) have been on the rise since it detailed its key growth
initiatives at a healthcare conference on Jan 9, 2013. It
culminated with the company hitting its all-time high of $43.38 on
Jan 18. In addition, this Zacks Rank #1 (Strong Buy) provider of
blood management solutions surprised by 18.4% in its second quarter
and has a long-term expected earnings growth rate of 12.3%.
Haemonetics believes that fiscal 2013 is likely to be a ground
breaking year based on several growth factors, including the
acquisition of the transfusion medicine business of Pall
) in August 2012, the limited market release of the paperless
phlebotomy offering by the end of the fourth quarter of fiscal 2013
and its emerging-market growth initiatives with a primary focus on
Additionally, the company's robust results for the second quarter
of fiscal 2013 remain noteworthy. On Oct 29, 2012, Haemonetics
reported adjusted earnings per share that surpassed the Zacks
Consensus Estimate by more than 18%. Revenues increased 22% year
over year to $218.2 million. Also, after taking into account the
newly added whole blood business, the company recorded organic net
revenue of $189.6 million, up 6% year over year.
The company will report again on January 30. The Zacks Consensus
Estimate is currently at 47 cents per share.
The Zacks Consensus Estimate for fiscal 2013 has increased 1.8%
over the past 90 days to $1.69 per share, representing
year-over-year growth of about 11.23%. Meanwhile, the Zacks
Consensus Estimate for 2014 is at $2.02, indicting year-over-year
growth of about 19.31%.
Haemonetics' valuation looks stretched compared with its peers by
most metrics. The company is currently trading at a forward P/E of
25.66x, which is almost a 10.94% premium to the peer group average
of 23.13x. The price-to-book ratio of 2.88x is also 28.57% higher
than the peer group average of 2.24x. Similarly, the
price-to-free-cash-flow ratio is significantly higher at 67.16x,
compared with the peer group average of 31.96x. The premium ratios
are warranted, given its solid second-quarter results and huge
Haemonetics' price performance has been reasonably strong,
especially following the release of its fiscal second-quarter
results. The stock is currently trading above both its 50- and
Haemonetics provides blood management solutions to customers
encompassing blood and plasma collectors, hospitals and health care
providers globally. The company's portfolio of integrated devices,
information management, and consulting services offers blood
management solutions for each facet of the blood supply chain,
helping better clinical outcomes. The company has a market
capitalization of $2.24 billion.
Other Zacks Rank #1 (Strong Buy) medical devices stocks include
Qiagen NV (
) and MedAssets, Inc. (
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