Back to top

Image: Shutterstock

Haemonetics (HAE) Banks on Growing Plasma Arm, Innovation

Read MoreHide Full Article

Haemonetics (HAE - Free Report) has been gaining from business growth within Plasma, Hospital and Hemostasis Management. Its new launches also aid growth. The stock carries a Zacks Rank #1 (Strong Buy) currently.

Haemonetics’ Plasma revenues grew 6% in the fourth quarter of fiscal 2024, driven primarily by disposable volume and software. The collections environment in the United States continued to be favorable, with disposables growing 4% in the quarter and 13% in fiscal 2024.

The company is gaining from the newly-completed limited market release of the new Express Plus technology with more than 60,000 real-world collections. Haemonetics is currently initiating the full-market release of the new Express Plus technology in the United States. This technology is fast gaining new customers.

The rollout of Persona — the company’s proprietary technology proven to increase yield from 9% to 12% on average — continues to gain momentum, with more than 25 million collections.

Advancements in NexLynk DMS (Donor Management System), its bidirectional connectivity software, are improving cycle times, reducing errors and allowing staff to focus on taking care of donors and reducing door-to-door time, a key determinant of donor satisfaction. The combination of Persona, Express Plus and NexLynk sets a new industry standard for center throughput, cost per liter and donor satisfaction. According to Haemonetics, NexSys with Persona remains unrivaled in enabling collectors to safely meet end-market demand and lower cost per liter. The company is currently putting efforts to enhance the NexSys platform, expanding its competitive advantage as the global industry standard for plasma collection.

Excluding the effects of the Consolidated Screening List’s (CSL) U.S. Transitional supply agreement, the company's core plasma business is projected to deliver additional growth of 8% to 12% in fiscal 2025.

Within Haemonetics’ NexSys PCS, the rollout of Persona, its proprietary technology proven to increase yield by 9% to 12% on average, continues to gain momentum with more than 25 million collections. In addition, during the fiscal fourth quarter update, management noted that the continued transition from the company’s PCS2 devices to the latest NexSys with Persona Technology will drive meaningful improvements in 2025.

Haemonetics’ hospital portfolio is evolving and helping to create new opportunities for growth and diversification. Each of the four product lines has a leading market position and a mission of helping hospitals and clinicians provide the highest standard of patient care while at the same time reducing operating and procedural costs and helping decision-makers in hospitals optimize blood acquisition, storage and usage in critical settings. The company is taking impactful steps to support growth in the Hospital business, which contributes to broadening its global presence and retaining industry leadership.

In terms of performance in the fiscal fourth quarter, hospital revenues increased 19%, driven by the continued success of Vascular Closure and hemostasis management. The Vascular Closure business continued to gain, driven by new account openings, both in electrophysiology and interventional cardiology.

On the flip side, continued uncertainty around inflationary pressures, rising interest rates and macroeconomic conditions have increased the risk of creating new or exacerbating existing economic challenges that Haemoentics faces. While Haemonetics implemented cost containment measures, selective price increases and other actions to offset these inflationary pressures in its global supply chain, the company may not be able to offset all the increases in its operational costs completely. Climate change (including laws or regulations passed in response thereto) could increase supply costs, including energy and transportation/freight-related expenses, or reduce the availability of raw materials. In the fiscal fourth quarter, Haemonetics faced 700 basis points of margin pressure, stemming primarily from inflationary headwinds and supply chain disruptions, among other challenges.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Hims & Hers Health (HIMS - Free Report) , Medpace (MEDP - Free Report) and ResMed (RMD - Free Report) . While Hims & Hers Health and Medpace sport a Zacks Rank #1 each, ResMed carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

Hims & Hers Heath stock has surged 143.8% in the past year. Estimates for the company’s earnings have remained constant at 18 cents for 2024 and increased 3.1% to 33 cents for 2025 in the past 30 days.

HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it posted an earnings surprise of a staggering 150%.

Estimates for Medpace’s 2024 earnings per share have moved up to $11.29 from $11.23 in the past 30 days. Shares of the company have surged 81.4% in the past year compared with the industry’s 4.2% growth.

MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.8%. In the last reported quarter, it delivered an earnings surprise of 30.6%.

Estimates for ResMed’s fiscal 2024 earnings per share have remained constant at $7.70 in the past 30 days. Shares of the company have declined 2.1% in the past year against the industry’s rise of 3.9%.

RMD’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.8%. In the last reported quarter, it delivered an earnings surprise of 10.9%.

Published in