Haemonetics slumps on lowered outlook

A week after revealing the departure of CEO Brian Concannon, Haemonetics (NYSE:HAE) yesterday lowered its outlook for fiscal 2016, saying it expects lower revenues from Russia and Japan and the slow uptake on its HaemoCloud software during the 2nd half of the year.

Braintree, Mass.-based Haemonetics, which is slated to release its fiscal 2nd-quarter results Nov. 4, said it expects to post sales of $220 million and adjusted earnings per share of 40¢ for the 3 months ended Sept. 26.

That means full-year sales of $910 million to $920 million, or flat to 1% growth, compared with prior guidance for growth of 4% to 6%. Adjusted EPS are now forecast to come in at $1.65 to $1.75 per share, down from prior guidance for $1.98 to $2.08.

Haemonetics cited “continuing deterioration” in the Russian market and “challenges in the pace of implementation of a contracted market share gain” in Japan for the expected 2nd-half slump. The company also said a “re-assessment of the timeline for penetration” of the HaemoCloud software it debuted in August contributed to its lowered outlook.

HAE shares were down -4.7% to $31.82 apiece today in mid-day trading on the news, recovering somewhat from having shed some -12.2% in after-hours activity yesterday, when the stock hit $29.31 per share.

Concannon stepped down Sept. 29 to pursue “other opportunities” after 6 years at Haemonetics, replaced on an interim basis by board member Ronald Gelbman.

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