On Sep 19, 2014, we issued an updated research report on Haemonetics Corporation (HAE) – a global provider of blood management solutions. Haemonetics reported an impressive first quarter of fiscal 2015 with both earnings and revenues outpacing the respective Zacks Consensus Estimate.
Adjusted EPS of 38 cents, although down 17.4% year over year, surpassed the Zacks Consensus Estimate by 3 cents. Revenues increased 2.3% to $224.5 million, steering ahead of the Zacks Consensus Estimate of $216 million.
The company’s plasma disposables continue to be a profitable business, with particular strength in North America. Haemonetics’ hospital diagnostics business also happens to be a booming one, with 1,800 TEG (Thromboelastography) devices installed in the past three fiscal years. Management firmly expects strong growth to continue in this business segment despite current and anticipated headwinds in surgical ongoing OrthoPAT market trends, buoyed by strong growth observed in TEG.
Despite the sluggish performance of the company’s Blood Center disposable business and the American Red Cross whole blood tender loss which will continue to adversely affect this business segment through the remaining quarters of fiscal 2015, Haemonetics still considers fiscal 2015 a transition year for the company.
The company expects profitable growth in plasma, TEG and emerging market in this period, although it will likely be offset by three major factors: unfavorable currency trend, the weak performance of the U.S blood collection market and finally, fiscal 2014 bonus funding program that is expected to escalate the operating costs. However, we believe, Haemonetics has every potential to overcome its existing difficulties and achieve improved financials in the next fiscal.
Other Stocks to Consider
While Haemonetics carries a Zacks Rank #3 (Hold), better-ranked stocks worth considering in the medical products sector are ICU Medical, Inc. (ICUI), Abaxis, Inc. (ABAX) and Hospira Inc. (HSP). While ICUI sports a Zacks Rank #1 (Strong Buy), ABAX and HSP carry a Zacks Rank #2 (Buy).
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
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment