Haemonetics Earnings Preview

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Haemonetics (NYS: HAE) came in under analyst's estimates last quarter, but now have a chance to fix things this quarter. The company will unveil its latest earnings on Monday, Oct. 31. Haemonetics is a medical device company which develops and manufactures automated blood component collection devices and surgical blood salvage devices. Its customers are blood and plasma collectors, hospitals, and hospital service providers.

What analysts say:

  • Buy, sell, or hold?: Analysts are bullish on Haemonetics as four analysts rate it as a buy and only one analyst rates it as a sell. Analysts like Haemonetics better than competitor C.R. Bard overall. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $173.6 million in revenue this quarter. That would represent a rise of 4% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.77 per share. Estimates range from $0.73 to $0.85.

What our community says:
CAPS All-Stars are solidly behind the stock with 100% awarding it an "outperform" rating. The community at large agrees with the All-Stars with 97.6% granting it a rating of "outperform." Fools are bullish on Haemonetics, though the message boards have been quiet lately with only 45 posts in the past 30 days. Haemonetics has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Haemonetics' profit has risen year over year by an average of more than twofold over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters. 

QuarterQ1Q4Q3Q2
Gross Margin52.0%51.5%52.9%52.6%
Operating Margin14.0%17.0%16.2%17.3%
Net Margin9.9%12.3%11.2%12.8%
One final thing: If you want to keep tabs on Haemonetics movements, and for more analysis on the company, make sure you add it to your Watchlist.

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