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Haemonetics (HAE) Up 4.4% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Haemonetics (HAE - Free Report) . Shares have added about 4.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Haemonetics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Haemonetics Q3 Earnings Top Estimates, Revenues Miss
Haemonetics delivered adjusted earnings per share of 84 cents in the third quarter of fiscal 2022, reflecting growth of 3.7% year over year. The bottom line also surpassed the Zacks Consensus Estimate by 12%.
On a GAAP basis, earnings per share was 45 cents compared with the year-ago earnings per share of 62 cents, reflecting a 27.4% decline.
Total Revenues
Revenues increased 8.1% (down 0.8% on an organic basis) to $259.8 million in the third quarter of fiscal 2022. The top line, however, lagged the Zacks Consensus Estimate by 2.6%.
The year-over-year increase in revenues was supported by strong revenue performance across the Hospital business, particularly in Hemostasis Management and Vascular Closure, which helped reduce the impact of a prolonged recovery in plasma volumes.
Revenues by Product Categories
At Plasma, revenues of $96.5 million (accounting for 37.1% of total revenues) fell 5.4% year over year (down 2% on an organic basis) in the reported quarter.
Revenues at Blood Center (29.1%) fell 6.5% (down 7.3% on an organic basis) to $75.7 million.
Hospital revenues (31.7%) rose 56.3% (up 10.5% on an organic basis) to $82.3 million. Under the Hospital segment, revenue growth in the Hemostasis Management product line was 18% in the third quarter of fiscal 2022 on growing uptake of the company’s TEG 6s devices and increased utilization of cartridges in North America.
Service revenues (2.1%) rose 9.8% (up 9.3% on an organic basis) to $5.3 million.
Margins
The company-adjusted gross margin was 53.3%, up 331 basis points (bps) year over year. The primary drivers of this improvement were the addition of the Vascular Closure business, incremental gross savings from the Operational Excellence Program and favorable product mix, given a higher proportion of revenues being derived from the high-margin Hospital business. However, these benefits were partially offset by inflationary pressures in the global manufacturing and supply chain.
Adjusted operating expenses in the third quarter of fiscal 2022 were $90.8 million, up 24.1% from the year-ago quarter. This increase was primarily driven by the acquisition of the Vascular Closure business and an increase in freight costs.
The company-adjusted operating income was $47.8 million in the quarter under discussion, up 1.5% year over year. Adjusted operating margin was 18.4%, down 120 bps compared to the year-ago quarter.
Financial Position
Haemonetics exited the third quarter of fiscal 2022 with cash and cash equivalents of $236.9 million compared with $192.4 million at the end of second-quarter 2022. Long-term debt at the end of third-quarter fiscal 2022 was $633.1 million, down from $698 million at the end of second-quarter fiscal 2022.
Cumulative net cash flow from operating activities at the end of third-quarter fiscal 2022 was $104.2 million compared with a $107.3-million net cash flow from operating activities a year ago.
Cumulative capital expenses (net of proceeds from the sale of property, plant and equipment) incurred by the company were $59.9 million, up from the year-ago $24.3 million. It also reported free cash flow (before restructuring and turnaround costs) of $75.8 million during the same period, down 23.5% from $99.1 million a year ago.
2022 Guidance Updated
Haemonetics has narrowed its full-year 2022 financial guidance. The company expects GAAP total revenue growth in the range of 12-14% on a reported basis (down from the previously guided range of 13-17%). The organic growth projection is pinned at 5-7% (the prior growth projection was 7-10%). The Zacks Consensus Estimate for 2022 revenues is pegged at $997 million.
The company expects full-year adjusted EPS in the band of $2.45-$2.55 (the previous guided range was $2.40-$2.65). The Zacks Consensus Estimate for the same is pegged at $2.54.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -14.8% due to these changes.
VGM Scores
Currently, Haemonetics has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, 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.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Haemonetics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Haemonetics (HAE) Up 4.4% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Haemonetics (HAE - Free Report) . Shares have added about 4.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Haemonetics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Haemonetics Q3 Earnings Top Estimates, Revenues Miss
Haemonetics delivered adjusted earnings per share of 84 cents in the third quarter of fiscal 2022, reflecting growth of 3.7% year over year. The bottom line also surpassed the Zacks Consensus Estimate by 12%.
On a GAAP basis, earnings per share was 45 cents compared with the year-ago earnings per share of 62 cents, reflecting a 27.4% decline.
Total Revenues
Revenues increased 8.1% (down 0.8% on an organic basis) to $259.8 million in the third quarter of fiscal 2022. The top line, however, lagged the Zacks Consensus Estimate by 2.6%.
The year-over-year increase in revenues was supported by strong revenue performance across the Hospital business, particularly in Hemostasis Management and Vascular Closure, which helped reduce the impact of a prolonged recovery in plasma volumes.
Revenues by Product Categories
At Plasma, revenues of $96.5 million (accounting for 37.1% of total revenues) fell 5.4% year over year (down 2% on an organic basis) in the reported quarter.
Revenues at Blood Center (29.1%) fell 6.5% (down 7.3% on an organic basis) to $75.7 million.
Hospital revenues (31.7%) rose 56.3% (up 10.5% on an organic basis) to $82.3 million. Under the Hospital segment, revenue growth in the Hemostasis Management product line was 18% in the third quarter of fiscal 2022 on growing uptake of the company’s TEG 6s devices and increased utilization of cartridges in North America.
Service revenues (2.1%) rose 9.8% (up 9.3% on an organic basis) to $5.3 million.
Margins
The company-adjusted gross margin was 53.3%, up 331 basis points (bps) year over year. The primary drivers of this improvement were the addition of the Vascular Closure business, incremental gross savings from the Operational Excellence Program and favorable product mix, given a higher proportion of revenues being derived from the high-margin Hospital business. However, these benefits were partially offset by inflationary pressures in the global manufacturing and supply chain.
Adjusted operating expenses in the third quarter of fiscal 2022 were $90.8 million, up 24.1% from the year-ago quarter. This increase was primarily driven by the acquisition of the Vascular Closure business and an increase in freight costs.
The company-adjusted operating income was $47.8 million in the quarter under discussion, up 1.5% year over year. Adjusted operating margin was 18.4%, down 120 bps compared to the year-ago quarter.
Financial Position
Haemonetics exited the third quarter of fiscal 2022 with cash and cash equivalents of $236.9 million compared with $192.4 million at the end of second-quarter 2022. Long-term debt at the end of third-quarter fiscal 2022 was $633.1 million, down from $698 million at the end of second-quarter fiscal 2022.
Cumulative net cash flow from operating activities at the end of third-quarter fiscal 2022 was $104.2 million compared with a $107.3-million net cash flow from operating activities a year ago.
Cumulative capital expenses (net of proceeds from the sale of property, plant and equipment) incurred by the company were $59.9 million, up from the year-ago $24.3 million. It also reported free cash flow (before restructuring and turnaround costs) of $75.8 million during the same period, down 23.5% from $99.1 million a year ago.
2022 Guidance Updated
Haemonetics has narrowed its full-year 2022 financial guidance. The company expects GAAP total revenue growth in the range of 12-14% on a reported basis (down from the previously guided range of 13-17%). The organic growth projection is pinned at 5-7% (the prior growth projection was 7-10%). The Zacks Consensus Estimate for 2022 revenues is pegged at $997 million.
The company expects full-year adjusted EPS in the band of $2.45-$2.55 (the previous guided range was $2.40-$2.65). The Zacks Consensus Estimate for the same is pegged at $2.54.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -14.8% due to these changes.
VGM Scores
Currently, Haemonetics has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, 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.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Haemonetics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.