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Haemonetics (HAE) to Report Q4 Earnings: What's in the Cards?

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Haemonetics Corporation (HAE - Free Report) is slated to report fourth-quarter and fiscal year 2021 results on May 13, before the opening bell.

In the last-reported quarter, the company reported adjusted earnings per share of 81 cents, beating the Zacks Consensus Estimate by 19.1%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and missed in one, the average surprise being 12.46%.

Let’s see how things have shaped up prior to this announcement.

Factors at Play

Plasma

Haemonetics continued to benefit from the NexSys device and NexLynk donor management software (DMS) backed by increased customer adoption over the past few quarters. In this regard, during its last earnings call in February, the company noted that NexSys platform adoption is progressing well and all major customers have agreed to adopt NexSys PCS devices somewhere in their network. We expect this trend to have continued in the fourth quarter as well, adding to overall revenue growth within the Plasma segment.

However, with the current COVID-19 situation remaining more or less unchanged, we expect the pandemic to have continued to have a pronounced effect on the U.S. source plasma donor pool during the fiscal fourth quarter as well, impacting overall segment growth.

Hospital

Under Hospital business, the Hemostasis Management product line saw strong growth in the past few quarters. The product line continued to be benefit from strong capital equipment sales in the United States and sales of TEG cartridges in Europe. In January, the FDA issued a new guidance on viscoelastic testing mentioning the use of TEG devices for improved patient care during the pandemic. Considering the pandemic scenario and the higher need to treat COVID-19 patients, we expect these devices to have registered robust sales during the fiscal fourth-quarter as well, thus adding to overall growth.   

Haemonetics Corporation Price and EPS Surprise

 

Meanwhile, in February, the company noted that it has signed an agreement in China to manufacture viscoelastic testing analyzers and reagents to expand product offerings to meet the unique needs of the China market. We expect this development to have contributed positively during the fourth quarter.

Blood Center

Similar to the prior quarter, we expect the Blood Center segment to have witnessed lower-than-usual volumes because of COVID-19, thus adversely impacting the overall growth within the segment during the fiscal fourth quarter. However, the company’s apheresis devices continue to play an important role in providing essential blood products to customers over the past few quarters. Amid the ongoing healthcare situation, this trend is expected to have continued in the to-be-reported quarter as well, thus offsetting overall COVID-19 impact on the Blood Center business.

The Estimate Picture

For fourth-quarter 2021, the Zacks Consensus Estimate for total revenues is pegged at $225.2 million, implying a decline of 5.6% year over year.

The consensus estimate for earnings per share is pegged at 67 cents. The company had reported earnings per share of 69 cents in the year-ago quarter.

What Our Model Suggests

Our proven model does not conclusively predict positive earnings beat for Haemonetics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here as you will see below.

Earnings ESP: Haemonetics has an Earnings ESP of 1.50%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

Stocks Worth a Look

Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.

HCA Healthcare, Inc. HCA has an Earnings ESP of +3.26% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Encompass Health Corporation EHC currently has a Zacks Rank #2 and an Earnings ESP of +3.89%.

The Cooper Companies, Inc. COO has an Earnings ESP of +2.72% and Zacks Rank of 2, at present.

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