Executive Summary
Haemonetics Corporation reported a strong financial performance for the second quarter of fiscal 2025 with revenues reaching $346 million, a 9% increase year-over-year, and an adjusted EPS of $1.12, up 13% compared to the prior year. This performance was predominantly driven by significant growth in the hospital segment, particularly through enhanced offerings in blood management technologies, which saw a 31% revenue increase. The company is navigating the transition challenges associated with its key customer, CSL, impacting plasma revenues, but remains optimistic about market positioning and ongoing share gains in a competitive environment.
Management is raising its organic growth guidance due to positive momentum in the hospital business, while closely managing expenses and optimizing operations to ensure sustained profitability. The overall sentiment reflects confidence in achieving long-term strategic goals despite near-term market fluctuations.
Key Performance Indicators
QoQ: -11.84% | YoY:35.82%
QoQ: -12.00% | YoY:34.69%
Key Insights
1. Total Revenue: $346 million, an increase of 9% YoY
2. Adjusted EPS: $1.12, a 13% increase YoY
3. Gross Profit Margin: 56.7%, up 270 bps YoY
4. Operating Income: $83.5 million, representing 24.2% of revenue
5. Net Income: $33.83 million
6. Cash Flow from Operations: $21.4 million, decreased from $118 million YoY
7. Free Cash Flow: $20.4 million, down from $84.8 million YoY.
Management forecasts total revenue growth for fiscal 2025 to be within the range of 5% to 8% while organic growth is gui...
Financial Highlights
1. Total Revenue: $346 million, an increase of 9% YoY
2. Adjusted EPS: $1.12, a 13% increase YoY
3. Gross Profit Margin: 56.7%, up 270 bps YoY
4. Operating Income: $83.5 million, representing 24.2% of revenue
5. Net Income: $33.83 million
6. Cash Flow from Operations: $21.4 million, decreased from $118 million YoY
7. Free Cash Flow: $20.4 million, down from $84.8 million YoY.
Management forecasts total revenue growth for fiscal 2025 to be within the range of 5% to 8% while organic growth is guided to be between 1% and 4%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
345.51M |
8.59% |
2.78% |
| Gross Profit |
187.44M |
9.93% |
7.15% |
| Operating Income |
51.70M |
46.44% |
30.04% |
| Net Income |
33.83M |
35.82% |
-11.84% |
| EPS |
0.66 |
34.69% |
-12.00% |
Key Financial Ratios
operatingProfitMargin
15%
operatingCashFlowPerShare
$0.96
freeCashFlowPerShare
$0.77
Management Commentary
- Revenue Growth: 'Today, we reported second quarter revenue of $346 million, growth of 9% on a reported basis and 4% organically... driven by our hospital business.' - Chris Simon, CEO
- Future Guidance: 'We are raising our organic revenue growth guidance to a range of 14% to 17% up from the previous 13% to 16%' - Chris Simon, CEO.
- Market Positioning: 'We continue to set the standard in plasma collection... while we rapidly expand our presence and successfully address emerging industry trends in attractive hospital markets.' - Chris Simon, CEO
- Profit Margins: 'In the second quarter, adjusted gross margin reached 56.7%, up 270 basis points from the second quarter fiscal 2024.' - James D'Arecca, CFO.
'Our growth and record financial performance speak to our agility and our progress executing our long-range plan.' - Chris Simon, CEO
â Chris Simon
'We have meaningful market opportunities and expect growth to accelerate driven by the launches of MVP XL, the TEG 6 heparinase neutralization cartridge, Enzo ETM and our sensor-guided technologies.' - Chris Simon, CEO
â Chris Simon
Forward Guidance
Management has expressed confidence in achieving a total revenue growth expectation in the range of 5% to 8% for fiscal 2025, while organic growth expectations have been improved to between 1% and 4%. Positive indicators arise from the hospital segment's robust performance and ongoing product advancements in interventional technologies. Key factors such as continued expansion of hospital products, increased utilization of new technologies, and optimizing operations for plasma collection will be essential for maintaining growth. Investors should monitor CSL's transition closely, which is projected to positively impact revenues moving into the next fiscal year.