Hospital Business Recovery to Aid Haemonetics' Q1 Earnings

Haemonetics HAE is scheduled to report first-quarter fiscal 2025 results on Aug 8, before market open.

Earnings Surprise History

HAE has a strong earnings surprise history. It beat on earnings in each of the trailing four quarters, the average surprise being 13.24%.

In the last reported quarter, the company's adjusted earnings per share of 90 cents surpassed the Zacks Consensus Estimate by 2.27%.

Q1 Estimates

The Zacks Consensus Estimate for revenues is pegged at $335.9 million, suggesting an increase of 7.9% from the year-ago reported figure.

The Zacks Consensus Estimate for EPS of $1.03 indicates a year-over-year decline of 1.9%.

Estimate Revision Trend Ahead of Earnings

Estimates for first-quarter earnings have remained constant at $1.03 per share in the past 30 days.

Let's take a look at how things might have shaped up for the MedTech major prior to the announcement.

Factors at Play

In the fiscal first quarter, Haemonetics' Hospital business segment's recurring revenues are expected to have maintained the trend of robust organic gains, contributing significantly to the company's overall revenue growth. HAE's inorganic growth is also likely to have been fueled by the acquisition of OpSens (December 2023) and Attune (April 2024).

Hospital revenues in the fiscal first quarter are once again expected to have been supported by the continued success of Vascular Closure and hemostasis management. Further, similar to the previously reported quarter, Hemostasis management revenues are expected to have witnessed strong growth on the back of TEG 6s disposables, price increases and continued growth of the U.S. installed base.

During the quarter under review, HAE announced a limited market release of the TEG 6s hemostasis analyzer system, following the FDA's 510(k) clearance for the same. The company also launched its new VASCADE MVP XL mid-bore venous closure device during the quarter. These developments are likely to have had a positive impact on the company's revenues.

On its fiscal fourth-quarter earnings call, Haemonetics mentioned growth investments aimed at advancing innovation and expanding market share in its hospital business to further enhance operating leverage in the coming years.

Going by the Zacks Consensus Estimate, Hospital business revenues are expected to increase 29.9% year over year in the fiscal first quarter.

In the fiscal first quarter, the Plasma business unit is expected to have maintained the trend of robust growth, driven by disposable volume and software.

In the fiscal fourth quarter, Plasma revenues grew on the back of robust performance of the plasma collections market, supported by strong end-market demand, frozen plasma inventory deficits and a favorable collections environment. This upbeat trend is expected to have continued in fiscal first quarter as well.

In the fiscal fourth quarter, Haemonetics completed a successful limited market release of the new Express Plus technology with more than 60,000 real-world collections. On its fiscal fourth-quarter earnings call, the company highlighted the enhancement of the NexSys platform by expanding its competitive advantage as the global industry standard for plasma collection. We expect these developments to have bolstered the company's growth in the fiscal first quarter.

Going by the Zacks Consensus Estimate, Plasma business revenues are expected to decline 6% year over year in the fiscal first quarter.

In the fiscal fourth quarter of 2024, Blood Center revenues overcame significant geopolitical challenges to emerge strong in the quarter, primarily driven by strength in the apheresis portfolio. However, this growth was offset by lower volumes caused by product rationalization, designed to preserve Blood Centers' ability to generate durable contribution margin dollars.

We believe that the issue of product rationalization might have still remained in the to-be-reported quarter, once again denting the company's top line.

Going by the Zacks Consensus Estimate, Blood Center revenues are expected to decline 5.5% year over year in the fiscal first quarter.

What Our Model Suggests

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) and a positive Earnings ESP has a higher chance of posting an earnings beat. However, this is not the case here, as you can see:

Earnings ESP: The company has an Earnings ESP of 0.00%.

Zacks Rank: The company currently carries a Zacks Rank #2.

Stocks Worth a Look

Hims & Hers Health HIMS has an Earnings ESP of +19.28% and a Zacks Rank #2 at present.

The company is set to release second-quarter 2024 results on Aug 5.

HIMS' earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 79.17%. The Zacks Consensus Estimate for second-quarter EPS implies a surge of 266.7% from the year-ago quarter's reported figure.

Penumbra PEN has an Earnings ESP of +0.08% and a Zacks Rank #2 at present. The company is slated to release second-quarter results on Jul 30.

PEN's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 25.97%. The company has a long-term earnings growth rate of 6.10% compared to the industry's 20.3%.

Teva Pharmaceutical Industries TEVA has an Earnings ESP of +2.66% and a Zacks Rank #3 at present. The company is set to release second-quarter 2024 results on Jul 31.

TEVA has a long-term earnings growth rate of 4.9% compared to the industry's 14.6%. Teva Pharmaceutical beat on earnings in three of the trailing four quarters and missed the same in one, the average surprise being 7.79%.

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