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Here's Why You Should Invest in Haemonetics (HAE) Right Now
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Haemonetics Corporation (HAE - Free Report) is thriving on robust volume growth in the Plasma business driven by strong momentum in U.S. collections and price. The company’s international expansion is on track. HAE recently received approval for VASCADE MVP Japan and initiated the clinical use of Vascular Closure products in key accounts in Germany and Italy.
In the past year, the company’s shares have outperformed its industry. The stock has gained 15.1% against the industry’s 4.5% fall. Also, the company outperformed the S&P 500’s 19.8% rise.
This renowned global provider of blood management solutions to customers, including blood and plasma collectors and hospitals, has a market cap of $4.60 billion. The company has an earnings growth rate of 10% for the next five years. With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for investors.
What Makes the Stock an Attractive Pick?
Potential Upsides of the Plasma Franchise: Haemonetics is witnessing strong growth in the Plasma franchise. In the global plasma market, Haemonetics holds 80% share approximately. Haemonetics is witnessing plasma market growth above historical rates, driven by an industry striving to double collections by 2025 and the rising demand for plasma-based medicines. The company continued to benefit from the NexSys device and NexLynk donor management software (DMS), backed by increased customer adoptions.
Regarding the latest developments, Plasma revenues rose 35% in the fiscal first quarter. North America disposables surged 41% disproportionately, driven by substantial U.S. collections and price momentum. The first-quarter Plasma revenue growth rate benefited from unfavorable order timing in the first quarter of fiscal 2023. This was the seventh consecutive quarter of volume growth exceeding historical seasonality in the United States. The company witnessed strong, high single-digit collections growth in Europe.
NexSys PCS system Continues to Thrive: Haemonetics’ NexSys PCS is developed to enable higher plasma yield collections, improve productivity in customers’ centers, enhance the overall donor experience and provide safe and reliable collections that will become life-changing medicines for patients. Regarding the latest developments, the NexSys Plasma collection system offers 9-12% additional plasma yield, impeccable safety, connectivity and a superior donor experience backed by real-world evidence from tens of millions of collections.
Image Source: Zacks Investment Research
HAE is bringing powerful innovation with FDA clearance of a redesigned bowl and the Express Plus software to shorten average collection time, optimize plasma center efficiency and reduce cost per liter.
Huge Potential of Hemostasis Management Franchise: Under the Hospital business, Hemostasis Management saw strong growth in the past few quarters. In terms of the latest development, Hemostasis Management grew 14% in the reported quarter. North America, the largest market, grew 23%, driven by increased utilization of TEG, benefits from pricing and strong capital sales. International growth was mixed, but all of the key markets in Europe delivered strong double-digit growth in the quarter.
Upbeat Guidance: For 2024, the company expects total GAAP revenue growth in the range of 4-7% on a reported basis. Organic revenue growth is anticipated to be 5-8%. The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $1.19 billion.
HAE expects the full-year adjusted earnings per share in the band of $3.45-$3.75. The Zacks Consensus Estimate for the same is pegged at $3.29.
Estimate Trend
In the past 90 days, the Zacks Consensus Estimate for Haemonetics’ 2024 earnings moved 7.3% north to $3.82.
The Zacks Consensus Estimate for 2024 revenues is pegged at $1.26 billion, suggesting an 8.1% rise from the year-ago reported number.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Align Technology (ALGN - Free Report) , HealthEquity, Inc. (HQY - Free Report) and McKesson Corporation (MCK - Free Report) .
ALGN’s earnings surpassed estimates in two of the trailing four quarters and missed twice, delivering an average negative surprise of 1.76%. The company’s shares have risen 29.2% year to date compared with the industry’s 11.9% growth.
HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 23.5%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 13.03%.
The company’s shares have rallied 22% year to date against the industry’s 11.1% decline.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 8.10%.
The stock has rallied 21.5% year to date compared with the industry’s 11.9% growth.
