Group 1 - The focus is on producing objective, data-driven research primarily about small- to mid-cap companies, which are often overlooked by many investors [1] - Occasionally, large-cap companies are analyzed to provide a broader perspective on the equity markets [1] Group 2 - There is a beneficial long position in the shares of HAE, indicating a positive outlook on the company's stock [2]

Core Insights - Haemonetics reported Q3 CY2025 revenue of $327.3 million, a 5.3% decline year-on-year, but exceeded analyst estimates of $310.8 million [1][6] - The company achieved a non-GAAP profit of $1.27 per share, which was 14.3% above analysts' consensus estimates of $1.11 [1][6] - Adjusted EBITDA was $112.2 million, representing a 34.3% margin and a 14% beat against analyst expectations [6] Management Commentary - Management attributed the revenue outperformance to strong share gains in plasma collection solutions and sustained growth in Blood Management Technologies, alongside disciplined cost management [3][5] - CEO Chris Simon highlighted the results as a reflection of disciplined execution, strong core product growth, record margin expansion, and solid cash-converting earnings [3] - The hospital segment contributed significantly to operating margin improvement, driven by demand for viscoelastic testing and actions to address underperformance in interventional technologies [3] Future Outlook - Haemonetics updated its guidance, focusing on plasma share gains, new product launches, and continued cost discipline [4] - The company is rolling out its heparinase neutralization cartridge in Europe and Japan, with targeted investments to boost interventional technology growth, particularly in vascular closure [4] - Planned acquisition of Vivasure and further product pipeline expansion are seen as potential growth drivers beyond the current year [4] Financial Metrics - Operating margin improved to 17.9%, up from 15% in the same quarter last year [6] - Organic revenue fell by 1.8% year-on-year, outperforming analyst estimates of a 5.3% decline [6] - Market capitalization stands at $3.23 billion [6]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Core Insights - Haemonetics shares surged 22.1% following the release of third-quarter results that exceeded analyst expectations and an upward revision of full-year financial guidance [1][2] Financial Performance - The company reported adjusted earnings of $1.27 per share on revenue of $327.3 million, both surpassing Wall Street forecasts [2] - Total revenue declined 5.3% year-on-year, but organic revenue fell only 1.8%, indicating resilience in core operations [2] - Operating margin improved to 17.9% from 15% in the same quarter last year, and free cash flow reached $106.3 million [2] - Management raised full-year adjusted earnings per share guidance to a midpoint of $4.90 [2] Market Reaction - Haemonetics shares are characterized by low volatility, with only 8 moves greater than 5% in the past year, suggesting significant market impact from recent news [4] - The stock has experienced a decline of 16.9% since the beginning of the year and is currently trading 30.2% below its 52-week high of $93.38 [6]

Financial Data and Key Metrics Changes - Second quarter revenue was $327 million, reflecting a 5% reported revenue decline, while year-to-date revenue was $649 million, also down 5% [4] - Adjusted EPS increased 13% in the quarter to $1.27 and 11% year-to-date to $2.36 [16] - Adjusted gross margin reached 60.5% in the second quarter, up 380 basis points year-over-year [12] - Adjusted operating income increased 5% in the second quarter to $87 million, with adjusted operating margin expanding 250 basis points to 26.7% [15] Business Line Data and Key Metrics Changes - Hospital revenue was $146 million in the second quarter, up 5% on a reported basis and 4% organic [5] - Blood management technologies grew 12% in the quarter and 13% year-to-date, driven by hemostasis management [5] - Plasma revenue was $125 million in the quarter, down 10% on a reported basis, but organic revenue grew 19% [8] - Blood center reported revenue declined 18% in the quarter, but organic revenue grew 4% [10] Market Data and Key Metrics Changes - U.S. plasma collections grew in the high single digits, while European collections continued to grow in double digits [9] - The company raised its full-year plasma revenue guidance to a decline of 4%-7% or 14%-17% organic growth excluding CSL [9] - Hospital revenue growth guidance was updated to 4%-7%, reflecting sustained growth in blood management technologies [8] Company Strategy and Development Direction - The company is focused on advancing its portfolio and transformation to sustain momentum beyond its long-range plan [4] - Strategic priorities include meeting debt obligations, returning excess cash to shareholders, and advancing targeted investments in growth products [20] - The company aims to strengthen execution in interventional technologies to accelerate growth and margin expansion beyond FY 2026 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustained robust growth of the plasma therapeutics market, particularly immunoglobulins [9] - The company anticipates continued margin expansion in the second half of the fiscal year [16] - Management highlighted the importance of disciplined execution and a high-performance culture in driving long-term value creation [20] Other Important Information - The company raised its full-year revenue guidance from a reported decline of 3%-6% to a decline of 1%-4% [11] - Free cash flow guidance was raised to $170-$210 million, with a commitment to maintain a free cash flow to adjusted net income ratio in excess of 70% [18] - The company ended the quarter with $296 million in cash and total debt of $1.2 billion [18] Q&A Session Summary Question: What are the assumptions for collections growth in the second half? - Management indicated that the second quarter was driven by share gains, innovation pricing, and collections volume growth, with high single-digit growth in the U.S. and double-digit growth in Europe expected to continue [23][24] Question: Can you provide an update on IVT commercial efforts? - Management noted that hospital business was the largest contributor to margin expansion, with a focus on blood management technologies and actions to regain growth momentum in IVT [26][27] Question: How is the launch of the HN cartridge going in EMEA and Japan? - Management expects the launch to be a significant source of sustainable double-digit growth, although market dynamics differ from the U.S. [54][56] Question: What is the outlook for the Vascade business? - Management expressed confidence in regaining share in the competitive market, with ongoing initiatives to strengthen the sales force and improve market acceptance [40][45] Question: How will share repurchases impact EPS? - Management indicated that share repurchases contributed a few cents to EPS, and they aim to keep dilution in check while being opportunistic with capital deployment [39][71]

