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Robust Plasma Sales, New Innovations Aid Haemonetics Stock
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Haemonetics (HAE - Free Report) has been banking on its growth drivers like the Plasma and Hospital business. New product launches also lead to market expansion. The stock carries a Zacks Rank #2 (Buy) currently.
Major Factors Driving HAE Stock
Haemonetics’ Plasma business continues to grow, banking on an expanding end-user market for plasma-derived biopharmaceuticals. In the second quarter of 2024, U.S. collection volume growth was robust. Both North America software and Europe disposable revenues witnessed double-digit increases. The plasma collection market is poised for long-term growth due to the strong demand for Immunoglobulin (Ig) replacement therapies in the end market and the planned expansion of fractionation capacity across the industry.
Meanwhile, Haemonetics is progressing with the full market release of its new Express Plus technology. The ongoing enhancements in the NexSys platform are expanding its competitive advantage as the global industry standard for plasma collection. The company plans to upgrade all remaining NexSys customers to Express Plus and Persona by the end of fiscal 2025, positioning itself to gain more share both domestically and internationally. When integrated with NexLynk DMS (donor management system) — Haemonetics’ bidirectional connectivity software — the Express Plus technology is expected to significantly enhance plasma center efficiencies. Overall, the combination of Persona, Express Plus, and NexLynk has set a new industry standard for center throughput, cost per liter, and donor satisfaction.
Haemonetics’ NexSys PCS (plasma collection system) 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. The bi-directionally connected NexSys PCS with NexLynk DMS delivers a 16-minute reduction in donor door-to-door time, on average. The new, proprietary Persona Technology strengthens the NexSys PCS value proposition and reinforces the company’s commitment to supporting its Plasma customers.
Further, Haemonetics’ hospital portfolio is evolving and helping to create new opportunities for growth and diversification. Each of the four product lines has a leading market position, supporting hospitals and clinicians to deliver enhanced patient care, reduce operating and procedural costs, and optimize blood acquisition, storage and usage in critical settings. In December 2023, Haemonetics acquired OpSens, which further expanded the business with procedure-enabling technologies in high-growth areas.
In the first quarter of fiscal 2025, the Hospital business achieved a 31% increase in revenues. The performance was led by the Interventional Technologies franchise, which benefited from the recent acquisitions of Sensor Guided Technologies and Esophageal Protection product lines. The company is focused on selling the complete product range across both electrophysiology and interventional cardiology. The Vascular Closure business also contributed to the growth, driven by continued penetration of the top 600 U.S. accounts and increased emphasis on utilization across addressable procedures.
Year to date, shares of HAE have lost 9.7% against the industry’s 10.7% growth. However, the company’s consistent efforts to expand in the high-growth areas, as well as its array of new product launches are expected to help in the revival of the stock in the coming days.
Major Downside Risk for Haemonetics
Continued uncertainty around inflationary pressures, rising interest rates and macroeconomic conditions have increased the risk of new challenges or exacerbating the existing ones for Haemonetics. The ongoing geopolitical constraints in China, Taiwan, Russia, Ukraine, the Middle East and other foreign jurisdictions where the company operates materially affect its operational results. Despite implementing cost containment measures, selective price increases and other actions to offset these inflationary pressures in its global supply chain, the company is sometimes unable to offset all the increases in its operational costs completely.
Added to this, climate change (including laws or regulations passed in response thereto) could increase supply costs, including energy and transportation/freight-related expenses, or reduce the availability of raw materials. For fiscal 2025, our model estimates a 4.6% increase in the company’s cost of goods sold (on a non-GAAP basis).
Intuitive Surgical’s shares have surged 60.5% in the past year. Estimates for the company’s earnings have moved 5.1% north to $1.65 per share for 2024 in the past 30 days.
ISRG’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.97%. In the last reported quarter, it posted an earnings surprise of 16.34%.
Estimates for TransMedics’ 2024 EPS have moved up 125% to 27 cents in the past 30 days. Shares of the company have soared 135.2% in the past year compared with the industry’s 14.9% growth.
TMDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 287.50%. In the last reported quarter, it delivered an earnings surprise of 66.67%.
Estimates for Boston Scientific’s 2024 EPS have increased 1.7% to $2.40 in the past 30 days. In the past year, shares of BSX have risen 55.5% compared with the industry’s 17.9% growth.
In the last reported quarter, BSX delivered an earnings surprise of 6.90%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.18%.
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Robust Plasma Sales, New Innovations Aid Haemonetics Stock
Haemonetics (HAE - Free Report) has been banking on its growth drivers like the Plasma and Hospital business. New product launches also lead to market expansion. The stock carries a Zacks Rank #2 (Buy) currently.
