On Jun 27, 2014, we issued an updated research report on
) - a global provider of blood management solutions. Haemonetics
delivered an unimpressive fourth quarter of fiscal 2014 with both
top and bottom-line miss.
Adjusted EPS slashed 17.9% year over year to 46 cents which
missed the Zacks Consensus Estimate of 58 cents. Likewise, revenues
of $241.1 million were down 3.5% year over year and also lagged the
Zacks Consensus Estimate of $245 million.
According to the company, the ongoing weakness in the U.S. blood
collection market, loss of a European tender and order timing in
the emerging markets were the major reasons for the
lower-than-expected revenues in the Blood center disposables
Haemonetics' blood center revenues in the U.S. continue to
remain under pressure with rapid decline in the demand for blood
products and the prices hospital pay for blood components.Red cell
transfusions in the U.S. also continue to decline with a reduction
in transfusion following the release of new guidelines by the
American Association of Blood Banks.
All these issues forced the company to provide a
lower-than-expected fiscal 2015 guidance that fails to indicate any
near-term catalyst that may improve the economic scenario in the
near future. The company expects adjusted EPS in fiscal 2015 in the
range of $1.85-$1.95. However, the Zacks Consensus Estimate of
adjusted EPS of $2.22 lies above the guided range. Moreover, total
revenue for the year is expected to decline in the range of 0-2% on
a year-over-year basis. The Zacks Consensus Estimate lies near the
lower end of the guided range with an estimated decline of 0.05% in
revenues in fiscal 2015.
Other Stocks to Consider
While Haemonetics carries a Zacks Rank #5 (Sell), better-ranked
stocks worth considering in the medical products sector are
ICU Medical, Inc.
). All the three stocks bear a Zacks Rank #2 (Buy).
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HAEMONETICS CP (HAE): Free Stock Analysis
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ICU MEDICAL INC (ICUI): Free Stock Analysis
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