Here's Why You Should Buy Haemonetics (HAE) Stock Now

Core Viewpoint - Haemonetics is positioned for growth due to the strong potential of its Plasma franchise and evolving hospital portfolio, despite facing economic uncertainties and foreign exchange challenges [1][11]. Financial Performance - The stock has increased by 11.7% over the past year, outperforming the industry, which fell by 1.3%, and the S&P 500, which rose by 26.7% [2]. - Haemonetics has a market capitalization of $4.84 billion and has consistently surpassed earnings estimates, achieving an average earnings surprise of 13.24% over the last four quarters [2]. Business Segments Plasma Franchise - The Plasma business unit focuses on collecting source plasma, with revenues growing by 6% in Q4 of fiscal 2024, driven by disposable volume and software [3]. - The collections environment in the U.S. remains favorable, with disposables growing by 4% in the quarter and 13% for fiscal 2024 [3]. - The rollout of the Express Plus technology has resulted in over 60,000 real-world collections, enhancing operational efficiency [3][4]. Hospital Business - Hospital revenues increased by 19% in Q4, supported by the success of Vascular Closure and hemostasis management [5]. - The Vascular Closure business is expanding due to new account openings in electrophysiology and interventional cardiology [5]. - The FDA's premarket approval for the VASSCADE MVPXL device and the ongoing international launch contributed approximately 300 basis points to revenue growth in Q4 [6]. Acquisitions and Innovations - In December 2023, Haemonetics acquired OpSens, enhancing its Hospital business with new technologies, generating nearly $10 million in revenues in Q4 [7]. - The launch of OptiWire and SavvyWire in April further supports the company's growth strategy [7]. Financial Stability - Haemonetics ended Q4 with cash and cash equivalents of $178.8 million and near-term payable debt of $10.2 million, indicating strong solvency [8]. - Long-term debt decreased to $797.6 million from $856.8 million in the previous quarter, with a total debt-to-capital ratio of 45.7%, down from 47.6% [10]. Challenges - Economic uncertainties, including inflation and rising interest rates, pose risks to Haemonetics' operations, leading to 700 basis points of margin pressure in Q4 [11]. - Foreign exchange fluctuations, particularly with the Japanese Yen and Euro, negatively impacted revenues due to international sales being conducted in local currencies [12]. Future Estimates - The Zacks Consensus Estimate for Haemonetics' fiscal 2025 earnings has increased to $4.46 from $4.24, with revenues projected at $1.40 billion, reflecting a 6.9% increase from the previous year [13].