Major Factors Driving HAE Stock
Haemonetics’ Plasma business continues to grow, banking on an expanding end-user market for plasma-derived biopharmaceuticals. In the second quarter of 2024, U.S. collection volume growth was robust. Both North America software and Europe disposable revenues witnessed double-digit increases. The plasma collection market is poised for long-term growth due to the strong demand for Immunoglobulin (Ig) replacement therapies in the end market and the planned expansion of fractionation capacity across the industry.
Meanwhile, Haemonetics is progressing with the full market release of its new Express Plus technology. The ongoing enhancements in the NexSys platform are expanding its competitive advantage as the global industry standard for plasma collection. The company plans to upgrade all remaining NexSys customers to Express Plus and Persona by the end of fiscal 2025, positioning itself to gain more share both domestically and internationally. When integrated with NexLynk DMS (donor management system) — Haemonetics’ bidirectional connectivity software — the Express Plus technology is expected to significantly enhance plasma center efficiencies. Overall, the combination of Persona, Express Plus, and NexLynk has set a new industry standard for center throughput, cost per liter, and donor satisfaction.
Haemonetics’ NexSys PCS (plasma collection system) 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. The bi-directionally connected NexSys PCS with NexLynk DMS delivers a 16-minute reduction in donor door-to-door time, on average. The new, proprietary Persona Technology strengthens the NexSys PCS value proposition and reinforces the company’s commitment to supporting its Plasma customers.
Further, Haemonetics’ hospital portfolio is evolving and helping to create new opportunities for growth and diversification. Each of the four product lines has a leading market position, supporting hospitals and clinicians to deliver enhanced patient care, reduce operating and procedural costs, and optimize blood acquisition, storage and usage in critical settings. In December 2023, Haemonetics acquired OpSens, which further expanded the business with procedure-enabling technologies in high-growth areas.
Haemonetics Corporation Price
Haemonetics Corporation price | Haemonetics Corporation Quote
In the first quarter of fiscal 2025, the Hospital business achieved a 31% increase in revenues. The performance was led by the Interventional Technologies franchise, which benefited from the recent acquisitions of Sensor Guided Technologies and Esophageal Protection product lines. The company is focused on selling the complete product range across both electrophysiology and interventional cardiology. The Vascular Closure business also contributed to the growth, driven by continued penetration of the top 600 U.S. accounts and increased emphasis on utilization across addressable procedures.
Year to date, shares of HAE have lost 9.7% against the industry’s 10.7% growth. However, the company’s consistent efforts to expand in the high-growth areas, as well as its array of new product launches are expected to help in the revival of the stock in the coming days.
Major Downside Risk for Haemonetics
Continued uncertainty around inflationary pressures, rising interest rates and macroeconomic conditions have increased the risk of new challenges or exacerbating the existing ones for Haemonetics. The ongoing geopolitical constraints in China, Taiwan, Russia, Ukraine, the Middle East and other foreign jurisdictions where the company operates materially affect its operational results. Despite implementing cost containment measures, selective price increases and other actions to offset these inflationary pressures in its global supply chain, the company is sometimes unable to offset all the increases in its operational costs completely.
Added to this, climate change (including laws or regulations passed in response thereto) could increase supply costs, including energy and transportation/freight-related expenses, or reduce the availability of raw materials. For fiscal 2025, our model estimates a 4.6% increase in the company’s cost of goods sold (on a non-GAAP basis).
Other Key Picks
Some other top-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , TransMedics Group (TMDX - Free Report) and Boston Scientific (BSX - Free Report) . While Intuitive Surgical and TransMedics currently sport a Zacks Rank #1 (Strong Buy) each, Boston Scientific carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical’s shares have surged 60.5% in the past year. Estimates for the company’s earnings have moved 5.1% north to $1.65 per share for 2024 in the past 30 days.
ISRG’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.97%. In the last reported quarter, it posted an earnings surprise of 16.34%.
Estimates for TransMedics’ 2024 EPS have moved up 125% to 27 cents in the past 30 days. Shares of the company have soared 135.2% in the past year compared with the industry’s 14.9% growth.
TMDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 287.50%. In the last reported quarter, it delivered an earnings surprise of 66.67%.
Estimates for Boston Scientific’s 2024 EPS have increased 1.7% to $2.40 in the past 30 days. In the past year, shares of BSX have risen 55.5% compared with the industry’s 17.9% growth.
In the last reported quarter, BSX delivered an earnings surprise of 6.90%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.18%.