Haemonetics slumps on lower revenue forecast
Haemonetics skids as 1Q revenue misses estimates and company cuts full-year guidance
NEW YORK (AP) -- Shares of Haemonetics Corp. declined Monday after the company reported disappointing revenue for the fiscal first quarter and lowered its expectations for the year.
Haemonetics provides blood management systems for health care providers and blood collectors. The company's sales improved because of an acquisition, but it expects weaker sales of products for blood collection centers and hospitals. Haemonetics took a loss in the first quarter on restructuring costs and charges related to its purchase of Pall Corp.'s blood transfusion business. Its adjusted results were about in line with Wall Street's estimates.
Haemonetics stock lost $3.91, or 8.6 percent, to $41.52 in midday trading. The shares reached an all-time high of $45.90 on Thursday.
The company said it lost $7.9 million, or 15 cents per share, over the three months ended June 29. A year ago it reported a profit of $9.8 million, or 19 cents per share. Excluding one-time gains and costs, Haemonetics said it earned 46 cents per share in the latest quarter. Its revenue grew 24 percent, to $219.5 million from $176.5 million.
Analysts projected net income of 47 cents per share and $233 million in revenue, according to FactSet.
The Braintree, Mass., company said revenue from its plasma business revenue rose 2 percent to $65.3 million. Revenue from products for blood centers nearly doubled to $95.7 million following the Pall deal. Hospital disposables revenue fell 7 percent to $30 million, and software and equipment revenue also declined.
Haemonetics said the integration of the Pall blood transfusion business should be complete during its fiscal second quarter.
For the full fiscal year Haemonetics still expects to earn between $2.30 and $2.40 per share. It now says revenue will grow 7 to 10 percent, implying a total of $954.4 million to $981.2 million. The company previously called for growth of 9 to 12 percent.
