Yahoo Finance Haemonetics' (HAE) Hospital & Plasma Segments, Innovation Aid
Haemonetics HAE continues to expand its business, banking on growth drivers like Plasma, Thromboelastography (TEG), Hemostasis Management and the Vascular Closure business. The stock sports a Zacks Rank #1 (Strong Buy).
Haemonetics’ Plasma business unit focuses on the collection of source plasma for pharmaceutical manufacturers using apheresis devices that only collect plasma. The demand for source plasma has continued to grow due to an expanding end-user market for plasma-derived biopharmaceuticals. The business also offers software solutions to support the operations of these dedicated source plasma collection centers.
Plasma revenues grew 6% in the fourth quarter of fiscal 2024, driven primarily by disposable volume and software. The collections environment in the United States continued to be favorable, with disposables growing 4% in the quarter and 13% in fiscal 2024.
The company is gaining from the newly-completed limited market release of the new Express Plus technology with more than 60,000 real world collections. Haemonetics is currently initiating its full-market release in the United States. This technology is fast gaining new customers.
The rollout of Persona — the company’s proprietary technology proven to increase yield from 9% to 12% on average — continues to gain momentum, with more than 25 million collections.
Haemonetics’ hospital portfolio is also evolving and helping to create new opportunities for growth and diversification. Each of the four product lines has a leading market position and a mission of helping hospitals and clinicians provide the highest standard of patient care while at the same time reducing operating and procedural costs and helping decision-makers in hospitals optimize blood acquisition, storage and usage in critical settings. The company is taking impactful steps to support growth in the Hospital business, which contributes to broadening its global presence and retaining industry leadership.
Haemonetics Corporation Price
Haemonetics Corporation price | Haemonetics Corporation Quote
In terms of performance in the fiscal fourth quarter, hospital revenues increased 19%, driven by the continued success of Vascular Closure and hemostasis management. The Vascular Closure business continued to gain, driven by new account openings, both in electrophysiology and interventional cardiology.
Haemonetics’ portfolio of hemostasis diagnostic systems enables clinicians to holistically assess a patient's coagulation status at the point-of-care or laboratory setting. The company markets four viscoelastic testing systems to hospitals and laboratories as an alternative to routine blood tests — the TEG 5000 hemostasis analyzer system, the TEG 6s hemostasis analyzer system, the ClotPro hemostasis analyzer system and the HAS-100 hemostasis analyzer system.
However, uncertainty around inflationary pressure, rising interest rates and macroeconomic conditions have increased the risk of creating new or exacerbating existing economic challenges. While Haemonetics implemented cost-containment measures, selective price increases and other actions to offset the inflationary pressure in its global supply chain, the company may not be able to offset all the increases in its operational costs completely.
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. In the fiscal fourth quarter, Haemonetics faced 700 basis points of margin pressure, stemming primarily from inflationary headwinds and supply chain disruptions among other challenges.
Other Key Picks
Some other top-ranked stocks from the broader medical space are Medpace MEDP, ResMed RMD and Encompass Health Corporation EHC.
Medpace, sporting a Zacks Rank #1, reported first-quarter 2024 EPS of $3.20, which beat the Zacks Consensus Estimate by 30.6%. Revenues of $511 million improved 17.7% from last year’s comparable figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace has an estimated 2024 earnings growth rate of 26.5% compared with the industry’s 12.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 12.8%.
ResMed, carrying a Zacks Rank #2 (Buy), reported first-quarter 2024 EPS of $2.13, which topped the Zacks Consensus Estimate by 10.9%. Revenues of $1.20 billion surpassed the Zacks Consensus Estimate by 1.9%.
RMD has an estimated fiscal 2024 earnings growth rate of 17.9% compared with the industry’s 15.7%. The company delivered an average four-quarter earnings surprise of 2.8%.
Encompass Health, carrying a Zacks Rank #2, reported first-quarter 2024 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 20.4%. Net operating revenues of $1.3 billion topped the Zacks Consensus Estimate by 3.6%.
EHC has an estimated long-term earnings growth rate of 15.6% compared with the industry’s 11.7% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.7%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ResMed Inc. (RMD) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report
Encompass Health Corporation (EHC) : Free Stock Analysis Report
