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Haemonetics Corporation (HAE - Free Report) reported adjusted earnings per share (EPS) of 39 cents in the fourth quarter of fiscal 2017, up 5.4% year over year. The figure also beat the Zacks Consensus Estimate by the same margin.
On a reported basis, Haemonetics posted net loss of $51.1 million or 98 cents per share, compared with the year-ago quarter’s net loss of $8.7 million or a loss of 17 cents.
Full-year 2017 adjusted EPS came in at $1.53, down 6% from the prior fiscal. The figure has however surpassed the Zacks Consensus Estimate of $1.50.
Haemonetics Corporation Price, Consensus and EPS Surprise
Revenues declined 6% year over year (down 5% at constant exchange rate or CER) to $228.1 million in the reported quarter but managed to beat the Zacks Consensus Estimate of $221 million.
Strong performance by Haemonetics’ Plasma and Hemostasis and Transfusion Management franchises continued in the fourth quarter, offset by weakness in Blood Center and Cell Salvage.
Geographically, in the reported quarter, Haemonetics witnessed a 7.6% year-over-year (same at CER) fall in revenues in North America to $129.3 million and international revenues declined 3.5% (down 5.1% at CER) to $98.6 million.
Full-year 2017 revenues were $886.1 million, down 2.5% from the prior fiscal (down 1% at CER), but above the Zacks Consensus Estimate of $876.8 million.
Revenues by Product Categories
Haemonetics reports operating results under four business franchises: Plasma, Haemostasis Management, Cell Processing and Blood Center.
At Plasma, Haemonetics reported revenues of $100.8 million (44.1% of total revenues), up 1.2% year over year (up 1.8% at CER).
Revenues at BloodCenter (36.1% of total revenue) declined 15.5% (down 14.9% at CER) to $82.3 million.
Hemostasis Management franchise revenues (7.6% of total revenue) rose 5.7% (up 7.5% at CER) to $17.4 million. Revenues from Cell Processing dropped 4.8% (down 3% at CER) to $27.4 million (12% of total revenue) owing to a persistent decline in Cell Saver and OrthoPAT disposables volumes, which was partly offset by Blood Track software growth.
Margins
Haemonetics’ fourth-quarter gross margin was 36%, down 80 basis points (bps) year over year.
Operating loss was $57.5 million in the fourth quarter, compared with operating loss of $5.5 million in the year-ago quarter.
Financial Position
Haemonetics exited fiscal 2017 with cash and cash equivalents of $139.5 million, compared with $129.6 millionat the end of the third quarter 2017.
Haemonetics generated operating cash flow of $159.7 million at the end of fiscal 2017, compared with $121.8 million in fiscal 2016. At the end of fiscal 2017, the company reported free cash flow (before transformation, restructuring costs and VCC capital expenditures) of $113.0 million, compared with $58.0 million in the prior year. Capital expenditures of $76.1 million has been recorded in the year, narrower than $102.4 million in the year 2016.
Fiscal 2018 Guidance
Haemonetics issued its fiscal 2018 financial guidance. The company expects full-year revenues to be in line with fiscal 2017 revenues. The guidance for Plasma revenue growth is in the range of 3% to 5%, inclusive of the SEBRA divestiture which represented 1.4% of annual Plasma revenues. The Zacks Consensus Estimate for 2018 sales is pegged at $901.2 million.
The company also expects 2018 adjusted EPS in the band of $1.55–$1.65. The Zacks Consensus Estimate of $1.57 is within the guided range.
Management continues to expect strong cash generating activity in fiscal 2018 with $140 million of cash on hand to fund business activities.
Our Take
Haemonetics exited fiscal 2017 on an impressive note, with earnings and revenues beating the Zacks Consensus Estimate. The company’s strong cash position also boosts investors’ confidence. However, despite the encouraging growth in the Plasma and Haemonetics Management franchises, the underperformance at the other two franchises was quite a dampener. The year-over-year decline in reported sales also added to the concerns.
Nonetheless, management expects its Plasma franchise to return to market growth. The divestiture of SEBRA bench-top and handheld sealers from the Plasma business is expected to drive top-line growth in 2018. The company also emphasizes that the Hospital franchise has the potential to become a meaningful revenue driver and Blood Center will be a viable standalone business and a reliable generator of operating income and cash going ahead.
Zacks Rank & Key Picks
Haemoneticscurrently has a Zacks Rank #3 (Hold). Better-ranked medical stocks include Hologic, Inc. (HOLX - Free Report) , Baxter International Inc. (BAX - Free Report) and Progenics Pharmaceuticals, Inc. . Hologic sports a Zacks Rank 1 (Strong Buy), while Baxter International and Progenics Pharmaceuticals carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic gained 31.6% in the last one year, in comparison to the S&P 500’s 15.0%. The company has a stellar four-quarter average earnings surprise of over 4.16%.
Baxter International rose around 22.4% in the last one year, in comparison to the S&P 500. It has a four-quarter average earnings surprise of 17.14%.
Progenics Pharmaceuticals gained 38.8% in the past one year, better than the S&P 500 mark. It has a four-quarter average earnings surprise of 10.01%.
