Yahoo Finance Haemonetics (HAE) Hospital Arm Grows, Plasma Volume Improves
Haemonetics HAE continues to register strong top-line growth, banking on Plasma, Thromboelastography (TEG), Hemostasis Management as well as the newly-added Vascular Closure business. The stock carries a Zacks Rank #1 (Strong Buy).
Over the past year, Haemonetics has outperformed its industry. The company has gained 31.5% against the industry’s 32.8% decline.
Haemonetics ended the fourth quarter of fiscal 2023 with better-than-expected earnings and revenues. The robust volume growth and price benefits in the Plasma business drove the quarter’s top line.
Revenues from HAE’s hospital business came in at $100 million for the first time, which is quite encouraging. The Vascular Closure business favorably contributed toward operating margins.
For fiscal 2023, Haemonetics generated $26 million in gross savings from its operational excellence program, with cumulative gross savings slightly ahead of the plan. The company continues to prioritize investments in high-impact and high-value projects, with plans to amplify the domestic production of NexSys PCS devices to support plasma customer growth requirements.
Haemonetics Corporation Price
Haemonetics Corporation price | Haemonetics Corporation Quote
In the fiscal fourth quarter, Hospital business revenues grew 19%, primarily driven by growth in Vascular Closure and Hemostasis Management. The company’s revenues and market share rose significantly.
Under the Hospital segment, revenue growth in the Hemostasis Management and Vascular Closure product lines was 22% and 31% on a year-over-year basis, respectively. Within Vascular Closure, growth in the fourth quarter was led by the opening of new accounts and an increase in penetration to gain share in the top U.S. EP hospitals. Plasma revenues increased 29.8% in the fourth quarter, driven by strong growth in collection volume and price as a result of technology upgrades.
However, a lackluster revenue guidance in Haemonetics’ Blood Center business is discouraging. Revenues in this business are backend loaded with an unfavorable order timing impact in the first half of the year compared with fiscal 2022.
Weak solvency and stiff competition are concerns. The company continues to be challenged by inflationary pressure in the global manufacturing and supply chain, including freight and raw material costs, previous divestitures and price adjustments.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Addus Homecare Corporation ADUS, Merit Medical Systems, Inc. MMSI and Hologic, Inc. HOLX.
The Zacks Consensus Estimate for Addus Homecare’s 2023 earnings indicates 10.9% year-over-year growth. The Zacks Consensus Estimate for ADUS’ 2023 earnings has moved 0.5% north in the past 30 days.
Addus Homecare has a long-term estimated growth rate of 11.8%. The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Merit Medical reported first-quarter 2023 adjusted EPS of 64 cents, beating the Zacks Consensus Estimate by 16.4%. Revenues of $297.6 million surpassed the Zacks Consensus Estimate by 5.9%. It currently carries a Zacks Rank #2.
Merit Medical has a long-term estimated growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 20.2%.
Hologic, carrying a Zacks Rank #2 at present, has an estimated growth rate of 5.1% for fiscal 2024. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average being 27.3%.
Hologic has gained 5% against the industry’s 2.2% decline in the past year.
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