Core Insights - Haemonetics reported third-quarter revenue of $339 million, with a year-to-date revenue of $1.1 billion, reflecting a 1% decline in organic revenue for the quarter but a 2% increase year to date, driven by growth in Blood Management Technologies (BMT) and offset by declines in Interventional Technologies (IVT) [1][4][6] Financial Performance - Adjusted earnings per share (EPS) increased by 10% to $1.31 in the quarter and 11% year to date to $3.67, with full-year adjusted EPS guidance raised to $4.90 to $5.00 per share [2][5] - The company raised its fiscal 2026 revenue guidance to a decline of 1% to 3% (previously 1% to 4%) and increased organic revenue guidance excluding CSL to growth of 8% to 10% (previously 7% to 10%) [2][6] Segment Performance - BMT grew 8% in the quarter and 11% year to date, driven by strong sales in hemostasis management and the adoption of new products like the TEG 6s disposable and heparinase neutralization cartridge [7][11] - IVT revenue declined 12% in the quarter and 8% year to date, primarily due to weaknesses in esophageal cooling and OEM-related challenges [6][8] Cash Flow and Margins - The company generated $74 million in free cash flow for the quarter, with year-to-date free cash flow reaching $165 million, and raised full-year free cash flow guidance to $200 million to $220 million [16][17] - Adjusted gross margin was reported at 60.2% for the quarter, reflecting a 250 basis point improvement year over year, attributed to technology adoption and divestitures [14][15] Strategic Initiatives - Haemonetics acquired Vivasure for $61 million, enhancing its vascular closure portfolio and targeting a market estimated at $300 million [19] - The company emphasized ongoing share gains and pricing benefits from new technology rollouts, with collection volumes exceeding seasonal expectations [17]

Core Insights - Haemonetics Corporation (HAE) reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $1.31, reflecting a year-over-year increase of 10.1% and exceeding the Zacks Consensus Estimate by 3.1% [1][9] - The company's revenues decreased by 2.7% to $339 million, which still surpassed the Zacks Consensus Estimate by 1.4% [2][9] Revenue Breakdown - Plasma segment revenues reached $138.9 million, up 3.5% year over year, with organic growth of 2.8%, driven by strong demand for immunoglobulin [3] - Blood Center revenues fell 19.6% to $56.6 million, although organic growth was 2.8%, supported by international Plasma demand [4] - Hospital revenues slightly decreased by 0.3% to $143.5 million, with a 0.9% decline on an organic basis [4] Margin Performance - Gross profit increased by 4.6% to $202.4 million, with gross margin expanding by 418 basis points to 59.7% due to an 11.9% decline in the cost of sales [6] - Operating profit rose to $79 million, compared to $71.3 million in the prior year, with an operating margin increase of 287 basis points to 23.3% [7][9] Financial Position - At the end of the third quarter, Haemonetics had cash and cash equivalents of $363.4 million, up from $296.4 million at the end of the previous quarter [8] - Long-term debt remained stable at $920 million, and cumulative net cash flow from operating activities increased to $222.3 million from $65.2 million a year ago [8] Guidance - The company now expects fiscal 2026 GAAP revenues to decline by 1-3%, with organic revenue growth anticipated in the range of 0-2% compared to fiscal 2025 [10] - Adjusted EPS guidance for full-year 2026 is set between $4.90 and $5.00, up from the previous range of $4.80 to $5.00 [11] Overall Assessment - Haemonetics demonstrated better-than-expected results in the fiscal third quarter, with earnings and revenues surpassing estimates despite a year-over-year revenue decline [12] - The performance highlights the strength of the company's core businesses, particularly in Blood Management Technologies and Plasma, while targeted actions are planned to improve Interventional Technologies [12][13]

Financial Data and Key Metrics Changes - Third quarter revenue was $339 million, bringing year-to-date revenue to $988 million, with reported revenue reflecting a $153 million impact from last year's portfolio transitions [5][6] - Adjusted earnings per share increased 10% in the quarter to $1.31 and 11% year-to-date to $3.67, indicating strong earnings quality and durability [6][16] - Adjusted gross margin was 60.2% in the third quarter, up 250 basis points year-over-year, and 60.5% year-to-date, up 390 basis points [13][14] - Free cash flow for the third quarter was $74 million, bringing year-to-date free cash flow to $165 million, representing a more than threefold increase compared to the prior year [17][18] Business Line Data and Key Metrics Changes - Hospital revenue was $144 million in the third quarter, down 1% but up 2% year-to-date organically, with strong performance in Blood Management Technologies offsetting softness in Interventional Technologies [6][9] - Blood Management Technologies grew 8% in the quarter and 11% year-to-date, driven by strong sales of TEG 6s disposables and the heparinase neutralization