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Haemonetics (HAE) Q2 Earnings Beat Estimates, 2023 View Up
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Haemonetics Corporation (HAE - Free Report) delivered adjusted earnings per share (EPS) of 83 cents for the second quarter of fiscal 2023, reflecting growth of 38.3% year over year. The bottom line also surpassed the Zacks Consensus Estimate by 18.6%.
On a GAAP basis, EPS was 64 cents, a 120.7% surge year over year.
Total Revenues
Revenues increased 24% (up 27.4% on an organic basis) to $297.5 million in the second quarter of fiscal 2023. The top line beat the Zacks Consensus Estimate by 8.6%.
The year-over-year increase in revenues was supported by strong revenue performance across the Hospital business, particularly in Hemostasis Management and Vascular Closure.
Segments in Detail
At Plasma, revenues of $127.9 million (accounting for 42.9% of total revenues) rose 56.1% year over year (up 58.3% on an organic basis) in the reported quarter.
Revenues at Blood Center (24.8%) fell 4% (up 0.5% on an organic basis) to $73.7 million.
Haemonetics Corporation Price, Consensus and EPS Surprise
Hospital revenues (30.5%) rose 19.1% (up 21.9% on an organic basis) to $90.8 million. Under the Hospital segment, despite continued macroeconomic challenges, including staffing shortages, hospital capital budget constraints in the United States and Europe, and continued geopolitical risk, the company’s revenues and market share grew meaningfully.
Service revenues (accounting for the rest) rose 3% (up 9.3% on an organic basis) to $5.1 million.
Margins
The fiscal-second quarter gross margin was 53.1%, up 199 basis points (bps) year over year. The company-adjusted gross margin was 53.7%, an increase of 80 bps compared with the first half of the prior year. Adjusted gross margin benefited from volume and mix, particularly due to strong volume growth in plasma and hospital as well as additional savings from the Operational Excellence Program.
Adjusted operating margin was 18.3%, up 338 bps from the year-ago quarter. According to the company, the Operational Excellence Program is on-track to deliver additional savings of approximately $26 million in fiscal 2023 and total cumulative savings of $96 million by the end of the fiscal year.
Financial Position
Haemonetics exited the second quarter of fiscal 2023 with cash and cash equivalents of $241.2 million compared with $214.9 million at the end of the first quarter of fiscal 2022. Long-term debt at the end of the fiscal second quarter was $759.6 million, down from $763.1 million at the end of fiscal 2022.
Cumulative net cash flow from operating activities at the end of the second quarter of fiscal 2023 was $129 million compared with a $41.8 million net cash used in operating activities a year ago.
As part of its previously announced $300 million share repurchase program, the company repurchased 997,406 shares of its common shares for $75.0 million via an accelerated share repurchase program.
2023 Guidance
The company updated its outlook for 2023.
For 2023, the company now expects GAAP total revenue growth in the range of 12-15% on a reported basis (up from the prior projection of 8-11%). Organic revenue growth is currently expected in the range of 15-18% (up from the prior projection of 10-14%). The Zacks Consensus Estimate for 2023 revenues is pegged at $1.11 billion.
The company now expects full-year adjusted earnings per share in the band of $2.70-$3.00 (compared with the previous estimate of $2.60-$2.90). The Zacks Consensus Estimate for the same is pegged at $2.86.
Our Take
Haemonetics exited the second quarter of fiscal 2023 with better-than-expected earnings and revenues. The robust performance of the Plasma and Hospital business, with continued strength in the Hemostasis Management product line, instills optimism. Robust contributions from the Vascular Closure business also seem promising. The expansion of both margins is an added advantage. The raised full-year outlook for revenues and EPS indicates the continuity of this growth momentum.
However, the year-over-year decline in the company’s Blood Center business raises apprehension.
Zacks Rank and Key Picks
Haemonetics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are AMN Healthcare Services, Inc. (AMN - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $2.57, which beat the Zacks Consensus Estimate by 10.3%. Revenues of $1.14 billion outpaced the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 10.9%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 44.9% for the full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Merit Medical, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.
