U.S. Markets close in 35 mins
  • S&P 500

    3,580.92
    +23.38 (+0.66%)
     
  • Dow 30

    29,614.13
    +350.65 (+1.20%)
     
  • Nasdaq

    11,896.45
    +41.48 (+0.35%)
     
  • Russell 2000

    1,785.34
    +1.21 (+0.07%)
     
  • Crude Oil

    42.17
    +0.43 (+1.03%)
     
  • Gold

    1,869.60
    +8.10 (+0.44%)
     
  • Silver

    24.23
    +0.18 (+0.74%)
     
  • EUR/USD

    1.1862
    -0.0014 (-0.1186%)
     
  • 10-Yr Bond

    0.8570
    +0.0280 (+3.38%)
     
  • Vix

    23.70
    +0.59 (+2.55%)
     
  • GBP/USD

    1.3291
    +0.0038 (+0.2858%)
     
  • USD/JPY

    103.8280
    +0.0570 (+0.0549%)
     
  • BTC-USD

    18,392.80
    -61.95 (-0.34%)
     
  • CMC Crypto 200

    363.77
    +2.34 (+0.65%)
     
  • FTSE 100

    6,351.45
    +17.10 (+0.27%)
     
  • Nikkei 225

    25,527.37
    -106.93 (-0.42%)
     

Haemonetics (HAE) Beats on Q1 Earnings, Raises '19 EPS View

Zacks Equity Research

Haemonetics Corporation HAE delivered adjusted earnings per share (EPS) of 81 cents in the first quarter of fiscal 2020, reflecting a 37.3% year-over-year surge from 59 cents. The bottom line also surpassed the Zacks Consensus Estimate by 28.6%.

On a reported basis, net loss came in at 17 cents per share, wider than the year-ago loss of 5 cents.

Total Revenues

Revenues rose 4% (up 8% on an organic basis) to $238.5 million from the first quarter of fiscal 2019. The top line remained marginally in line with the Zacks Consensus Estimate.

Haemonetics Corporation Price, Consensus and EPS Surprise

 

Haemonetics Corporation Price, Consensus and EPS Surprise
Haemonetics Corporation Price, Consensus and EPS Surprise

Haemonetics Corporation price-consensus-eps-surprise-chart | Haemonetics Corporation Quote

Revenues by Product Categories

At Plasma, revenues of $110.4 million (accounting for 46.3% of total revenues) increased 11.1% year over year (up 16.1% on an organic basis) in the reported quarter. Plasma revenue growth in North America was 17.4% including 13.9% growth in disposables.

Revenues at BloodCenter (31.8%) declined 3.8% (2.3% on an organic basis) to $75.8 million.

Hospital revenues (20%) were up 1.5% (8.3% on an organic basis) to $47.7 million. Under the Hospital section, organic revenue growth in the Hemostasis Management product line was 15.7% in the first quarter of fiscal 2020.

Margins

Adjusted gross margin was 51.2%, up 400 basis points (bps) year over year due to change in pricing structure, product mix and productivity.

Adjusted operating income was $51.4 million in the quarter under discussion, up 26.3% from $40.7 million in the year-ago quarter. Meanwhile, adjusted operating margin expanded 360 bps year over year to 21.4%.

The company continued to rollout the NexSys PCS device and NexLynk DMS donor management software.

Financial Position

Haemonetics exited the first quarter of fiscal 2020 with cash and cash equivalents of $190.2 million compared with $169.4 million at the end of fiscal 2019. Long-term debt at the end of the first quarter was $318.1 million, showing a reduction of 1.3% from $322.5 million at the end of fiscal 2019.

The company generated operating cash flow of $2.6 million in the first quarter, compared with $23.1 million a year ago (down 88.7%). The company also reported free cash flow (before restructuring and turnaround costs) of $5.3 million during the period which was down 12.2% from $6 million a year-ago.

Fiscal 2020 Guidance

Haemonetics has updated its fiscal 2020 financial guidance. The company reiterated full-year organic revenue growth at the band of 6-8%. Coming to segmental revenues, on an organic basis, Plasma revenue view has been raised to a new range of 13-15% (from the earlier 11-13%). Hospital revenue growth projection is maintained at the band of 11-13%. Blood Center revenues are likely to decline 4-6% from the year-earlier number (earlier band was a decline of 6-8%). The Zacks Consensus Estimate for fiscal 2020 revenues is pegged at $1.01 billion.

The company forecasts 2020 adjusted EPS in the range of $2.95-$3.15 (up from the previously issued guidance of $2.80-$3). The consensus estimate of $2.93 is below the guided range.

Our Take

Haemonetics exited the first quarter of 2020 on a solid note. Per the company, benefits from complexity reduction and investments along with higher market demand and success from early launches helped the company pull off an impressive performance. Continued momentum in new business generation and geographical expansion contributed to the results. However, the company’s sluggish Blood Center business and moderating overall top-line growth raise concern.

Zacks Rank and Other Key Picks

Haemonetics currently sports a Zacks Rank #1 (Strong Buy).

A few other top-ranked companies which have come up with solid results this earnings season are Surmodics SRDX, NuVasive NUVA and LeMaitre Vascular LMAT.

Surmodics delivered third-quarter fiscal 2019 adjusted EPS of 15 cents per share, which surpassed the Zacks Consensus Estimate of 5 cents by a whopping 200%. Revenues of $24.3 million beat the consensus estimate by 6.6%.The company carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

NuVasive delivered second-quarter 2019 adjusted EPS of 63 cents, which surpassed the Zacks Consensus Estimate of 56 cents by 12.5%. Revenues of $292.1 million, beat the Zacks Consensus Estimate of $292 billion by a narrow margin.The company holds a Zacks Rank #2 (Buy).

LeMaitre Vascular reported second-quarter 2019 adjusted EPS of 23 cents, which beat the Zacks Consensus Estimate by 9.5%. Moreover, revenues were $29.5 million, surpassing the Zacks Consensus Estimate of $29 billion by a nominal margin. The company is Zacks #1 Ranked.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Surmodics, Inc. (SRDX) : Free Stock Analysis Report
 
NuVasive, Inc. (NUVA) : Free Stock Analysis Report
 
LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report
 
Haemonetics Corporation (HAE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research