Core Insights - Haemonetics reported quarterly earnings of $1.27 per share, exceeding the Zacks Consensus Estimate of $1.12 per share, and up from $1.12 per share a year ago [1] - The earnings surprise was +13.39%, with the company having surpassed consensus EPS estimates three times in the last four quarters [2] Financial Performance - The company posted revenues of $327.32 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.22%, but down from $345.51 million year-over-year [3] - Haemonetics has also topped consensus revenue estimates three times over the last four quarters [3] Stock Performance and Outlook - Haemonetics shares have declined approximately 35% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [4] - The current consensus EPS estimate for the upcoming quarter is $1.28 on revenues of $330.9 million, and for the current fiscal year, it is $4.80 on revenues of $1.3 billion [8] Industry Context - The Medical - Products industry, to which Haemonetics belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges ahead [9]

Second Quarter Fiscal 2026 Results November 6, 2025 © 2025 Haemonetics Corporation Q2 Fiscal 2026 Conference Call Detail Conference call will take place at 8:00 a.m. ET on November 6, 2025, and can be accessed via live webcast: Link or teleconference: Link The financial release, accompanying slides, and a replay of the conference call (beginning at 11:00 AM ET) are available online at www.haemonetics.com. Conference call speakers: Chris Simon President & CEO James D'Arecca EVP, Chief Financial Officer Olga ...

Core Insights - BioCryst Pharmaceuticals is under review by the U.S. FDA for the oral granule formulation of ORLADEYO for pediatric patients aged 2 to <12 years, with a decision expected by December 12, 2025, which would make it the first targeted oral prophylactic therapy for this age group [1][2][4] Clinical Trial Data - The APeX-P clinical trial has shown early and sustained reductions in monthly attack rates for pediatric patients with hereditary angioedema (HAE) treated with ORLADEYO over one year [1][6] - At month 1, 65.5% of patients were attack-free, increasing to 70.4% by month 12, with a median attack rate of 0 for 11 out of 12 months [7] - The trial demonstrated high continuation rates, with 93.1% of patients completing at least 48 weeks of treatment [7] Psychosocial Impact - HAE attacks have a significant negative psychosocial impact on pediatric patients and their caregivers, affecting mental health and quality of life [4][11] - The majority of young patients experience symptoms before age 6, with a median age at diagnosis of 2 years [7][13] - Caregivers report that HAE attacks occur approximately every 3 months and are rated as moderately severe [13] Emergency Department Experiences - Over three-quarters of adolescents and nearly half of caregivers reported at least one emergency department (ED) or hospital visit before age 12, often characterized by treatment delays and heightened stress [23] - HCPs express concern about inadequate care and the long-term mental health impacts of these ED visits on young patients [23] Safety and Tolerability - ORLADEYO was found to be safe and well-tolerated, with no new safety signals identified during the trial [7][8] - The most commonly reported treatment-emergent adverse event was nasopharyngitis [7]

