Recently, we reaffirmed our Neutral recommendation on Haemonetics Corporation (HAE) with a target price of $68.00.
Haemonetics reported an adjusted EPS of 85 cents in the fourth quarter of fiscal 2011, surpassing the Zacks Consensus Estimate of 83 cents and the year-ago quarter’s 75 cents. For fiscal 2011, the adjusted EPS came in at $3.27, beating the Zacks Consensus Estimate of $3.25 and the previous year’s $2.85.
The company reported revenues of $170 million in the quarter, up 1% compared with the year-ago period. However, revenues were lower than the Zacks Consensus Estimate of $181 million. After considering an extra week in fiscal 2010, revenues were up 8%. For fiscal 2011, revenues increased 5% to $677 million (up 7% excluding the impact of an extra week in fiscal 2010) but lower than the Zacks Consensus Estimate of $686 million.
Haemonetics remained focused on blood management solutions to provide better services to customers. The company’s web-based blood management portal, IMPACT Online, has witnessed greater acceptance among customers. During the reported quarter, the company added 32 IMPACT accounts, resulting in total of 197 accounts comfortably exceeding the goal of 175 for fiscal 2011. In the North American patient business, the company implemented IMPACT at 115 hospitals and disposable revenue from these accounts grew 25% in fiscal 2011 compared to an 8% decline in the rest of North American patient business. In fiscal 2012, the company will focus on larger hospitals and expects about 90% of incremental growth in North American patient sales in fiscal 2012 to come from IMAPCT accounts.
Emerging markets are a key focus area of future growth for Haemonetics and generated more than $100 million in sales in fiscal 2011. The growth is expected to continue and will be driven by platelet disposable business and hospital product lines. Within a span of 5 years, business from this region has almost doubled. With further penetration, revenue contribution from emerging markets will constitute a major portion.
Haemonetics records a majority of its revenues from plasma business, which has been witnessing several challenges over the past few quarters. However, the situation is gradually improving based on which the company expects a 3-5% growth in plasma business in fiscal 2012. The company also faces stiff competition from players such as Baxter (BAX), Abbott (ABT), among others.
ABBOTT LABS (ABT): Free Stock Analysis Report
BAXTER INTL (BAX): Free Stock Analysis Report
Be the first to comment