HAE Stock Gains on Q1 Earnings & Revenue Beat, Fiscal '27 View Up

Revenues increased 5.6% year over year to $339.4 million and beat the Zacks Consensus Estimate by 3.5%. Organic revenues rose 5.9%, with Plasma delivering particularly strong 8.2% organic growth.

Following the earnings announcement, HAE’s shares rose 0.4% last Friday. 

HAE’s Apheresis Business Builds Momentum

Apheresis revenues totaled $191.3 million, up 5.3% on a reported basis and 6.0% organically. Plasma revenues increased 7.2% to $155.5 million, while organic growth reached 8.2%, supported by share gains, strong collection trends and the Persona PLUS rollout.

Management said U.S. customer collections rose in the high-single to low-double digits. Persona PLUS adoption was ahead of schedule, with early adopters achieving yield improvements of more than 5% versus earlier Persona offerings. Other Apheresis revenues declined 2.4% to $35.8 million, reflecting portfolio optimization and order timing.

Haemonetics’ MedSurg Growth Broadens

MedSurg revenues rose 6.0% to $148.1 million, with organic growth of 5.9%. Blood Management Technologies revenues advanced 8.6% to $88.1 million and 8.1% organically, benefiting from double-digit growth in Hemostasis and Transfusion Management, partly offset by slower Cell Salvage capital upgrades.

Interventional Technologies revenues increased 2.5% to $59.9 million and 2.8% organically. Vascular Closure grew in the low double digits, aided by improving procedure trends, stronger commercial execution and broader use of the VASCADE MVP XL system. Management also cited growing adoption across large-bore venous closure procedures.

HAE’s Margin Analysis

In the first quarter of fiscal 2027, gross profit increased 5.5% year over year to $202.8 million. Gross margin remained flat at 59.8% as cost of goods sold rose 5.8% to $136.6 million.

Selling, general and administrative expenses increased 7.4% to $118.9 million, while research and development expenses declined 0.4% to $16.2 million. Total operating expenses rose 5.0% to $145.3 million. Operating income increased 6.7% to $57.5 million from $53.9 million in the prior-year quarter, while operating margin expanded 10 basis points to 16.9%.

Haemonetics Strengthens Cash Generation

Cash flow from operating activities reached $52.3 million, up $34.9 million from the prior-year quarter’s level. Free cash flow climbed to $39.1 million from $2.5 million, aided by favorable working-capital movements and lower non-cash equipment transfers, partly offset by higher capital expenditures.

Haemonetics ended the quarter with $223.4 million in cash and cash equivalents and total debt of about $1.17 billion. During the quarter, the company repaid $50 million on its revolving credit facility and repaid another $50 million after quarter-end, reducing the outstanding revolver balance to $200 million.

HAE Raises Fiscal 2027 Revenue Outlook

Management raised fiscal 2027 reported revenue growth guidance to 5-8% from 4-7%. Organic revenue growth is now projected to be 4-7%, up from the prior 3-6% guidance, while the expected impact from the 53rd week remains roughly 2%. The Zacks Consensus Estimate for fiscal 2027 revenues is pegged at $1.41 billion.

Adjusted earnings per share are expected to grow in line with revenues. The Zacks Consensus Estimate is pegged at $5.28.

Our Take

Haemonetics ended the fiscal first quarter with both earnings and revenues surpassing estimates. Broad-based growth across the company’s core platforms supported the quarterly performance. HAE’s operating margin expansion looks encouraging. 

With a strengthened competitive position and focus on disciplined execution, it has momentum for fiscal 2027 and beyond. Additionally, the raised full-year guidance bodes well for the company. 

HAE’s Zacks Rank & Key Picks 

Haemonetics currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Quest Diagnostics DGX and Medpace MEDP.

Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.80, which surpassed the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion beat the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ISRG has an earnings yield of 3.1% compared to the industry’s negative 3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 16.53%.

Quest Diagnostics, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $3.12, which outpaced the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion topped the Zacks Consensus Estimate by 2.1%.

DGX has an earnings yield of 4.7%, almost in line with the industry’s yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.77%.

Medpace, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $4.25, which beat the Zacks Consensus Estimate by 4.17%. Revenues of $707.3 million outperformed the consensus mark by 1.12%.

MEDP has a historical five-year earnings growth rate of 30.5% compared with the industry’s 5.6% growth. In the trailing four quarters, the company delivered an average earnings beat of 10.16%.

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This article originally published on Zacks Investment Research (zacks.com).

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