We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Retain Haemonetics (HAE) Stock For Now
Read MoreHide Full Article
Haemonetics Corporation (HAE - Free Report) is gaining from strength in the Hospital business. Robust growth across the company’s most extensive hospital product line, Hemostasis Management, seems encouraging. The ongoing rebound in plasma collections buoys optimism. However, increasing costs and stiff rivalry raise concerns.
In the past year, the Zacks Rank #3 (Hold) stock has gained 5.2% versus a 32.4% fall of the industry and a 10.9% decline of the S&P 500.
The renowned medical device company has a market capitalization of $3.43 billion. In the past five years, the company registered earnings growth of 8.9% compared with the industry’s 9.0% rise and the S&P 500’s 13.4% increase. Its earnings surpassed estimates in the trailing four quarters and missed on one occasion, delivering an average surprise of 5.5%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Factors At Play
Recovery Across Businesses: Haemonetics’ has been registering strong business growth, backed by procedure recovery in the Hospital business, blood donor resilience in blood centers, and rollouts of Persona technology and NexSys. The Hospital business revenues increased 19% in the fourth quarter of fiscal 2022. The upside was primarily driven by a continued rebound in procedures amid challenges posed by hospital staffing shortages and supply-chain disruptions in the Asia Pacific. Added to this, plasma collections continued to recover in the quarter under review.
Potential Upsides of Plasma Franchise: The Plasma franchise has been witnessing strong growth for quite some time. In the fiscal fourth quarter, the Plasma franchise saw revenue growth of 10%. The company continued to benefit from the NexSys device and NexLynk donor management software backed by increased customer adoption. The company’s product development efforts continue to help customers improve center operations by driving collection growth and improving Plasma volume output while increasing donor retention and satisfaction.
Huge Potential of Hemostasis Management Franchise: Hemostasis Management saw revenue growth of 12% in the fiscal fourth quarter. In the United States, the largest market, TEG, delivered robust growth. The company also benefited from strong growth in Europe, primarily driven by the successful market penetration of ClotPro. Meanwhile, Transfusion Management revenues grew 18%, driven by BloodTrack and SafeTrace Tx.
Haemonetics continues to invest in its innovation agenda through clinical trials that build evidence for its Hemostasis Management products.
Downsides
Sluggish Blood Center Performance: Blood Center revenues declined 0.9% in the fiscal fourth quarter due to the pandemic-led business disruptions. Moreover, whole Blood revenues declined 3% due to blood center staffing shortages and previously discontinued customer contracts in North America. For 2023, the company expects Blood Center revenues to decline 4-7%.
Rising Costs: Adjusted operating expenses in the fiscal fourth quarter were up 16.4% from the year-ago quarter. This increase was primarily driven by the acquisition of the Vascular Closure business and an increase in freight costs.
Competitive Landscape: Haemonetics operates in a very competitive environment, both for manual and automated systems, which includes companies like MAK Systems and ROTEM analyzers, among others. Slower-than-expected product adoption by customers, especially the American Red Cross, might reduce the company’s revenues and profit.
Estimate Trend
In the past 60 days, the Zacks Consensus Estimate for Haemonetics’ fiscal 2023 earnings has moved up by 2.3% to $2.72.
The Zacks Consensus Estimate for fiscal 2023 revenues is pegged at $1.06 billion, suggesting a 6.4% rise from the year-ago reported number.
Key Picks
A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Novo Nordisk (NVO - Free Report) and Merck & Co., Inc. (MRK - Free Report) .
AMN Healthcare has a long-term earnings growth rate of 1.1%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.6%, on average. It currently flaunts a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has gained 13.6% against the industry’s 12.5% fall.
Novo Nordisk has a long-term earnings growth rate of 15.6%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 7.6%, on average. It currently flaunts a Zacks Rank #2.
Novo Nordisk has outperformed its industry in the past year. NVO has gained 27% against the industry’s 16.3% growth.
Merck has a long-term earnings growth rate of 10.1%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13.4%, on average. It currently carries a Zacks Rank #2.
