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Haemonetics (HAE) Up 3.2% 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 3.2% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Haemonetics Corporation delivered adjusted earnings per share of 58 cents in the first quarter of fiscal 2023, reflecting growth of 16% year over year. The bottom line also surpassed the Zacks Consensus Estimate by 9.4%.
On a GAAP basis, earnings per share were38 cents against the year-ago quarter’s loss of 9 cents.
Total Revenues
Revenues increased 14.4% (up 17% on an organic basis) to $261.5 million in the first quarter of fiscal 2023. The top line beat the Zacks Consensus Estimate by 4.2%.
The year-over-year increase in revenues was supported by strong revenue performance across the Hospital business, particularly in Hemostasis Management and Vascular Closure.
Segments in Detail
At Plasma, revenues of $102.4 million (accounting for 39.2% of total revenues) rose 42.5% year over year (up 43.9% on an organic basis) in the reported quarter.
Revenues at Blood Center (25.1%) fell 9.9% (down 7.2% on an organic basis) to $65.7 million.
Hospital revenues (33.9%) rose 12.7% (up 14.9% on an organic basis) to $88.5 million. Under the Hospital segment, revenue growth in the Hemostasis Management and Vascular Closure product lines were 4.1% and 35.9% in the first quarter of fiscal 2023, respectively.
Service revenues (1.9%) fell 6.8% (down 2.5% on an organic basis) to $4.9 million.
Margins
The company-adjusted gross margin was 54.4%, up 712 basis points (bps) year over year. The primary drivers of this improvement were the strong volume growth in Plasma and Hospital, price and additional savings from the Operational Excellence Program, partially offset by inflationary pressures in the global manufacturing and supply chain and increased depreciation expenses.
Adjusted operating expenses in the first quarter of fiscal 2023 were $103.1 million, down 0.1% from the year-ago quarter.
The company-adjusted operating income was $39.1 million in the quarter under discussion. Adjusted operating margin was 14.9%, up 1314 bps from the year-ago quarter.
Financial Position
Haemonetics exited the first quarter of fiscal 2023 with cash and cash equivalents of $214.9 million compared with $259.5 million at the end of fiscal 2022. Long-term debt at the end ofthe fiscalfirstquarter was $763.1 million, down from $559.4 million at the end of fiscal 2022.
Cumulative net cash flow from operating activities at the end of the first quarter of fiscal 2023 was $41.9 million compared with a $1.7 million net cash used in operating activities a year ago.
Cumulative capital expenses (net of proceeds from the sale of property, plant and equipment) were $44.9 million, up from the year-ago $13.4 million. It also reported free cash flow (before restructuring and turnaround costs) of $4.5 million during the same period, up 144.5% from $1.8 million a year ago.
2023 Guidance
The company has updated its outlook for 2023.
For 2023, the company now expects GAAP total revenue growth in the range of 8-11% on a reported basis (up from the prior projection of 5-9%). Organic revenue growth is currently expected in the range of 10-14% (up from the prior projection of 6-10%). The Zacks Consensus Estimate for 2023 revenues is pegged at $1.06 billion.
The company now expects full-year adjusted earnings per share in the band of $2.60-$2.90 (compared to the previous estimate of $2.50 - $2.90). The Zacks Consensus Estimate for the same is pegged at $2.72.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 9.49% due to these changes.
VGM Scores
At this time, Haemonetics has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Haemonetics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Haemonetics belongs to the Zacks Medical - Products industry. Another stock from the same industry, Boston Scientific (BSX - Free Report) , has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Boston Scientific reported revenues of $3.24 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $0.44 for the same period compares with $0.40 a year ago.
For the current quarter, Boston Scientific is expected to post earnings of $0.44 per share, indicating a change of +7.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Boston Scientific has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Haemonetics (HAE) Up 3.2% 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 3.2% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Haemonetics (HAE - Free Report) Q1 Earnings Beat Estimates, Margins Up
Haemonetics Corporation delivered adjusted earnings per share of 58 cents in the first quarter of fiscal 2023, reflecting growth of 16% year over year. The bottom line also surpassed the Zacks Consensus Estimate by 9.4%.
On a GAAP basis, earnings per share were38 cents against the year-ago quarter’s loss of 9 cents.
Total Revenues
Revenues increased 14.4% (up 17% on an organic basis) to $261.5 million in the first quarter of fiscal 2023. The top line beat the Zacks Consensus Estimate by 4.2%.
The year-over-year increase in revenues was supported by strong revenue performance across the Hospital business, particularly in Hemostasis Management and Vascular Closure.
Segments in Detail
At Plasma, revenues of $102.4 million (accounting for 39.2% of total revenues) rose 42.5% year over year (up 43.9% on an organic basis) in the reported quarter.
Revenues at Blood Center (25.1%) fell 9.9% (down 7.2% on an organic basis) to $65.7 million.
Hospital revenues (33.9%) rose 12.7% (up 14.9% on an organic basis) to $88.5 million. Under the Hospital segment, revenue growth in the Hemostasis Management and Vascular Closure product lines were 4.1% and 35.9% in the first quarter of fiscal 2023, respectively.
Service revenues (1.9%) fell 6.8% (down 2.5% on an organic basis) to $4.9 million.
Margins
The company-adjusted gross margin was 54.4%, up 712 basis points (bps) year over year. The primary drivers of this improvement were the strong volume growth in Plasma and Hospital, price and additional savings from the Operational Excellence Program, partially offset by inflationary pressures in the global manufacturing and supply chain and increased depreciation expenses.
Adjusted operating expenses in the first quarter of fiscal 2023 were $103.1 million, down 0.1% from the year-ago quarter.
The company-adjusted operating income was $39.1 million in the quarter under discussion. Adjusted operating margin was 14.9%, up 1314 bps from the year-ago quarter.
Financial Position
Haemonetics exited the first quarter of fiscal 2023 with cash and cash equivalents of $214.9 million compared with $259.5 million at the end of fiscal 2022. Long-term debt at the end ofthe fiscalfirstquarter was $763.1 million, down from $559.4 million at the end of fiscal 2022.
Cumulative net cash flow from operating activities at the end of the first quarter of fiscal 2023 was $41.9 million compared with a $1.7 million net cash used in operating activities a year ago.
Cumulative capital expenses (net of proceeds from the sale of property, plant and equipment) were $44.9 million, up from the year-ago $13.4 million. It also reported free cash flow (before restructuring and turnaround costs) of $4.5 million during the same period, up 144.5% from $1.8 million a year ago.
2023 Guidance
The company has updated its outlook for 2023.
For 2023, the company now expects GAAP total revenue growth in the range of 8-11% on a reported basis (up from the prior projection of 5-9%). Organic revenue growth is currently expected in the range of 10-14% (up from the prior projection of 6-10%). The Zacks Consensus Estimate for 2023 revenues is pegged at $1.06 billion.
The company now expects full-year adjusted earnings per share in the band of $2.60-$2.90 (compared to the previous estimate of $2.50 - $2.90). The Zacks Consensus Estimate for the same is pegged at $2.72.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 9.49% due to these changes.
VGM Scores
At this time, Haemonetics has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Haemonetics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Haemonetics belongs to the Zacks Medical - Products industry. Another stock from the same industry, Boston Scientific (BSX - Free Report) , has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Boston Scientific reported revenues of $3.24 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $0.44 for the same period compares with $0.40 a year ago.
For the current quarter, Boston Scientific is expected to post earnings of $0.44 per share, indicating a change of +7.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Boston Scientific has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.