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Haemonetics' Q2 Earnings and Revenues Top, Stock Up, Margins Expand
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Haemonetics Corporation (HAE - Free Report) delivered adjusted earnings per share (EPS) of $1.12 in the second quarter of fiscal 2025, up 13.1% year over year. The bottom line surpassed the Zacks Consensus Estimate by 2.8%.
On a GAAP basis, the EPS was 66 cents compared with 48 cents in the prior-year quarter.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Following the earnings announcement on Nov. 7, shares of HAE increased 1% in Friday’s session, finishing at $87.42.
HAE’s Q2 Total Revenues
Revenues increased 8.6% (up 3.7% on an organic basis) to $345.5 million in the second quarter of fiscal 2025. The top line beat the Zacks Consensus Estimate by 0.7%.
HAE’s Q2 Segmental Details
At Plasma, revenues of $138.6 million (accounting for 40.1% of the total revenues) were down 3% year over year (same on an organic basis) in the reported quarter. Our model projected the unit’s revenues to be $135.4 million.
The decrease resulted from lower sales volumes in North America is related to the previously announced customer transition of CSL Plasma, whose non-exclusive supply agreement with the company is scheduled to expire in December 2025.
Revenues at Blood Center (19.8%) fell 1.6% (down 0.9% on an organic basis) to $68.5 million. Our model forecast stood at $67.6 million. The downside was due to declines in the Whole Blood business.
Hospital revenues (40.1%) rose 30.9% (up 15.8% on an organic basis) to $138.4 million. Our model projected $138.2 million in revenues for this segment.
The revenue increase was led by product lines within the Interventional Technologies franchise and the benefits of Sensor Guided Technologies and Esophageal Protection that were recently acquired. Growth in the Vascular Closure and Blood Management Technologies also contributed.
Haemonetics Corporation Price, Consensus and EPS Surprise
In the second quarter of fiscal 2025, the company-adjusted gross margin was 56.7%, up 270 basis points (bps) year over year. The primary drivers of the increase were volume, mix and price.
Company-adjusted operating expenses, as a percentage of revenues, were 32.5% in the second quarter of fiscal 2025 compared with 34.2% in the prior-year period.
The decrease was driven by operating leverage and decreased performance-based compensation, partially offset by costs associated with the operations of recent acquisitions and increased headcount.
The company-adjusted operating income was $83.5 million in the quarter under discussion, up 22.2% year over year. The adjusted operating margin was 24.2%, up 270 bps from the year-ago quarter’s levels.
HAE’s Financial Position
Haemonetics exited the second quarter of fiscal 2025 with cash and cash equivalents of $299.3 million compared with $344.4 million at the end of the fiscal first quarter. Long-term debt was $1.22 billion, almost consistent with the reported fiscal first-quarter figure.
The cumulative net cash flow from operating activities at the end of the second quarter of fiscal 2025 was $48.8 million compared with $99.1 million in the year-ago period.
HAE’s Updated 2025 Guidance
The company now expects fiscal 2025 GAAP revenue growth in the range of 5-8% on a reported basis (same as earlier).
Organic revenue growth is anticipated in the range of 1-4% (earlier 0-3%). The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.39 billion.
HAE expects full-year 2025 adjusted EPS in the band of $4.45-$4.75 (unchanged). The Zacks Consensus Estimate for the same is pegged at $4.59.
Our Take on HAE
Haemonetics exited the second quarter of fiscal 2025 with earnings and revenues topping estimates. The solid performance reflects the company’s progress with the execution of its long-range plan and response to market trends. The company continues to set the standard in plasma collection, accelerating center conversions and gaining share with the newest technologies, while expanding its presence and successfully addressing emerging industry trends in attractive hospital markets. Expansion of both margins in the quarter bodes well as well.
Meanwhile, both Plasma and Blood Center businesses saw a decrease in revenues in the quarter.
HAE’s Zacks Rank & Other Key Picks
Haemonetics currently carries a Zacks Rank #2 (Buy).
Some other stocks from the broader medical space are Quest Diagnostics (DGX - Free Report) , Intuitive Surgical (ISRG - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
DGX’s 2024 earnings are expected to surge 2.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.3%.
Intuitive Surgical, currently carrying a Zacks Rank #2, posted a third-quarter 2024 EPS of $1.84, beating the Zacks Consensus Estimate by 11.5%. Revenues of $2.04 billion surpassed the Zacks Consensus Estimate by 1.2%.
ISRG has an estimated 2024 earnings growth rate of 20.1% compared with the industry’s 13.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.9%.
Boston Scientific Corporation, currently carrying a Zacks Rank #2, reported third-quarter 2024 adjusted earnings of 63 cents per share, which surpassed the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion beat the Zacks Consensus Estimate by 4.5%.
BSX has an estimated 2024 earnings growth rate of 17.6% compared with the industry’s 11.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.