cartridge [6][7] - Interventional Technology revenue declined 12% in the quarter and 8% year-to-date, primarily due to softness in esophageal cooling and OEM-related headwinds [8][9] - Plasma revenue was $139 million, up 3% on a reported basis, with organic growth of 20% in the quarter and 22% year-to-date, driven by share gains and collection volume [9][10] Market Data and Key Metrics Changes - U.S. plasma collections grew in the low double digits in the third quarter, with the company holding approximately 50% global market share [10] - Blood Center revenue was $57 million in the quarter, growing 3% in the quarter and 4% year-to-date organically, driven by international plasma demand [10][11] Company Strategy and Development Direction - The company is focused on returning the Interventional Technologies franchise to sustainable growth in fiscal 2027, with targeted actions underway to strengthen execution [20][21] - The acquisition of Vivasure is expected to enhance the company's leadership in vascular closure, with a $300 million addressable market identified [43][46] - Capital allocation priorities include investing in organic growth, meeting debt obligations, and opportunistically returning cash to shareholders while maintaining balance sheet flexibility [22][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the plasma business, highlighting strong share gains and favorable market conditions [25][27] - The company anticipates continued margin expansion, although future increments may be smaller than those seen in fiscal 2026 [30][31] - Management remains optimistic about the growth potential in the vascular closure market, particularly with the anticipated MVP XL label expansion [38][59] Other Important Information - The company raised its full-year revenue guidance to a decline of 1%-3%, reflecting improved performance across Plasma, Blood Center, and Blood Management Technologies [11] - Adjusted operating income increased 4% year-to-date to $254 million, with adjusted operating margin expanding 200 basis points to 25.7% [15] Q&A Session Summary Question: Insights on plasma growth and sustainability - Management highlighted strong share gains and collection volume growth, indicating a favorable outlook for plasma in fiscal 2027 [25][27] Question: Margin expectations and challenges in the hospital business - Management acknowledged a sequential decline in adjusted operating margin but expressed confidence in overall margin expansion moving forward [30][31] Question: Updates on the IVT business and competition - Management noted that a significant portion of the decline in IVT was due to specific market dynamics, but they are confident in their strategy to return to growth [36][38] Question: Details on the Vivasure acquisition and market positioning - Management emphasized the strategic importance of Vivasure in enhancing their vascular closure portfolio and outlined a measured approach to its market launch [43][46] Question: Sustainability of blood center growth - Management indicated that while the blood center business has shown positive growth, it is subject to order timing and market conditions [79]

Financial Data and Key Metrics Changes - Third quarter revenue was $339 million, bringing year-to-date revenue to $988 million, with reported revenue reflecting a $153 million impact from last year's portfolio transitions [5][6] - Adjusted earnings per share increased 10% in the quarter to $1.31 and 11% year-to-date to $3.67, indicating strong earnings quality and durability [6][16] - Adjusted gross margin was 60.2% in the third quarter, up 250 basis points year-over-year, and 60.5% year-to-date, up 390 basis points [13][14] - Free cash flow for the third quarter was $74 million, bringing year-to-date free cash flow to $165 million, representing a more than threefold increase compared to the prior year [18][19] Business Line Data and Key Metrics Changes - Hospital revenue was $144 million in the third quarter, down 1% but up 2% year-to-date organically, with blood management technologies growing 8% in the quarter [6][9] - Plasma revenue was $139 million, up 3% on a reported basis, with organic growth excluding CSL at 20% in the quarter [9][10] - Blood Center revenue was $57 million in the quarter, growing 3% and 4% year-to-date organically, driven by international plasma demand [10][11] Market Data and Key Metrics Changes - U.S. plasma collections grew in the low double digits in the third quarter, with the company holding approximately 50% global market share [10] - The vascular closure market is experiencing headwinds from increasing PFA adoption, which is affecting growth rates in the electrophysiology market [58][60] Company Strategy and Development Direction - The company is focused on returning the interventional technologies franchise to sustainable growth in fiscal 2027, with targeted actions underway to strengthen execution [20][21] - The acquisition of Vivisure is expected to enhance the company's position in vascular closure, with a market potential of approximately $300 million [44][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the