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Haemonetics (HAE) Q2 Earnings Beat Estimates, 2023 View Up
Haemonetics Corporation (HAE - Free Report) delivered adjusted earnings per share (EPS) of 83 cents for the second quarter of fiscal 2023, reflecting growth of 38.3% year over year. The bottom line also surpassed the Zacks Consensus Estimate by 18.6%.
On a GAAP basis, EPS was 64 cents, a 120.7% surge year over year.
Total Revenues
Revenues increased 24% (up 27.4% on an organic basis) to $297.5 million in the second quarter of fiscal 2023. The top line beat the Zacks Consensus Estimate by 8.6%.
The year-over-year increase in revenues was supported by strong revenue performance across the Hospital business, particularly in Hemostasis Management and Vascular Closure.
Segments in Detail
At Plasma, revenues of $127.9 million (accounting for 42.9% of total revenues) rose 56.1% year over year (up 58.3% on an organic basis) in the reported quarter.
Revenues at Blood Center (24.8%) fell 4% (up 0.5% on an organic basis) to $73.7 million.
Haemonetics Corporation Price, Consensus and EPS Surprise
Haemonetics Corporation price-consensus-eps-surprise-chart | Haemonetics Corporation Quote
Hospital revenues (30.5%) rose 19.1% (up 21.9% on an organic basis) to $90.8 million. Under the Hospital segment, despite continued macroeconomic challenges, including staffing shortages, hospital capital budget constraints in the United States and Europe, and continued geopolitical risk, the company’s revenues and market share grew meaningfully.
Service revenues (accounting for the rest) rose 3% (up 9.3% on an organic basis) to $5.1 million.
Margins
The fiscal-second quarter gross margin was 53.1%, up 199 basis points (bps) year over year. The company-adjusted gross margin was 53.7%, an increase of 80 bps compared with the first half of the prior year. Adjusted gross margin benefited from volume and mix, particularly due to strong volume growth in plasma and hospital as well as additional savings from the Operational Excellence Program.
Adjusted operating margin was 18.3%, up 338 bps from the year-ago quarter. According to the company, the Operational Excellence Program is on-track to deliver additional savings of approximately $26 million in fiscal 2023 and total cumulative savings of $96 million by the end of the fiscal year.
Financial Position
Haemonetics exited the second quarter of fiscal 2023 with cash and cash equivalents of $241.2 million compared with $214.9 million at the end of the first quarter of fiscal 2022. Long-term debt at the end of the fiscal second quarter was $759.6 million, down from $763.1 million at the end of fiscal 2022.
Cumulative net cash flow from operating activities at the end of the second quarter of fiscal 2023 was $129 million compared with a $41.8 million net cash used in operating activities a year ago.
As part of its previously announced $300 million share repurchase program, the company repurchased 997,406 shares of its common shares for $75.0 million via an accelerated share repurchase program.
2023 Guidance
The company updated its outlook for 2023.
For 2023, the company now expects GAAP total revenue growth in the range of 12-15% on a reported basis (up from the prior projection of 8-11%). Organic revenue growth is currently expected in the range of 15-18% (up from the prior projection of 10-14%). The Zacks Consensus Estimate for 2023 revenues is pegged at $1.11 billion.
The company now expects full-year adjusted earnings per share in the band of $2.70-$3.00 (compared with the previous estimate of $2.60-$2.90). The Zacks Consensus Estimate for the same is pegged at $2.86.
Our Take
Haemonetics exited the second quarter of fiscal 2023 with better-than-expected earnings and revenues. The robust performance of the Plasma and Hospital business, with continued strength in the Hemostasis Management product line, instills optimism. Robust contributions from the Vascular Closure business also seem promising. The expansion of both margins is an added advantage. The raised full-year outlook for revenues and EPS indicates the continuity of this growth momentum.
However, the year-over-year decline in the company’s Blood Center business raises apprehension.
Zacks Rank and Key Picks
Haemonetics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are AMN Healthcare Services, Inc. (AMN - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $2.57, which beat the Zacks Consensus Estimate by 10.3%. Revenues of $1.14 billion outpaced the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 10.9%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 44.9% for the full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Merit Medical, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.