Haemonetics Q2 beats street on EPS, misses rev

Haemonetics (NYSE:HAE) today reported 2nd quarter earnings that beat the street on earnings and narrowly missed revenue expectations, with shares slumping slightly in response.

Haemonetics reported profits of $12.9 million, or 25¢ per share, on sales of $220 million for the 3 months ended September 26.

That amounts to a significant 71.8% bottom line gain on sales that shrunk 3.5% compared with the same period last year.

Adjusted to exclude 1-time items, earnings per share were 44¢. That tops what analysts on Wall Street were expecting by 5¢, while revenue narrowly slid in below expectations of $221.5 million.

Haemonetics shares have dropped a minimal 1.7% to $33.49 in mid day trading as of 11:51 a.m. EST.

“Our team delivered 1st half revenue and earnings performance that was in line with our expectations. It is encouraging that our Plasma and TEG hemostasis management businesses continued to have solid revenue growth in the first half of fiscal 2016. Sustaining profitable growth is a key enabler of solid overall financial performance and there are ample opportunities for Haemonetics to continue to realize differentiated growth in its growth drivers over the medium and long terms. By channeling the necessary resources and investments into our Plasma and TEG hemostasis management franchises, as well as the key China market, we are creating the necessary focus to deliver and sustain real organic growth,” interim CEO Ronald Gelbman said in a press release.

The company reaffirmed guidance it set out last month, after revealing the departure of CEO Brian Concannon. The company 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 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.

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