plasma business, citing strong share gains and favorable market conditions [25][27] - The company anticipates continued margin expansion, although future increments may be smaller than those seen in fiscal 2026 [30][32] Other Important Information - The company raised its full-year revenue guidance, expecting a decline of 1%-3% from a previous range of 1%-4% [11] - Cash on hand at the end of the third quarter was $363 million, up 18% since the start of the fiscal year [19] Q&A Session Summary Question: Insights on plasma growth and sustainability - Management highlighted strong share gains and collection volume growth, indicating a favorable outlook for plasma in fiscal 2027 [25][27] Question: Margin outlook and hospital business challenges - Management acknowledged a sequential decline in adjusted operating margin but expressed optimism about stabilization in the hospital business [28][30] Question: IVT business recovery and competition - Management noted that a significant portion of the decline in IVT was due to specific product disruptions, but they are confident in returning to growth [36][38] Question: Vivisure acquisition details - Management emphasized the strategic importance of Vivisure and its potential to enhance the vascular closure portfolio [44][48] Question: Capital deployment strategy - Management outlined a disciplined approach to capital deployment, prioritizing organic growth and debt reduction while maintaining flexibility for future investments [47][48]

Financial Data and Key Metrics Changes - Third quarter revenue was $339 million, bringing year-to-date revenue to $988 million, with reported revenue reflecting a $153 million impact from last year's portfolio transitions [4][10] - Adjusted earnings per share increased 10% in the quarter to $1.31 and 11% year-to-date to $3.67, indicating strong earnings quality and durability [5][14] - Adjusted gross margin was 60.2% in the third quarter, up 250 basis points year-over-year, driven by the adoption of NexSys technology and divestiture of the Whole Blood business [11][12] - Free cash flow for the third quarter was $74 million, with year-to-date free cash flow reaching $165 million, representing a threefold increase compared to the prior year [15][16] Business Line Data and Key Metrics Changes - Hospital revenue was $144 million in the third quarter, down 1% but up 2% year-to-date organically, with blood management technologies growing 8% in the quarter [5][6] - Plasma revenue was $139 million, up 3% on a reported basis, with organic growth of 20% in the quarter, driven by share gains and collection volume [8][9] - Blood Center revenue was $57 million in the quarter, growing 3% organically, primarily due to international plasma demand [9][10] Market Data and Key Metrics Changes - U.S. plasma collections grew in the low double digits in the third quarter, with the company holding approximately 50% global market share [8][9] - The hospital business is expected to deliver reported and organic growth of approximately 4% at the low end of the prior 4%-7% range [7][10] Company Strategy and Development Direction - The company is focused on returning the Interventional Technologies franchise to sustainable growth in fiscal 2027, with targeted actions underway to strengthen this segment [18][19] - The Vivisure acquisition is expected to enhance the company's leadership in vascular closure, with a market opportunity estimated at $300 million [44][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the plasma business, highlighting strong relationships and a favorable market environment [24][26] - The company anticipates continued margin expansion and strong cash flow generation, with a focus on disciplined capital deployment [15][21] Other Important Information - Adjusted operating income increased 4% year-to-date to $254 million, with adjusted operating margin expanding 200 basis points to 25.7% [13][14] - The company raised its full-year revenue guidance to a decline of 1%-3%, reflecting improved performance across Plasma, Blood Center, and Blood Management Technologies [10][11] Q&A Session Summary Question: Can you provide insights on plasma collections and market growth? - Management indicated that share gains and collection volume are driving growth, with double-digit increases in both U.S. and international collections [24][25] Question: What are the expectations for margins moving forward? - Management expects smaller increments in margin improvements in the future, with ongoing focus on operational efficiency [29][30] Question: What is the status of the IVT business and competition? - Management noted that 70% of the decline in IVT was due to specific market disruptions, but they are confident in returning to growth with the right strategies in place [35][36] Question: Can you elaborate on the Vivisure acquisition and its market potential? - The acquisition is seen as a significant opportunity to enhance the company's position in vascular closure, with a focus on a stepwise approach to market entry [44][47] Question: How is the company addressing the challenges in the hospital business? - Management highlighted strong performance in blood management technologies and a focus on stabilizing the IVT segment as key to future growth [81][82]

