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Haemonetics (HAE) Q4 Earnings Top Estimates, Margins Expand
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Haemonetics Corporation (HAE - Free Report) delivered adjusted earnings per share (EPS) of 90 cents for the fourth quarter of fiscal 2024, up 16.9% year over year. The bottom line surpassed the Zacks Consensus Estimate by 2.3%.
On a GAAP basis, EPS was 40 cents, down 29.8% from the prior-year quarter’s levels.
For the full year, adjusted earnings were $3.96 per share, up 30.7% from the year-ago period’s figure. It beats the Zacks Consensus Estimate by 03%.
Total Revenues
Revenues increased 12.8% to $343.3 million in the fourth quarter of fiscal 2024. The top line exceeded the Zacks Consensus Estimate by 5%. The uptick was driven by growth across the Plasma and Hospital segments.
Total revenues in 2024 were $1.31 billion, up 12% from the year-ago period’s tally. The figure beat the Zacks Consensus Estimate by 1.6%.
Segments in Detail
At Plasma, revenues of $138.6 million rose 5.7% year over year (up 5.6% on an organic basis) in the reported quarter. The upside was primarily driven by disposable volume and software. This compares with our model projection of $135 million for the quarter reported.
Blood Center registered revenues of $70.2 million, up 4.5% (up 7.1% on an organic basis). The uptick was driven by increasing disposable revenues across plasma collection centers in Egypt, continued strength in red cell collections in the United States and strong demand for platelets across key markets. Our model projection for the same was $66.3 million for the fiscal fourth quarter.
In the Hospital segment, revenues rose 28.1% (up 18.7% on an organic basis) to $129.2 million, primarily driven by growth in Vascular Closure and Hemostasis Management. This compares with our model projection of $117.9 million for the said quarter.
Service revenues of $5.2 million rose 1.2% (up 1% on an organic basis). This compares favorably with our model projection of $5.2 million for the fiscal fourth quarter.
Margins
In fourth-quarter fiscal 2024, the company-adjusted gross margin was 54%, up 220 basis points (bps) year over year. The primary drivers of the increase in the gross margin percentage were price, volume and a favorable mix, partially offset by the impact of foreign exchange.
Company-adjusted operating expenses, as a percentage of revenues, were 35.2% in fourth-quarter fiscal 2024 compared with 34.0% in the prior-year period. The increase in adjusted operating expenses, as a percentage of revenues, was primarily driven by continuous growth investments, the recent acquisition of OpSens Inc. and freight, partially offset by operating leverage.
The company-adjusted operating income was $64.6 million in the quarter under discussion, up 19.8% year over year. The adjusted operating margin was 18.8%, up 110 bps from the year-ago quarter’s levels.
Financial Position
Haemonetics exited the fiscal 2024 with cash and cash equivalents of $178.8 million compared with $284.5 million at the end of fiscal 2023. The long-term debt at the end of the fiscal 2024 was $797.6 million, up from $754.1 million at the end of the fiscal 2023.
Haemonetics Corporation Price, Consensus and EPS Surprise
The cumulative net cash flow from operating activities at the end of fiscal 2024 was $181.8 million compared with $273.1 million cash inflow from operating activities a year ago.
2025 Guidance
Haemonetics provided its outlook for fiscal 2025.
For 2025, the company expects total GAAP revenue growth in the range of 5-8% on a reported basis. Organic revenue growth, too, is anticipated in the range of 0-3%. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.35 billion.
HAE expects full-year 2025 adjusted EPS in the band of $4.45-$4.75. The Zacks Consensus Estimate for the same is pegged at $4.24.
Our Take
Haemonetics ended the fourth quarter of fiscal 2024 with better-than-expected earnings and revenues. Increasing disposable revenue across plasma collection centers in Egypt, continued strength in red cell collections in the United States and strong demand for platelets across key markets drove Blood Center revenues in the reported quarter. Within the Hospital arm, the registered growth is driven by Vascular Closure and Hemostasis Management. Expansion of both margins looks encouraging.
However, Whole blood revenues declined 7% in the reported quarter, predominantly due to lower volumes. Stiff competition is a concern.
Zacks Rank & Key Picks
Haemonetics carries a Zacks Rank #3 (Hold) currently.
Some better-ranked stocks from the broader medical space are Medpace (MEDP - Free Report) , ResMed (RMD - Free Report) and Encompass Health Corporation (EHC - Free Report) .
Medpace, sporting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2024 EPS of $3.20, which beat the Zacks Consensus Estimate by 30.6%. Revenues of $511 million increased 17.7% from last year’s comparable figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace has an estimated 2024 earnings growth rate of 26.5% compared with the industry’s 12.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 12.8%.
ResMed, sporting a Zacks Rank #1, reported a first-quarter 2024 EPS of $2.13, which topped the Zacks Consensus Estimate by 10.9%. Revenues of $1.20 billion surpassed the Zacks Consensus Estimate by 1.9%.
RMD has an estimated fiscal 2024 earnings growth rate of 17.9% compared to the industry’s 15.7%. In each of the trailing four quarters, the company delivered an average earnings surprise of 2.8%.
Encompass Health, carrying a Zacks Rank #2 (Buy), reported a first-quarter 2024 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 20.4%. Net operating revenues of $1.3 billion topped the Zacks Consensus Estimate by 3.6%.
EHC has an estimated long-term earnings growth rate of 15.6% compared with the industry’s 11.7% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.7%.