Financial Performance - Net revenues decreased by 5.3% and 4.8% for the three and six months ended September 27, 2025, compared to the same periods in fiscal 2025, primarily due to customer transition of CSL Plasma and divestiture of the Whole Blood product line [144]. - Gross profit increased by 3.9% to $194.7 million for the three months ended September 27, 2025, and by 6.8% to $387.0 million for the six months ended September 27, 2025 [144]. - Operating income rose by 13.1% and 22.9% for the three and six months ended September 27, 2025, driven by pricing benefits and decreased restructuring costs [145]. - Plasma segment revenues decreased by 9.5% for the three months and 7.0% for the six months ended September 27, 2025, primarily due to lower sales volumes in North America [151]. - Blood Center revenues fell by 17.6% for the three months and 19.6% for the six months ended September 27, 2025, mainly due to the divestiture of the Whole Blood product line [153]. - Hospital segment revenues increased by 5.1% for the three months and 4.7% for the six months ended September 27, 2025, supported by the Blood Management Technologies product line [150]. - Constant currency growth measures indicated a revenue decline of 6.0% for the three months and 5.5% for the six months ended September 27, 2025, highlighting the impact of foreign exchange rates [149]. Share Repurchase and Debt Management - The company repurchased a total of 1,430,579 shares at an average price of $52.43 under an accelerated share repurchase agreement, with $425.0 million remaining for future repurchases [143]. - The company approved a new three-year share repurchase program in April 2025, authorizing up to $500.0 million, with $75.0 million repurchased by September 2025 [176]. - The company repurchased $200.0 million of its 2026 convertible senior notes, resulting in a net gain of $12.6 million [171]. - As of September 27, 2025, the outstanding balance under the term loan was $242.2 million with an effective interest rate of 6.4% [174]. - As of September 27, 2025, total outstanding debt under the senior unsecured term loan was $242.2 million with an effective interest rate of 6.4% [194]. - The principal amount of the term loan under the 2024 Revised Credit Facilities amortizes quarterly, starting at 2.5% for the first three years [173]. Cash Flow and Expenses - Net cash provided by operating activities increased by $107.3 million to $128.7 million for the six months ended September 27, 2025, compared to the same period in fiscal 2025 [179]. - Net cash used in investing activities decreased by $99.1 million to $(63.5) million for the six months ended September 27, 2025, compared to $(162.6) million in fiscal 2025 [180]. - Net cash provided by financing activities decreased by $337.9 million to $(79.0) million for the six months ended September 27, 2025, compared to $258.9 million in fiscal 2025 [182]. - Total operating expenses for the three months ended September 27, 2025, were $136.3 million, a 0.4% increase compared to the same period in fiscal 2025 [157]. - Research and development expenses rose by 5.2% for the three months and 8.9% for the six months ended September 27, 2025, compared to the same periods of fiscal 2025 [158]. - Selling, general and administrative expenses decreased by 5.0% for the three months and 1.3% for the six months ended September 27, 2025, compared to the same periods of fiscal 2025 [159]. Tax and Impairment - The effective tax rate for the three and six months ended September 27, 2025, was 24.6%, with income tax expenses of $12.6 million and $23.7 million, respectively [165]. - Impairment charges of intangible assets were $8.6 million for both the three and six months ended September 27, 2025, compared to $2.4 million in the same periods of fiscal 2025 [162]. Liquidity and Financial Position - As of September 27, 2025, cash and cash equivalents totaled $296.4 million, with a current ratio of 1.6 [168]. - The net debt position as of September 27, 2025, was $(928.3) million, indicating a strong liquidity position [168]. - The company had $19.5 million of uncommitted operating lines of credit with no outstanding borrowings as of September 27, 2025 [174]. Foreign Sales and Currency Impact - International sales accounted for 26.6% and 25.6% of total net revenues for the three and six months ended September 27, 2025, respectively [147]. - The company’s foreign sales accounted for 26.6% and 25.9% of total sales for the three and six months ended September 27, 2025, respectively [190]. - A 10% strengthening of the U.S. Dollar would result in a $9.8 million increase in the fair value of forward contracts, while a 10% weakening would lead to an $11.9 million decrease [193]. - A 100 basis point increase in Term SOFR rates would lead to an additional annual interest expense of $0.4 million [194]. - The notional amount on two active interest rate swap agreements to convert variable rate borrowings to fixed rate was $201.9 million [194]. Credit Risk and Investments - Concentration of credit risk exists in the Plasma business unit due to significant sales to a few large customers [195]. - Trade accounts receivable outside the U.S. include sales to government-owned healthcare systems, which are subject to payment delays [195]. - The company has not incurred significant losses on trade accounts or other receivables, but potential collection risks are continually evaluated [196]. - Allowances may be required in future periods if the financial condition of customers deteriorates [196]. - The company’s investments in privately held entities are periodically evaluated for impairment, with a risk of losing a substantial portion of these investments [197]. - Strategic investments in privately held entities total $88.6 million, classified as other long-term assets [197]. - No adjustments were recorded to the carrying value of strategic investments for the three months ended September 27, 2025 [197].