Haemonetics (NYSE:HAE) FY Conference Summary Company Overview - Haemonetics is a global leader in plasma apheresis with a $1 billion addressable market growing at mid-single digits, providing durable EBITDA and attractive returns on invested capital [2][3] - The company is diversifying into MedSurg markets to reduce volatility and systemic risk associated with its core plasma business [3] Financial Performance - The company has achieved an 8% total revenue compound annual growth rate and a 13% organic revenue growth rate, excluding a major customer transition [5] - Operating income margin improved by 770 basis points, reaching 26.3% in the first half of the fiscal year [6][28] - Adjusted EPS is expected to compound at approximately 17% [6] - Free cash flow has more than doubled, reflecting the strength and optionality of the business [21] Strategic Initiatives - The company has focused on building high-quality, sustainable growth engines, emphasizing revenue, margin, and cash flow expansion [4] - A significant shift in revenue sources has occurred, with high-growth, high-margin businesses now representing 85% of total revenue, up from 30% in FY22 [6] - Haemonetics has exited or de-emphasized non-core assets to focus on scalable, therapeutically agnostic technologies [7] Core Product Platforms 1. **Plasma Apheresis** - The foundational earnings engine with over 50% market share in a $1 billion global market [8] - Strong end-market demand supported by a $30 billion global biopharmaceutical industry [8] - The company has a competitive advantage through superior technology and a bi-directionally integrated plasma collection platform [9][10] 2. **TEG (Viscoelastic Testing)** - The second-largest growth driver with a $400 million addressable market, growing in mid-single digits [11][12] - TEG has a 45% market share and is positioned to capture additional market opportunities through new product launches [12] 3. **Vascular Closure Technologies** - Represents a $2.5 billion total market opportunity, with a focus on electrophysiology [15] - The recent acquisition of Vivasure is expected to enhance the company's position in large bore closure markets, estimated at $300 million [18][30] Market Dynamics - The plasma business is experiencing a "trifecta" of growth through share gains, pricing premiums, and normalization of collections [40] - The company is well-positioned for continued growth, with no single customer representing more than 10% of total revenue [39] Capital Allocation Strategy - The company has deployed $1.3 billion in capital over four years, focusing on organic growth, M&A, and shareholder returns [22] - Priorities include organic investments, M&A (paused for now), and share buybacks, with $225 million returned to shareholders in the past year [44][45] Future Outlook - The company anticipates continued margin expansion and operational improvements, with a focus on leveraging its core platforms for growth [26][27] - The upcoming fiscal year (FY27) is expected to see normalized growth in plasma and further advancements in the MedSurg business [24][25] Conclusion - Haemonetics is positioned for sustainable growth through strategic diversification, strong financial performance, and a focus on core product platforms, with a clear roadmap for future value creation [20][23]

Core Insights - Haemonetics Corporation is identified as one of the most oversold healthcare stocks in 2025, focusing on blood and plasma management technologies to enhance healthcare efficiency through innovative medical devices [1] Group 1: Product Launch and Innovation - In 2025, Haemonetics launched the PerQseal Elite vascular closure system, which received European CE Mark approval. This device is fully bioresorbable and sutureless, designed for large-bore vascular access sites used in procedures like TAVR and EVAR [2] - The PerQseal Elite device deploys from inside the vessel, leaving no residual materials, thus restoring the vessel to its natural state and improving procedural control. This launch reflects a trend towards minimally invasive, bioresorbable devices that enhance patient outcomes and procedural efficiency [2] Group 2: Financial Performance - Haemonetics reported its first-quarter fiscal 2026 results on August 7, 2025, with an earnings per share (EPS) of $1.10, exceeding analyst estimates by $0.09. However, revenue declined by 4.4% year-over-year to $321.39 million [3] - Despite the revenue decline, the company demonstrated resilience in profitability and operational performance, indicating its capability to navigate challenging market conditions [3] Group 3: Leadership and Strategic Focus - In early 2025, Haemonetics made strategic leadership appointments, including Frank Chan as Executive Vice President and Chief Operating Officer, and Roy Galvin as Executive Vice President and Chief Commercial Officer. These appointments aim to strengthen operational excellence and expand commercial reach [4]