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Here's Why You Should Invest in Haemonetics (HAE) Right Now
Haemonetics Corporation (HAE - Free Report) is thriving on robust volume growth in the Plasma business driven by strong momentum in U.S. collections and price. The company’s international expansion is on track. HAE recently received approval for VASCADE MVP Japan and initiated the clinical use of Vascular Closure products in key accounts in Germany and Italy.
In the past year, the company’s shares have outperformed its industry. The stock has gained 15.1% against the industry’s 4.5% fall. Also, the company outperformed the S&P 500’s 19.8% rise.
This renowned global provider of blood management solutions to customers, including blood and plasma collectors and hospitals, has a market cap of $4.60 billion. The company has an earnings growth rate of 10% for the next five years.
With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for investors.
What Makes the Stock an Attractive Pick?
Potential Upsides of the Plasma Franchise: Haemonetics is witnessing strong growth in the Plasma franchise. In the global plasma market, Haemonetics holds 80% share approximately. Haemonetics is witnessing plasma market growth above historical rates, driven by an industry striving to double collections by 2025 and the rising demand for plasma-based medicines. The company continued to benefit from the NexSys device and NexLynk donor management software (DMS), backed by increased customer adoptions.
Regarding the latest developments, Plasma revenues rose 35% in the fiscal first quarter. North America disposables surged 41% disproportionately, driven by substantial U.S. collections and price momentum. The first-quarter Plasma revenue growth rate benefited from unfavorable order timing in the first quarter of fiscal 2023. This was the seventh consecutive quarter of volume growth exceeding historical seasonality in the United States. The company witnessed strong, high single-digit collections growth in Europe.
NexSys PCS system Continues to Thrive: Haemonetics’ NexSys PCS is developed to enable higher plasma yield collections, improve productivity in customers’ centers, enhance the overall donor experience and provide safe and reliable collections that will become life-changing medicines for patients.
Regarding the latest developments, the NexSys Plasma collection system offers 9-12% additional plasma yield, impeccable safety, connectivity and a superior donor experience backed by real-world evidence from tens of millions of collections.
HAE is bringing powerful innovation with FDA clearance of a redesigned bowl and the Express Plus software to shorten average collection time, optimize plasma center efficiency and reduce cost per liter.
Huge Potential of Hemostasis Management Franchise: Under the Hospital business, Hemostasis Management saw strong growth in the past few quarters. In terms of the latest development, Hemostasis Management grew 14% in the reported quarter. North America, the largest market, grew 23%, driven by increased utilization of TEG, benefits from pricing and strong capital sales. International growth was mixed, but all of the key markets in Europe delivered strong double-digit growth in the quarter.
Upbeat Guidance: For 2024, the company expects total GAAP revenue growth in the range of 4-7% on a reported basis. Organic revenue growth is anticipated to be 5-8%. The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $1.19 billion.
HAE expects the full-year adjusted earnings per share in the band of $3.45-$3.75. The Zacks Consensus Estimate for the same is pegged at $3.29.
Estimate Trend
In the past 90 days, the Zacks Consensus Estimate for Haemonetics’ 2024 earnings moved 7.3% north to $3.82.
The Zacks Consensus Estimate for 2024 revenues is pegged at $1.26 billion, suggesting an 8.1% rise from the year-ago reported number.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Align Technology (ALGN - Free Report) , HealthEquity, Inc. (HQY - Free Report) and McKesson Corporation (MCK - Free Report) .
Align Technology, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 17.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ALGN’s earnings surpassed estimates in two of the trailing four quarters and missed twice, delivering an average negative surprise of 1.76%. The company’s shares have risen 29.2% year to date compared with the industry’s 11.9% growth.
HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 23.5%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 13.03%.
The company’s shares have rallied 22% year to date against the industry’s 11.1% decline.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 8.10%.
The stock has rallied 21.5% year to date compared with the industry’s 11.9% growth.