Haemonetics Beats in the Quarter; Plasma Catchup from Pandemic and Strong Hospital Growth Continue to Drive Results
11-6-23 (by: Scott Gleason) Haemonetics Corporation has announced its financial results for the second quarter of fiscal 2024 with reported revenues of $318 million, marking a 7% increase compared to the same period in the previous year. Growth deaccelerated in the quarter from the June quarter but exceeded consensus forecasts of $313.1 million.
Plasma revenue was $141.9 million, showing growth of 11.0%. Plasma revenues are levered to the development of drugs based upon plasma derivatives. Management noted that pricing and volume with Nexsys, its plasma collection technology, and strong software growth. Much of the recent strength in plasma is due to drug fractionating customers continuing to catch up following the pandemic where collection volumes declined dramatically and inventory levels for these critical drugs declined significantly. The company stated that limited market release of the new collection bowl and Express Plus technology is underway. These enhancements increase procedure speed to allow faster customer collection times and enhance collection center productivity.
Blood center revenue was $68.1 million, representing a decline of 7.6%. The company noted that whole blood was down 25% following a product recall and the company’s plans to rationalize down this product line over multiple years in favor of other collection systems.
Hospital revenue was $103.1 million with strong growth of 13.5%. Vascular closure was up 30% which the company attributed to new account growth. Hemostasis was up 8% in the quarter with volume and price for TEG disposables being offset by lower capital placements. The company is discontinuing its ClotPro analyzer and will replace existing systems with the TEG 6s system. Management noted the recently announced planned acquisition of OpSens, Inc. which further diversifies the company into interventional cardiology, and is expected to be immediately accretive to both growth and earnings. The company competes in markets representing $1.1 billion and the company noted its plans to have sales call points at 600 U.S. hospitals comprising 80% of transcatheter aortic valve replacement procedures and 60% of coronary interventions largely completed by the end of 2024.
The company reported an adjusted operating income of $68.3 million for the second quarter of fiscal 2024 and the adjusted operating margin was 21.5%, an improvement of 110 basis points from the same period of fiscal 2023. Adjusted earnings per diluted share were $0.99, far exceeding consensus forecasts of $0.89.
The company raised its guidance for the year to 7-9% reported revenue growth from previous guidance of 6-9% growth. It also raised its adjusted EPS outlook to $3.75-$3.95 from $3.60-$3.90.
Simon commented on the financial results and future growth, stating, “In our second quarter, we continued to strengthen our momentum and industry leadership, delivering growth while broadening our global presence. Our planned acquisition of OpSens, Inc. creates powerful opportunities for accelerated growth and diversification, and we are committed to supporting the long-term success of our businesses through continued strategic portfolio evolution and additional growth investments.”