Haemonetics Corporation HAE delivered adjusted earnings per share (EPS) of 77 cents in the fourth quarter of fiscal 2023, reflecting growth of 18.5% year over year. The bottom line surpassed the Zacks Consensus Estimate by 13.2%.
On a GAAP basis, the EPS was 57 cents compared with 19 cents in the prior-year quarter.
For the full year, adjusted earnings were $3.03 per share, 17.4% up from the year-ago period. The metric also beat the Zacks Consensus Estimate by 3.1%.
Revenues increased 14.9% (up 17.2% on an organic basis) to $304.4 million in the fourth quarter of fiscal 2023. The top line beat the Zacks Consensus Estimate by 7%.
Haemonetics Corporation Price, Consensus and EPS Surprise
Haemonetics Corporation price-consensus-eps-surprise-chart | Haemonetics Corporation Quote
Full-year revenues were $1.17 billion, reflecting a 17.7% increase from the year-ago period (up 21% at the constant exchange rate or CER). Revenues surpassed the Zacks Consensus Estimate by 1.7%.
The unprecedented collections recovery in plasma volumes, the performance of hemostasis management and vascular closure and operational excellence toward greater productivity fueled Haemonetics’ strong performance throughout fiscal 2023.
Segments in Detail
At Plasma, revenues of $131.2 million (accounting for 43.1% of the total revenues) rose 29.8% year over year (up 31.2% on an organic basis) in the reported quarter.
Revenues at Blood Center (22.1%) fell 8.1% (down 3.7% on an organic basis) to $67.2 million.
Hospital revenues (33.1%) rose 17.6% (up 19.3% on an organic basis) to $100.8 million. primarily driven by growth in Vascular Closure and Hemostasis Management.
Service revenues (1.7%) increased 2.9% (up 6.8% on an organic basis) to $5.2 million.
In the fourth quarter of fiscal 2023, the company-adjusted gross margin was 51.8%, down 180 basis points (bps) year over year. The primary drivers of the decrease were inflationary pressures on global manufacturing and the supply chain, increased depreciation expenses and foreign exchange partially offset by volume and price benefits.
Company-adjusted operating expenses in the fourth quarter of fiscal 2023 were $103.6 million, up 8.7% from the year-ago quarter. The increase was primarily driven by performance-based compensations, investments in sales and marketing and R&D, partially offset by a decrease in freight costs and Operational Excellence Program savings.
The company-adjusted operating income was $53.9 million in the quarter under discussion, up 15.8% year over year. The adjusted operating margin was 17.7%, up 10 bps from the year-ago quarter.
Haemonetics exited fiscal 2023 with cash and cash equivalents of $284.5 million compared with $259.5 million at the end of the fourth quarter of fiscal 2022. The long-term debt at the end of the fiscal fourth quarter was $754.1 million, up from $559.4 million at the end of the fourth quarter of 2022.
The cumulative net cash flow from operating activities at the end of the fourth quarter of fiscal 2023 was $273.1 million compared to the $172.3 million cash inflow from operating activities a year ago.
As part of its previously announced $300 million share repurchase program, the company repurchased 997,406 shares of its common shares for $75.0 million via an accelerated share repurchase program in the fiscal second quarter. However, it did not repurchase any additional stock in the fourth quarter of 2023.
Haemonetics provided its outlook for fiscal 2024.
For 2024, the company expects total GAAP revenue growth in the range of 4%-7% on a reported basis. Organic revenue growth is anticipated at 5%-8%. The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $1.19 billion.
HAE expects the full-year adjusted EPS in the band of $3.45-$3.75. The Zacks Consensus Estimate for the same is pegged at $3.29.
Haemonetics ended the fourth quarter of fiscal 2023 with better-than-expected earnings and revenues. The robust volume growth and price benefits in the Plasma business drove the quarter’s top line.
Revenues from HAE’s hospital business came in at $100 million for the first time, which is highly appreciated. The Vascular Closure business favorably contributing toward operating margins also seems promising.
For fiscal 2023, Haemonetics generated $26 million in gross savings from its operational excellence program, with cumulative gross savings slightly ahead of the plan. The company continues to prioritize investments in high-impact and high-value projects, with plans to amplify the domestic production of NexSys PCS devices to support plasma customer growth requirements.
However, the year-over-year decline to flat revenue guidance in HAE’s Blood Center business is discouraging. The pacing of revenues in this business is backend loaded with an unfavorable order timing impact in the first half of the year compared with fiscal 2023.
Zacks Rank & Key Picks
Haemonetics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Edwards Lifesciences Corporation EW, Intuitive Surgical, Inc. ISRG and Johnson & Johnson JNJ.
Edwards Lifesciences, carrying a Zacks Rank #2 (Buy), reported a first-quarter 2023 adjusted EPS of 62 cents, beating the Zacks Consensus Estimate by 1.6%. Revenues of $1.46 billion outpaced the consensus mark by 4.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Edwards Lifesciences has a long-term estimated growth rate of 6.8%. EW’s earnings surpassed estimates in two of the trailing four quarters, missed the same in one and broke even in the other, the average being 1.2%.
Intuitive Surgical, having a Zacks Rank #2, reported a first-quarter 2023 adjusted EPS of $1.23, which beat the Zacks Consensus Estimate by 3.4%. Revenues of $1.70 billion outpaced the consensus mark by 6.9%.
Intuitive Surgical has a long-term estimated growth rate of 13%. ISRG’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 1.9%.
Johnson & Johnson reported first-quarter 2023 adjusted earnings of $2.68 per share, beating the Zacks Consensus Estimate by 6.8%. Revenues of $24.75 billion surpassed the Zacks Consensus Estimate by 5%. It currently carries a Zacks Rank #2.
Johnson & Johnson has a long-term estimated growth rate of 5.5%. JNJ’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.9%.
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