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Haemonetics (HAE) Tops Q4 Earnings, Sales, Issues 2018 View
Haemonetics Corporation (HAE - Free Report) reported adjusted earnings per share (EPS) of 39 cents in the fourth quarter of fiscal 2017, up 5.4% year over year. The figure also beat the Zacks Consensus Estimate by the same margin.
On a reported basis, Haemonetics posted net loss of $51.1 million or 98 cents per share, compared with the year-ago quarter’s net loss of $8.7 million or a loss of 17 cents.
Full-year 2017 adjusted EPS came in at $1.53, down 6% from the prior fiscal. The figure has however surpassed the Zacks Consensus Estimate of $1.50.
Haemonetics Corporation Price, Consensus and EPS Surprise
Haemonetics Corporation Price, Consensus and EPS Surprise | Haemonetics Corporation Quote
Total Revenue
Revenues declined 6% year over year (down 5% at constant exchange rate or CER) to $228.1 million in the reported quarter but managed to beat the Zacks Consensus Estimate of $221 million.
Strong performance by Haemonetics’ Plasma and Hemostasis and Transfusion Management franchises continued in the fourth quarter, offset by weakness in Blood Center and Cell Salvage.
Geographically, in the reported quarter, Haemonetics witnessed a 7.6% year-over-year (same at CER) fall in revenues in North America to $129.3 million and international revenues declined 3.5% (down 5.1% at CER) to $98.6 million.
Full-year 2017 revenues were $886.1 million, down 2.5% from the prior fiscal (down 1% at CER), but above the Zacks Consensus Estimate of $876.8 million.
Revenues by Product Categories
Haemonetics reports operating results under four business franchises: Plasma, Haemostasis Management, Cell Processing and Blood Center.
At Plasma, Haemonetics reported revenues of $100.8 million (44.1% of total revenues), up 1.2% year over year (up 1.8% at CER).
Revenues at BloodCenter (36.1% of total revenue) declined 15.5% (down 14.9% at CER) to $82.3 million.
Hemostasis Management franchise revenues (7.6% of total revenue) rose 5.7% (up 7.5% at CER) to $17.4 million. Revenues from Cell Processing dropped 4.8% (down 3% at CER) to $27.4 million (12% of total revenue) owing to a persistent decline in Cell Saver and OrthoPAT disposables volumes, which was partly offset by Blood Track software growth.
Margins
Haemonetics’ fourth-quarter gross margin was 36%, down 80 basis points (bps) year over year.
Operating loss was $57.5 million in the fourth quarter, compared with operating loss of $5.5 million in the year-ago quarter.
Financial Position
Haemonetics exited fiscal 2017 with cash and cash equivalents of $139.5 million, compared with $129.6 millionat the end of the third quarter 2017.
Haemonetics generated operating cash flow of $159.7 million at the end of fiscal 2017, compared with $121.8 million in fiscal 2016. At the end of fiscal 2017, the company reported free cash flow (before transformation, restructuring costs and VCC capital expenditures) of $113.0 million, compared with $58.0 million in the prior year. Capital expenditures of $76.1 million has been recorded in the year, narrower than $102.4 million in the year 2016.
Fiscal 2018 Guidance
Haemonetics issued its fiscal 2018 financial guidance. The company expects full-year revenues to be in line with fiscal 2017 revenues. The guidance for Plasma revenue growth is in the range of 3% to 5%, inclusive of the SEBRA divestiture which represented 1.4% of annual Plasma revenues. The Zacks Consensus Estimate for 2018 sales is pegged at $901.2 million.
The company also expects 2018 adjusted EPS in the band of $1.55–$1.65. The Zacks Consensus Estimate of $1.57 is within the guided range.
Management continues to expect strong cash generating activity in fiscal 2018 with $140 million of cash on hand to fund business activities.
Our Take
Haemonetics exited fiscal 2017 on an impressive note, with earnings and revenues beating the Zacks Consensus Estimate. The company’s strong cash position also boosts investors’ confidence. However, despite the encouraging growth in the Plasma and Haemonetics Management franchises, the underperformance at the other two franchises was quite a dampener. The year-over-year decline in reported sales also added to the concerns.
Nonetheless, management expects its Plasma franchise to return to market growth. The divestiture of SEBRA bench-top and handheld sealers from the Plasma business is expected to drive top-line growth in 2018. The company also emphasizes that the Hospital franchise has the potential to become a meaningful revenue driver and Blood Center will be a viable standalone business and a reliable generator of operating income and cash going ahead.
Zacks Rank & Key Picks
Haemoneticscurrently has a Zacks Rank #3 (Hold). Better-ranked medical stocks include Hologic, Inc. (HOLX - Free Report) , Baxter International Inc. (BAX - Free Report) and Progenics Pharmaceuticals, Inc. . Hologic sports a Zacks Rank 1 (Strong Buy), while Baxter International and Progenics Pharmaceuticals carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic gained 31.6% in the last one year, in comparison to the S&P 500’s 15.0%. The company has a stellar four-quarter average earnings surprise of over 4.16%.
Baxter International rose around 22.4% in the last one year, in comparison to the S&P 500. It has a four-quarter average earnings surprise of 17.14%.
Progenics Pharmaceuticals gained 38.8% in the past one year, better than the S&P 500 mark. It has a four-quarter average earnings surprise of 10.01%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>