Revenue Performance - Second quarter fiscal 2026 revenue was $327.3 million, a decrease of 5.3% compared to the same period in fiscal 2025[2] - Organic revenue declined 1.8%, while organic ex-CSL revenue increased by 9.4% year-over-year[4] - Net revenues for the three months ended September 27, 2025, were $327.3 million, a decrease of 5.3% compared to $345.5 million for the same period in 2024[23] - Plasma revenue decreased by 9.5% to $125.4 million for the three months ended September 27, 2025, while organic growth excluding CSL was down 10.1%[25] Earnings and Profitability - Adjusted earnings per diluted share rose to $1.27, up 13.4% compared to the second quarter of fiscal 2025[7] - Adjusted operating income for the second quarter was $87.3 million, reflecting a 4.5% increase compared to the prior year[5] - Net income for the three months ended September 27, 2025, was $38.7 million, reflecting a 14.3% increase from $33.8 million in the prior year[23] - Gross profit increased by 3.9% to $194.7 million for the three months ended September 27, 2025, compared to $187.4 million in the prior year[23] - Adjusted net income for the three months ended September 27, 2025, was $19,769, resulting in an adjusted diluted earnings per share of $1.27[31] Cash Flow and Financial Position - Cash flow from operating activities was $111.3 million, an increase of 128.0% year-over-year, while free cash flow reached $88.7 million, up 139.6%[9] - Cash on hand as of September 27, 2025, was $296.4 million, a decrease of $10.3 million since the end of fiscal 2025[8] - Total current assets decreased to $899.7 million as of September 27, 2025, from $934.9 million as of March 29, 2025[27] - The company’s cash and cash equivalents were $296.4 million as of September 27, 2025, down from $306.8 million[27] - Net cash provided by operating activities increased significantly to $128,716 from $21,402 year-over-year[30] - Free cash flow for the six months ended September 27, 2025, was $91,214, up from $20,110 in the prior year[30] Guidance and Projections - The company updated its fiscal 2026 guidance, projecting total revenue growth of -1% to 4%[11] - The adjusted operating margin guidance remains at 26% to 27%, with adjusted earnings per diluted share guidance raised to $4.80 to $5.00[11] Operating Expenses and Investments - Research and development expenses increased by 5.2% to $14.9 million for the three months ended September 27, 2025, compared to $14.1 million in the prior year[23] - Operating expenses for the three months ended September 27, 2025, were $136,253, compared to $135,740 for the same period in 2024, showing a marginal increase[31] - Operating expenses for the six months ended September 27, 2025, were $274,625,000, slightly down from $270,908,000 in the same period of FY25, showing a decrease of 1.0%[32] - The company incurred $10,409,000 in digital transformation costs during the six months ended September 27, 2025[32] - Integration and transaction costs amounted to $4,202,000 for the six months ended September 27, 2025, compared to $13,205,000 in the same period of FY25, indicating a significant reduction[32] Debt and Assets - Long-term debt remained stable at $920.4 million as of September 27, 2025, compared to $921.2 million in the previous period[27] - The cash and cash equivalents at the end of the period were $296,426, slightly down from $299,283 at the end of the same period in 2024[30] Profit Margins - The gross margin improved to 60.5%, up 380 basis points from the previous year, driven by pricing benefits and Plasma share gains[4] - The company reported a gross profit margin of 59.5% for the three months ended September 27, 2025, compared to 54.2% in the same period last year[23] - The adjusted gross profit margin for the six months ended September 27, 2025, was 60.6%, compared to 56.0% for the same period in FY25, reflecting an improvement of 4.6 percentage points[32]