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Haemonetics' Q2 Earnings and Revenues Top, Stock Up, Margins Expand
Haemonetics Corporation (HAE - Free Report) delivered adjusted earnings per share (EPS) of $1.12 in the second quarter of fiscal 2025, up 13.1% year over year. The bottom line surpassed the Zacks Consensus Estimate by 2.8%.
On a GAAP basis, the EPS was 66 cents compared with 48 cents in the prior-year quarter.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Following the earnings announcement on Nov. 7, shares of HAE increased 1% in Friday’s session, finishing at $87.42.
HAE’s Q2 Total Revenues
Revenues increased 8.6% (up 3.7% on an organic basis) to $345.5 million in the second quarter of fiscal 2025. The top line beat the Zacks Consensus Estimate by 0.7%.
HAE’s Q2 Segmental Details
At Plasma, revenues of $138.6 million (accounting for 40.1% of the total revenues) were down 3% year over year (same on an organic basis) in the reported quarter. Our model projected the unit’s revenues to be $135.4 million.
The decrease resulted from lower sales volumes in North America is related to the previously announced customer transition of CSL Plasma, whose non-exclusive supply agreement with the company is scheduled to expire in December 2025.
Revenues at Blood Center (19.8%) fell 1.6% (down 0.9% on an organic basis) to $68.5 million. Our model forecast stood at $67.6 million. The downside was due to declines in the Whole Blood business.
Hospital revenues (40.1%) rose 30.9% (up 15.8% on an organic basis) to $138.4 million. Our model projected $138.2 million in revenues for this segment.
The revenue increase was led by product lines within the Interventional Technologies franchise and the benefits of Sensor Guided Technologies and Esophageal Protection that were recently acquired. Growth in the Vascular Closure and Blood Management Technologies also contributed.
Haemonetics Corporation Price, Consensus and EPS Surprise
Haemonetics Corporation price-consensus-eps-surprise-chart | Haemonetics Corporation Quote
HAE’s Margin Performance
In the second quarter of fiscal 2025, the company-adjusted gross margin was 56.7%, up 270 basis points (bps) year over year. The primary drivers of the increase were volume, mix and price.
Company-adjusted operating expenses, as a percentage of revenues, were 32.5% in the second quarter of fiscal 2025 compared with 34.2% in the prior-year period.
The decrease was driven by operating leverage and decreased performance-based compensation, partially offset by costs associated with the operations of recent acquisitions and increased headcount.
The company-adjusted operating income was $83.5 million in the quarter under discussion, up 22.2% year over year. The adjusted operating margin was 24.2%, up 270 bps from the year-ago quarter’s levels.
HAE’s Financial Position
Haemonetics exited the second quarter of fiscal 2025 with cash and cash equivalents of $299.3 million compared with $344.4 million at the end of the fiscal first quarter. Long-term debt was $1.22 billion, almost consistent with the reported fiscal first-quarter figure.
The cumulative net cash flow from operating activities at the end of the second quarter of fiscal 2025 was $48.8 million compared with $99.1 million in the year-ago period.
HAE’s Updated 2025 Guidance
The company now expects fiscal 2025 GAAP revenue growth in the range of 5-8% on a reported basis (same as earlier).
Organic revenue growth is anticipated in the range of 1-4% (earlier 0-3%). The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.39 billion.
HAE expects full-year 2025 adjusted EPS in the band of $4.45-$4.75 (unchanged). The Zacks Consensus Estimate for the same is pegged at $4.59.
Our Take on HAE
Haemonetics exited the second quarter of fiscal 2025 with earnings and revenues topping estimates. The solid performance reflects the company’s progress with the execution of its long-range plan and response to market trends. The company continues to set the standard in plasma collection, accelerating center conversions and gaining share with the newest technologies, while expanding its presence and successfully addressing emerging industry trends in attractive hospital markets. Expansion of both margins in the quarter bodes well as well.
Meanwhile, both Plasma and Blood Center businesses saw a decrease in revenues in the quarter.
HAE’s Zacks Rank & Other Key Picks
Haemonetics currently carries a Zacks Rank #2 (Buy).
Some other stocks from the broader medical space are Quest Diagnostics (DGX - Free Report) , Intuitive Surgical (ISRG - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Quest Diagnostics reported third-quarter 2024 adjus
ted earnings of $2.30 per share, which surpassed the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion beat the consensus mark by 3.4%. DGX carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DGX’s 2024 earnings are expected to surge 2.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.3%.
Intuitive Surgical, currently carrying a Zacks Rank #2, posted a third-quarter 2024 EPS of $1.84, beating the Zacks Consensus Estimate by 11.5%. Revenues of $2.04 billion surpassed the Zacks Consensus Estimate by 1.2%.
ISRG has an estimated 2024 earnings growth rate of 20.1% compared with the industry’s 13.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.9%.
Boston Scientific Corporation, currently carrying a Zacks Rank #2, reported third-quarter 2024 adjusted earnings of 63 cents per share, which surpassed the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion beat the Zacks Consensus Estimate by 4.5%.
BSX has an estimated 2024 earnings growth rate of 17.6% compared with the industry’s 11.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.