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Haemonetics Exceeds Q1 Expectations; Shares Jump 7.4%

Haemonetics Corporation (HAE), a global provider of innovative hematology products and solutions, delivered strong first-quarter results aided by a recovery across all of its businesses. Shares jumped 7.4% on the news and closed at $61.97 on August 11.

The company reported adjusted earnings of $0.50 per share, up 8.7% compared to the prior-year period, and beating consensus estimates of $0.46 per share.

Revenue grew 16.8% year-over-year to $228.53 million and outpaced the Street’s estimate of $219.35 million.

The Hospital segment’s revenue grew 75.1%, primarily backed by an increase in Vascular Closure revenue, resulting from the acquisition of Cardiva. Also, last year’s results were negatively impacted by the COVID-19 situation.

The Plasma segment’s revenue grew 5.3%, driven by an increase in the volume of plasma disposables and software revenue. (See Haemonetics stock charts on TipRanks)

Commenting on the results, Chris Simon, CEO of the company, said, “We remain confident in the strong end-market demand for our products and continue to anticipate full recovery from the pandemic by the end of this fiscal year. Our revised Operational Excellence Program will drive quality, service and greater productivity, while helping us to offset impacts of the anticipated customer loss, the effects of the COVID-19 pandemic, and rising inflationary pressures.”

For the full fiscal year 2022, the company affirmed its GAAP revenue growth guidance of 13% – 18%.

Additionally, the company also guided for FY22 adjusted earnings to be in the range of $2.60 – $3.00 per share, while the consensus is pegged at $2.78 per share.

In response to the strong quarterly performance, Needham analyst Michael Matson reiterated a Buy rating on the stock with a price target of $86, implying 38.8% upside potential to current levels.

Encouraged by the improving plasma trends, Matson said, “We expect Haemonetics to be able to sustain strong revenue growth driven by key products such as its NexSys PCS, TEG, and Cardiva Medical’s VASCADE. And we expect favorable pricing, mix, cost reductions, and formal restructuring programs to drive significant operating margin improvement and to sustain earnings growth well above revenue growth.”

Overall, the stock commands a Strong Buy consensus rating based on 7 Buys and 1 Hold. The average Haemonetics price target of $80.33 implies 29.6% upside potential to current levels. Shares have lost 22.5% over the past year.

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