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.
Haemonetics (HAE) Up 11% in a Year: Will the Rally Continue?
Read MoreHide Full Article
Haemonetics Corporation‘s (HAE - Free Report) shares have surged 11% in the past year compared with the industry’s rise of 1.7%. The Medical sector has declined 0.8% in the said time frame. The company has a market capitalization of $4.32 billion.
The company’s consistent growth performance reflects its strategic focus on establishing leading positions in high-growth markets to generate solid financial returns. This Zacks Rank 2 (Buy) stock’s earnings are expected to rise 10% in the next five years. HAE’s ROE for the trailing 12 months was 22.3% compared with the industry average of (12.7%).
Will the Upside Continue?
The Zacks Consensus Estimate for HAE’s 2024 earnings is pegged at $3.89, indicating a 28.4% increase from the year-ago reported figure. The consensus estimate for 2024 revenues is pegged at $1.27 billion, indicating a year-over-year improvement of 8.7%.
Haemonetics is benefiting from the strong momentum in Plasma collections. In the United States, Haemonetics’ recently reported second quarter of fiscal 2023 marked its eighth consecutive quarter of growth exceeding historical seasonality, driven by an industry striving to double collections by 2025 and the rising demand for plasma-based medicines.
In terms of the latest developments, North America disposables rose 9%, disproportionately driven by growth in volume and price among customers on NexSys with Persona. The company noted taking the necessary steps to support the demand for disposables and reinforce its market-leading position through additional innovation that further reduces the cost per liter. For the full year, HAE increased its Plasma organic revenue growth guidance from 8-11%, up to 10-12%.
Image Source: Zacks Investment Research
On a promising note, Haemonetics continues to expand the hospital business with procedure-enabling technologies in high-growth areas like interventional cardiology and electrophysiology, creating additional opportunities in the total addressable market of nearly $3.7 billion. With the commercial strategy set on targeting the top 600 U.S. hospitals, the company is also making significant progress, strengthening its relationship with the top accounts responsible for nearly 90% of procedures.
Haemonetics’ Hemostasis Management business revenues continue to grow, driven by the strong utilization of TEG disposables in the United States and benefits from price. The company expects 16-18% organic growth in the Hospital business for the full year, with growth in Hemostasis Management consistent with the revenue growth rate delivered in fiscal 2023.
A strong solvency position is an added advantage. Haemonetics exited the fiscal second quarter with cash and cash equivalents of $351 million and insignificantly low short-term debt and current maturities of $14 million. The long-term debt was $748.7 million compared with $751.4 million at the end of the fiscal first quarter. The company anticipates utilizing the growing capital capacity throughout its long-term plan to accelerate top- and bottom-line growth through organic and inorganic growth investments and opportunistic share buybacks.
Moreover, a raised guidance is an indicator of future growth. For 2024, the company expects total GAAP revenue growth in the range of 7-9% on a reported basis (earlier guidance was 6-9%). Organic revenue growth is anticipated at 8-10% (earlier guidance was 7-10%). HAE expects the full-year adjusted earnings per share in the band of $3.75-$3.95 ($3.60-$3.90).
Estimate Trends
The Zacks Consensus Estimate for HAE’s 2024 and 2025 has moved 1.8% and 1.9% north, respectively, in the past 90 days, reflecting analyst optimism.
Key Picks
Some other top-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , HealthEquity, Inc. (HQY - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 38.5% compared with the industry’s 10% rise in the past year.
HealthEquity, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 27.5%. HQY’s earnings surpassed estimates in each of the trailing four quarters, with the average being 16.5%.
HealthEquity has gained 9.6% against the industry’s 2% decline over the past year.
Integer Holdings, carrying a Zacks Rank of 2, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.9%.
Integer Holdings’ shares have rallied 44.7% compared with the industry’s 1.7% rise in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Haemonetics (HAE) Up 11% in a Year: Will the Rally Continue?
Haemonetics Corporation‘s (HAE - Free Report) shares have surged 11% in the past year compared with the industry’s rise of 1.7%. The Medical sector has declined 0.8% in the said time frame. The company has a market capitalization of $4.32 billion.
The company’s consistent growth performance reflects its strategic focus on establishing leading positions in high-growth markets to generate solid financial returns. This Zacks Rank 2 (Buy) stock’s earnings are expected to rise 10% in the next five years. HAE’s ROE for the trailing 12 months was 22.3% compared with the industry average of (12.7%).
Will the Upside Continue?
The Zacks Consensus Estimate for HAE’s 2024 earnings is pegged at $3.89, indicating a 28.4% increase from the year-ago reported figure. The consensus estimate for 2024 revenues is pegged at $1.27 billion, indicating a year-over-year improvement of 8.7%.
Haemonetics is benefiting from the strong momentum in Plasma collections. In the United States, Haemonetics’ recently reported second quarter of fiscal 2023 marked its eighth consecutive quarter of growth exceeding historical seasonality, driven by an industry striving to double collections by 2025 and the rising demand for plasma-based medicines.
In terms of the latest developments, North America disposables rose 9%, disproportionately driven by growth in volume and price among customers on NexSys with Persona. The company noted taking the necessary steps to support the demand for disposables and reinforce its market-leading position through additional innovation that further reduces the cost per liter. For the full year, HAE increased its Plasma organic revenue growth guidance from 8-11%, up to 10-12%.
On a promising note, Haemonetics continues to expand the hospital business with procedure-enabling technologies in high-growth areas like interventional cardiology and electrophysiology, creating additional opportunities in the total addressable market of nearly $3.7 billion. With the commercial strategy set on targeting the top 600 U.S. hospitals, the company is also making significant progress, strengthening its relationship with the top accounts responsible for nearly 90% of procedures.
Haemonetics’ Hemostasis Management business revenues continue to grow, driven by the strong utilization of TEG disposables in the United States and benefits from price. The company expects 16-18% organic growth in the Hospital business for the full year, with growth in Hemostasis Management consistent with the revenue growth rate delivered in fiscal 2023.
A strong solvency position is an added advantage. Haemonetics exited the fiscal second quarter with cash and cash equivalents of $351 million and insignificantly low short-term debt and current maturities of $14 million. The long-term debt was $748.7 million compared with $751.4 million at the end of the fiscal first quarter. The company anticipates utilizing the growing capital capacity throughout its long-term plan to accelerate top- and bottom-line growth through organic and inorganic growth investments and opportunistic share buybacks.
Moreover, a raised guidance is an indicator of future growth. For 2024, the company expects total GAAP revenue growth in the range of 7-9% on a reported basis (earlier guidance was 6-9%). Organic revenue growth is anticipated at 8-10% (earlier guidance was 7-10%). HAE expects the full-year adjusted earnings per share in the band of $3.75-$3.95 ($3.60-$3.90).
Estimate Trends
The Zacks Consensus Estimate for HAE’s 2024 and 2025 has moved 1.8% and 1.9% north, respectively, in the past 90 days, reflecting analyst optimism.
Key Picks
Some other top-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , HealthEquity, Inc. (HQY - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 38.5% compared with the industry’s 10% rise in the past year.
HealthEquity, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 27.5%. HQY’s earnings surpassed estimates in each of the trailing four quarters, with the average being 16.5%.
HealthEquity has gained 9.6% against the industry’s 2% decline over the past year.
Integer Holdings, carrying a Zacks Rank of 2, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.9%.
Integer Holdings’ shares have rallied 44.7% compared with the industry’s 1.7% rise in the past year.