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Haemonetics (HAE) Q4 Earnings Top Estimates, Margins Expand
Haemonetics Corporation (HAE - Free Report) delivered adjusted earnings per share (EPS) of 90 cents for the fourth quarter of fiscal 2024, up 16.9% year over year. The bottom line surpassed the Zacks Consensus Estimate by 2.3%.
On a GAAP basis, EPS was 40 cents, down 29.8% from the prior-year quarter’s levels.
For the full year, adjusted earnings were $3.96 per share, up 30.7% from the year-ago period’s figure. It beats the Zacks Consensus Estimate by 03%.
Total Revenues
Revenues increased 12.8% to $343.3 million in the fourth quarter of fiscal 2024. The top line exceeded the Zacks Consensus Estimate by 5%. The uptick was driven by growth across the Plasma and Hospital segments.
Total revenues in 2024 were $1.31 billion, up 12% from the year-ago period’s tally. The figure beat the Zacks Consensus Estimate by 1.6%.
Segments in Detail
At Plasma, revenues of $138.6 million rose 5.7% year over year (up 5.6% on an organic basis) in the reported quarter. The upside was primarily driven by disposable volume and software. This compares with our model projection of $135 million for the quarter reported.
Blood Center registered revenues of $70.2 million, up 4.5% (up 7.1% on an organic basis). The uptick was driven by increasing disposable revenues across plasma collection centers in Egypt, continued strength in red cell collections in the United States and strong demand for platelets across key markets. Our model projection for the same was $66.3 million for the fiscal fourth quarter.
In the Hospital segment, revenues rose 28.1% (up 18.7% on an organic basis) to $129.2 million, primarily driven by growth in Vascular Closure and Hemostasis Management. This compares with our model projection of $117.9 million for the said quarter.
Service revenues of $5.2 million rose 1.2% (up 1% on an organic basis). This compares favorably with our model projection of $5.2 million for the fiscal fourth quarter.
Margins
In fourth-quarter fiscal 2024, the company-adjusted gross margin was 54%, up 220 basis points (bps) year over year. The primary drivers of the increase in the gross margin percentage were price, volume and a favorable mix, partially offset by the impact of foreign exchange.
Company-adjusted operating expenses, as a percentage of revenues, were 35.2% in fourth-quarter fiscal 2024 compared with 34.0% in the prior-year period. The increase in adjusted operating expenses, as a percentage of revenues, was primarily driven by continuous growth investments, the recent acquisition of OpSens Inc. and freight, partially offset by operating leverage.
The company-adjusted operating income was $64.6 million in the quarter under discussion, up 19.8% year over year. The adjusted operating margin was 18.8%, up 110 bps from the year-ago quarter’s levels.
Financial Position
Haemonetics exited the fiscal 2024 with cash and cash equivalents of $178.8 million compared with $284.5 million at the end of fiscal 2023. The long-term debt at the end of the fiscal 2024 was $797.6 million, up from $754.1 million at the end of the fiscal 2023.
Haemonetics Corporation Price, Consensus and EPS Surprise
Haemonetics Corporation price-consensus-eps-surprise-chart | Haemonetics Corporation Quote
The cumulative net cash flow from operating activities at the end of fiscal 2024 was $181.8 million compared with $273.1 million cash inflow from operating activities a year ago.
2025 Guidance
Haemonetics provided its outlook for fiscal 2025.
For 2025, the company expects total GAAP revenue growth in the range of 5-8% on a reported basis. Organic revenue growth, too, is anticipated in the range of 0-3%. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.35 billion.
HAE expects full-year 2025 adjusted EPS in the band of $4.45-$4.75. The Zacks Consensus Estimate for the same is pegged at $4.24.
Our Take
Haemonetics ended the fourth quarter of fiscal 2024 with better-than-expected earnings and revenues. Increasing disposable revenue across plasma collection centers in Egypt, continued strength in red cell collections in the United States and strong demand for platelets across key markets drove Blood Center revenues in the reported quarter. Within the Hospital arm, the registered growth is driven by Vascular Closure and Hemostasis Management. Expansion of both margins looks encouraging.
However, Whole blood revenues declined 7% in the reported quarter, predominantly due to lower volumes. Stiff competition is a concern.
Zacks Rank & Key Picks
Haemonetics carries a Zacks Rank #3 (Hold) currently.
Some better-ranked stocks from the broader medical space are Medpace (MEDP - Free Report) , ResMed (RMD - Free Report) and Encompass Health Corporation (EHC - Free Report) .
Medpace, sporting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2024 EPS of $3.20, which beat the Zacks Consensus Estimate by 30.6%. Revenues of $511 million increased 17.7% from last year’s comparable figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace has an estimated 2024 earnings growth rate of 26.5% compared with the industry’s 12.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 12.8%.
ResMed, sporting a Zacks Rank #1, reported a first-quarter 2024 EPS of $2.13, which topped the Zacks Consensus Estimate by 10.9%. Revenues of $1.20 billion surpassed the Zacks Consensus Estimate by 1.9%.
RMD has an estimated fiscal 2024 earnings growth rate of 17.9% compared to the industry’s 15.7%. In each of the trailing four quarters, the company delivered an average earnings surprise of 2.8%.
Encompass Health, carrying a Zacks Rank #2 (Buy), reported a first-quarter 2024 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 20.4%. Net operating revenues of $1.3 billion topped the Zacks Consensus Estimate by 3.6%.
EHC has an estimated long-term earnings growth rate of 15.6% compared with the industry’s 11.7% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.7%.