Merck has outperformed its industry in the past year. MRK has gained 19.3% against the industry’s 16.3% growth.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Here's Why You Should Retain Haemonetics (HAE) Stock For Now
Haemonetics Corporation (HAE - Free Report) is gaining from strength in the Hospital business. Robust growth across the company’s most extensive hospital product line, Hemostasis Management, seems encouraging. The ongoing rebound in plasma collections buoys optimism. However, increasing costs and stiff rivalry raise concerns.
In the past year, the Zacks Rank #3 (Hold) stock has gained 5.2% versus a 32.4% fall of the industry and a 10.9% decline of the S&P 500.
The renowned medical device company has a market capitalization of $3.43 billion. In the past five years, the company registered earnings growth of 8.9% compared with the industry’s 9.0% rise and the S&P 500’s 13.4% increase. Its earnings surpassed estimates in the trailing four quarters and missed on one occasion, delivering an average surprise of 5.5%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Factors At Play
Recovery Across Businesses: Haemonetics’ has been registering strong business growth, backed by procedure recovery in the Hospital business, blood donor resilience in blood centers, and rollouts of Persona technology and NexSys. The Hospital business revenues increased 19% in the fourth quarter of fiscal 2022. The upside was primarily driven by a continued rebound in procedures amid challenges posed by hospital staffing shortages and supply-chain disruptions in the Asia Pacific. Added to this, plasma collections continued to recover in the quarter under review.
Potential Upsides of Plasma Franchise: The Plasma franchise has been witnessing strong growth for quite some time. In the fiscal fourth quarter, the Plasma franchise saw revenue growth of 10%. The company continued to benefit from the NexSys device and NexLynk donor management software backed by increased customer adoption. The company’s product development efforts continue to help customers improve center operations by driving collection growth and improving Plasma volume output while increasing donor retention and satisfaction.
Huge Potential of Hemostasis Management Franchise: Hemostasis Management saw revenue growth of 12% in the fiscal fourth quarter. In the United States, the largest market, TEG, delivered robust growth. The company also benefited from strong growth in Europe, primarily driven by the successful market penetration of ClotPro. Meanwhile, Transfusion Management revenues grew 18%, driven by BloodTrack and SafeTrace Tx.
Haemonetics continues to invest in its innovation agenda through clinical trials that build evidence for its Hemostasis Management products.
Downsides
Sluggish Blood Center Performance: Blood Center revenues declined 0.9% in the fiscal fourth quarter due to the pandemic-led business disruptions. Moreover, whole Blood revenues declined 3% due to blood center staffing shortages and previously discontinued customer contracts in North America. For 2023, the company expects Blood Center revenues to decline 4-7%.
Rising Costs: Adjusted operating expenses in the fiscal fourth quarter were up 16.4% from the year-ago quarter. This increase was primarily driven by the acquisition of the Vascular Closure business and an increase in freight costs.
Competitive Landscape: Haemonetics operates in a very competitive environment, both for manual and automated systems, which includes companies like MAK Systems and ROTEM analyzers, among others. Slower-than-expected product adoption by customers, especially the American Red Cross, might reduce the company’s revenues and profit.
Estimate Trend
In the past 60 days, the Zacks Consensus Estimate for Haemonetics’ fiscal 2023 earnings has moved up by 2.3% to $2.72.
The Zacks Consensus Estimate for fiscal 2023 revenues is pegged at $1.06 billion, suggesting a 6.4% rise from the year-ago reported number.
Key Picks
A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Novo Nordisk (NVO - Free Report) and Merck & Co., Inc. (MRK - Free Report) .
AMN Healthcare has a long-term earnings growth rate of 1.1%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.6%, on average. It currently flaunts a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has gained 13.6% against the industry’s 12.5% fall.
Novo Nordisk has a long-term earnings growth rate of 15.6%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 7.6%, on average. It currently flaunts a Zacks Rank #2.
Novo Nordisk has outperformed its industry in the past year. NVO has gained 27% against the industry’s 16.3% growth.
Merck has a long-term earnings growth rate of 10.1%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13.4%, on average. It currently carries a Zacks Rank #2.
Merck has outperformed its industry in the past year. MRK has gained 19.3% against the industry’s 16.3% growth.