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Haemonetics on a High Owing to Firm Plasma Arm, Global Growth

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On Jun 18, we issued an updated research report on Haemonetics Corporation (HAE - Free Report) . The company has been witnessing strong growth in Plasma and Hemostasis Management units for quite some time now. The stock currently sports a Zacks Rank #1 (Strong Buy).

Shares of this leading provider of hematology products and solutions have outperformed its  industry over the past year. The stock has surged 30.4% against the industry's 0.3% dip.

Haemonetics exited fourth-quarter fiscal 2019 on a promising note with solid year-over-year improvements in revenues and earnings. Per the company, benefits from complexity reduction and investments along with strength in market demand and success from early launches helped the company perform impressively.

A steady momentum in new business generation and geographical expansion are also contributing to the company’s performance of late. During the last reported quarter, the company received regulatory approvals, launched products and successfully continued to execute corporate-wide transformation. This ongoing positive trend further aided the company to outdo its initial expectations and project additional growth for fiscal 2020.

Haemonetics has been witnessing a sturdy uptick in Plasma franchise for quite some time. In the global plasma market, Haemonetics holds 80% shares approximately. In fiscal 2019, plasma witnessed consistent growth, driven primarily by robust demand for disposables in North America where revenues grew 18% from the year-ago period.

The company is progressing well with the development and launch of NexSys PCS plasmapheresis system. To date, Haemonetics converted roughly 20% of its North American install fleet to the NexSys PCS device.

Under Hospital business, Hemostasis Management benefited from progress in the last few quarters. Also, TEG emerged as the global leader in Hemostasis Management, led by solid disposable growth and amplified TEG success capital sales.

However, we are disappointed with the fact that despite generating encouraging growth at the Plasma and Hospitals segments, Haemonetics' sluggish Blood Center business moderated overall growth in the reporting cycle.

Other Key Picks

A few other top-ranked stocks in the broader medical space are Cerner Corporation , Penumbra (PEN - Free Report) and Bruker Corporation (BRKR - Free Report) . While Cerner flaunts a Zacks Rank of 1, Penumbra and Bruker carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cerner’s long-term earnings growth rate is expected to be 13.5%.

Penumbra’s long-term earnings growth rate is projected at 21.5%.

Bruker’s long-term earnings growth rate is estimated at 11.7%.

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