On Sep 1, we issued an updated research report on Haemonetics Corporation HAE, a Braintree, MA-based leading provider of blood management solutions to customers encompassing blood and plasma collectors, plus hospitals and health care providers globally. The stock currently carries a Zacks Rank #3 (Hold).
Haemonetics has been trading above the broader industry since last month. The stock has till now gained 1.6% as against the broader industry’s 1.6% fall. The year-over-year increase in reported sales and gross margin buoys optimism.
Haemonetics Corporation Price and Consensus
Haemonetics Corporation Price and Consensus | Haemonetics Corporation Quote
Market is upbeat about Haemonetics’ encouraging growth in both Plasma and Haemonetics Management franchises. The company swung to operating income in first-quarter fiscal 2018 from losses in the year-ago quarter.
Haemonetics has been witnessing a strong flourish in Plasma franchise for quite some time now. Management has also maintained high confidence in the continued growth of its commercial plasma collection business. In the quarter, North America Plasma disposables revenues increased 6%. Growth continued to be led by a strong end-market demand for plasma-derived biopharmaceuticals.
The company’s Hospital business is also progressing well with the TEG line of products gaining popularity worldwide. The TEG 5000 is sanctioned for a broad set of indications in all top markets. The TEG 6s and TEG Manager’s approval are for the same set of indications across Europe, Australia and Japan.
On the flip side, the company has been witnessing sluggish revenue growth at the Blood Center franchise, significantly affecting its results over the past few quarters. Management also doesn’t expect any early recovery in the Blood Center’s outcomes.
Macroeconomic uncertainty continues to pose a challenge for Haemonetics. Management also anticipates slower-than-expected product adoption by customers which might reduce revenues and profits. Also, currency fluctuations and a stiff competition continue to hamper the stock.
Other Key Picks
A few better-ranked medical stocks are Edwards Lifesciences Corporation EW, Lantheus Holdings, Inc. LNTH and IDEXX Laboratories, Inc. IDXX. Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while Lantheus Holdings and IDEXX Laboratories carry a Zacks Rank #2 (Buy). You cansee the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has rallied roughly 19.8% over the last six months.
Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has surged 21.6% over the last six months.
IDEXX Laboratories has a long-term expected earnings growth rate of 19.8%. The stock has gained around 2.9% over the last six months.
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