Haemonetics reported a first quarter marked by revenue and non-GAAP profit ahead of Wall Street’s expectations, despite a year-over-year sales decline. The market’s positive response reflected management’s focus on high-margin product lines and ongoing portfolio transformation, as well as operational improvements. CEO Chris Simon highlighted robust adoption of NexSys, TEG, and VASCADE technologies, noting that margin gains stemmed from both increased technology utilization and a deliberate shift away from lower-growth segments. Management credited double-digit growth in the Hospital business, particularly Blood Management and Interventional Technology franchises, as primary contributors to margin expansion, while acknowledging that macroeconomic headwinds and the planned divestiture of lower-margin businesses weighed on overall revenue.
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Haemonetics (HAE) Q1 CY2025 Highlights:
- Revenue: $330.6 million vs analyst estimates of $327.3 million (3.7% year-on-year decline, 1% beat)
- Adjusted EPS: $1.24 vs analyst estimates of $1.22 (1.6% beat)
- Adjusted EBITDA: $111.2 million vs analyst estimates of $105.8 million (33.6% margin, 5.1% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $4.85 at the midpoint, missing analyst estimates by 1.2%
- Operating Margin: 21.6%, up from 8.7% in the same quarter last year
- Organic Revenue was flat year on year (10.2% in the same quarter last year)
- Market Capitalization: $3.59 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Haemonetics’s Q1 Earnings Call
- Rohin Patel (JPMorgan) asked for color on plasma share gains and margin drivers; CEO Chris Simon clarified that growth is almost entirely from share gains and premium technology, with volume recovery expected in the year’s second half.
- Marie Thibault (BTIG) inquired about Vascular Closure performance and leadership changes; Simon explained that new leadership and field force focus would drive renewed growth, especially in the U.S., while legacy product declines are being actively addressed.
- Mike Matson (Needham & Company) questioned long-term organic growth rates; Simon replied that, following the new long-range plan to be announced in December, management aims to sustain high-single-digit organic growth, supported by strong hospital and plasma franchises.
- Anthony Petrone (Mizuho Financial Group) sought updates on VASCADE XL penetration and the regulatory path for expanded indications; Simon noted ongoing clinical trials for expanded indications and reinforced the opportunity for higher utilization within existing accounts.
- Craig Bijou (Bank of America Securities) pressed for details on plasma share gain visibility; Simon confirmed that recent contracts underpin known share gains, though exact timing is contingent on customer adoption rates.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the pace and timing of plasma share gains and technology-driven adoption among top U.S. and international collectors, (2) further expansion of hospital product utilization, especially with new TEG and VASCADE features in the U.S. and Europe, and (3) ongoing margin improvement from cost discipline and portfolio mix. Execution on these milestones, as well as updates on tariff mitigation strategies, will be critical markers for Haemonetics’ progress.
Haemonetics currently trades at $74.77, up from $64.24 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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