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As you might know, Haemonetics Corporation (NYSE:HAE) just kicked off its latest quarterly results with some very strong numbers. The company beat both earnings and revenue forecasts, with revenue of US$240m, some 7.2% above estimates, and statutory earnings per share (EPS) coming in at US$0.62, 58% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the seven analysts covering Haemonetics are now predicting revenues of US$995.8m in 2022. If met, this would reflect a decent 13% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 32% to US$2.83. In the lead-up to this report, the analysts had been modelling revenues of US$979.4m and earnings per share (EPS) of US$2.65 in 2022. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target rose 7.5% to US$154, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Haemonetics, with the most bullish analyst valuing it at US$185 and the most bearish at US$140 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Haemonetics' growth to accelerate, with the forecast 13% growth ranking favourably alongside historical growth of 1.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Haemonetics is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Haemonetics following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Haemonetics. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Haemonetics going out to 2024, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for Haemonetics that you should be aware of.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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