Why Haemonetics Shares Are Trading Higher Today?

Haemonetics Corporation HAE posted Q3 FY22 sales of $259.77 million, +8% Y/Y, missing the consensus of $ $266.74 million. Organic revenue was down 0.8%.

• The Company posted an adjusted EPS of $0.84, up 3.7% compared to Q3 FY21, beating the consensus of $0.73.
• Plasma segment sales declined 5.4% Y/Y (-2.0% organically) to $96.46 million, Blood Centre unit sales fell 6.5% (-7.3%) to $ 75.69 million, and Hospital segment sales increased 56.3% (10.5%) to $82.27 million.
• The adjusted gross margin was 54.9%, up 15.4% compared to the prior year, due to Vascular Closure business acquisition, price & favorable product mix, partially offset by inflationary pressures in global manufacturing and supply chain. 
• Adjusted operating income was $58.8 million, up 11.8%, and the margin was 22.6%, up 70 basis points compared with Q3 FY21.
• Related: Haemonetics' Vascade Vascular Closure Device Includes Same-Day Discharge Label.
• Guidance: Haemonetics updated its FY22 organic sales to 7% - 10%, up from previous guidance of 5% - 7%.
• It expects Plasma revenue to grow 10% - 20% (prior guidance of 8% - 10%) and Hospital revenue to increase between 15% - 20% (16 - 18%).
• Blood Center organic revenue decline remains unchanged at (3)% - (5)%
• Total company GAAP revenue guidance includes $90 - $95 million of revenue related to Vascular Closure. Hospital organic revenue guidance consists of a Hemostasis Management organic revenue growth rate in the mid-twenties.
• Haemonetics narrowed FY22 adjusted EPS guidance from $2.40-$2.65 to $2.45-$2.55 versus the consensus of $2.53.
• Price Action: HAE shares are trading higher by 17.1% at $55.02 on the last check Tuesday.