $113.0 million, compared with $58.0 million in the prior year. Capital expenditures of $76.1 million has been recorded in the year, narrower than $102.4 million in the year 2016.
Fiscal 2018 Guidance
Haemonetics issued its fiscal 2018 financial guidance. The company expects full-year revenues to be in line with fiscal 2017 revenues. The guidance for Plasma revenue growth is in the range of 3% to 5%, inclusive of the SEBRA divestiture which represented 1.4% of annual Plasma revenues. The Zacks Consensus Estimate for 2018 sales is pegged at $901.2 million.
The company also expects 2018 adjusted EPS in the band of $1.55–$1.65. The Zacks Consensus Estimate of $1.57 is within the guided range.
Management continues to expect strong cash generating activity in fiscal 2018 with $140 million of cash on hand to fund business activities.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
At this time, the stock has a nice Growth Score of 'B', though it is lagging a bit on the momentum front with a 'D'. The stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value and growth investors while momentum investors may want to look elsewhere.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Haemonetics (HAE) Down 2.2% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Haemonetics Corporation (HAE - Free Report) . Shares have lost about 2.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Haemonetics Tops Q4 Earnings, Sales, Issues 2018 View
Haemonetics reported adjusted earnings per share (EPS) of $0.39 in the fourth quarter of fiscal 2017, up 5.4% year over year. The figure also beat the Zacks Consensus Estimate by the same margin.
On a reported basis, Haemonetics posted net loss of $51.1 million or $0.98 per share, compared with the year-ago quarter’s net loss of $8.7 million or a loss of $0.17.
Full-year 2017 adjusted EPS came in at $1.53, down 6% from the prior fiscal. The figure has however surpassed the Zacks Consensus Estimate of $1.50.
Total Revenue
Revenues declined 6% year over year (down 5% at constant exchange rate or CER) to $228.1 million in the reported quarter but managed to beat the Zacks Consensus Estimate of $221 million.
Strong performance by Haemonetics’ Plasma and Hemostasisn and Transfusion Management franchises continued in the fourth quarter, offset by weakness in Blood Center and Cell Salvage.
Geographically, in the reported quarter, Haemonetics witnessed a 7.6% year-over-year (same at CER) fall in revenues in North America to $129.3 million and international revenues declined 3.5% (down 5.1% at CER) to $98.6 million.
Full-year 2017 revenues were $886.1 million, down 2.5% from the prior fiscal (down 1% at CER), but above the Zacks Consensus Estimate of $876.8 million.
Revenues by Product Categories
Haemonetics reports operating results under four business franchises: Plasma, Haemostasis Management, Cell Processing and Blood Center.
At Plasma, Haemonetics reported revenues of $100.8 million (44.1% of total revenues), up 1.2% year over year (up 1.8% at CER).
Revenues at BloodCenter (36.1% of total revenue) declined 15.5% (down 14.9% at CER) to $82.3 million.
Hemostasis Management franchise revenues (7.6% of total revenue) rose 5.7% (up 7.5% at CER) to $17.4 million. Revenues from Cell Processing dropped 4.8% (down 3% at CER) to $27.4 million (12% of total revenue) owing to a persistent decline in Cell Saver and OrthoPAT disposables volumes, which was partly offset by Blood Track software growth.
Margins
Haemonetics’ fourth-quarter gross margin was 36%, down 80 basis points (bps) year over year.
Operating loss was $57.5 million in the fourth quarter, compared with operating loss of $5.5 million in the year-ago quarter.
Financial Position
Haemonetics exited fiscal 2017 with cash and cash equivalents of $139.5 million, compared with $129.6 millionat the end of the third quarter 2017.
Haemonetics generated operating cash flow of $159.7 million at the end of fiscal 2017, compared with $121.8 million in fiscal 2016. At the end of fiscal 2017, the company reported free cash flow (before transformation, restructuring costs and VCC capital expenditures) of $113.0 million, compared with $58.0 million in the prior year. Capital expenditures of $76.1 million has been recorded in the year, narrower than $102.4 million in the year 2016.
Fiscal 2018 Guidance
Haemonetics issued its fiscal 2018 financial guidance. The company expects full-year revenues to be in line with fiscal 2017 revenues. The guidance for Plasma revenue growth is in the range of 3% to 5%, inclusive of the SEBRA divestiture which represented 1.4% of annual Plasma revenues. The Zacks Consensus Estimate for 2018 sales is pegged at $901.2 million.
The company also expects 2018 adjusted EPS in the band of $1.55–$1.65. The Zacks Consensus Estimate of $1.57 is within the guided range.
Management continues to expect strong cash generating activity in fiscal 2018 with $140 million of cash on hand to fund business activities.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Haemonetics Corporation Price and Consensus
Haemonetics Corporation Price and Consensus | Haemonetics Corporation Quote
VGM Scores
At this time, the stock has a nice Growth Score of 'B', though it is lagging a bit on the momentum front with a 'D'. The stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value and growth investors while momentum investors may want to look elsewhere.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.