On August 8, 2024, Haemonetics Corp (HAE, Financial) released its 8-K filing for the first quarter of fiscal 2025, ending June 29, 2024. The company, which specializes in medical products and solutions for blood and plasma collection, surgical suites, and hospital transfusion services, reported earnings per share (EPS) of $0.74, surpassing the analyst estimate of $0.58. Revenue for the quarter reached $336 million, exceeding the estimated $335.38 million.
Company Overview
Haemonetics Corp aims to improve patient care and reduce healthcare costs through its innovative medical products and solutions. The company operates under three segments: plasma, blood center, and hospital. The plasma and hospital segments are the primary growth drivers, while the blood center segment faces higher competition. Revenue is primarily driven by the demand for disposable blood component collection and processing sets and the related equipment.
Performance and Challenges
Haemonetics Corp reported a revenue increase of 8% year-over-year, reaching $336 million. Organic revenue growth was 3%. The company’s performance underscores the strength and breadth of its products in high-growth markets. However, the gross margin decreased to 52% from 53.7% in the previous year, primarily due to amortization and restructuring costs.
Chris Simon, Haemonetics’ CEO, stated: "Our first quarter performance underscores the strength and breadth of our products, and our impact in attractive high growth markets. Through our innovation and investments we are poised to expand our market share, margins and operating leverage. We are confident in our strategy for sustainable and profitable growth as we execute against our long-range plan."
Financial Achievements
Haemonetics Corp achieved an adjusted EPS of $1.02, significantly higher than the GAAP EPS of $0.74. The adjusted gross margin was 55.3%, up 110 basis points from the previous year. Despite these achievements, the company faced increased operating expenses, which rose to 40.2% of revenue from 36.5% in the prior year, driven by acquisition-related costs and increased headcount.
Income Statement Highlights
| Metric | Q1 FY2025 | Q1 FY2024 |
|---|---|---|
| Revenue | $336 million | $311 million |
| Gross Margin | 52.0% | 53.7% |
| Operating Income | $39.8 million | $53.7 million |
| Net Income | $38.4 million | $41.0 million |
| EPS | $0.74 | $0.80 |
Balance Sheet and Cash Flow
Haemonetics Corp reported cash on hand of $344.4 million, an increase of $165.6 million since the end of fiscal 2024. The company issued $682.8 million in convertible senior notes, using the proceeds to repay debt and fund acquisitions. However, the company experienced a cash outflow from operating activities of $27.4 million and a free cash outflow of $16.9 million, primarily due to increased inventory balances and a legal settlement payment.
Fiscal 2025 Guidance
Haemonetics Corp reaffirmed its fiscal 2025 guidance, projecting total revenue growth of 5-8% and adjusted EPS of $4.45 to $4.75. The company expects continued growth in its hospital segment, with projected revenue growth of 27-32%, while the plasma and blood center segments are expected to face slight declines.
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Explore the complete 8-K earnings release (here) from Haemonetics Corp for further details.
