Haemonetics 1Q Revenue Drops on Poor Plasma Growth Rates

FOXBusiness

Haemonetics Corp. (NYSE:HAE) reported Monday a drop in its first-quarter net income, attributed primarily to hindered revenues caused by headwinds in plasma growth rates.

The blood management provider said it achieved net income of $17.9 million, or 70 cents a share, down 1% from $18 million, or 69 cents a share, in the same quarter last year.

Continue Reading Below

Excluding special items, the Braintree, Mass.-based company reported earnings of 74 cents a share, up from average analyst estimates of 72 cents, according to a Thomson Reuters poll.

Net revenue for the healthcare company was $163 million, up 6% from $154 million last year, and falling short of the Street’s view of $167.91 million.

Haemonetics CEO Brian Concannon said the company is off to a “solid start,” as it posted top and bottom line growth while dealing with headwinds in plasma growth rates and currency.

“As currency headwinds moderate and Plasma accelerates we will see favorable trends in the last three quarters that give us confidence about achieving our commitments for the year,” he said.

Last quarter the company signed an agreement with Consorta, a group purchasing organization, which allows the blood manager to use Consorta’s IMPACT Online portal to target specific members of its network.

“We have made excellent progress against our goals for blood management with 90 IMPACT accounts by the end of the first quarter and more recently the signing of a system wide agreement for blood management with Consorta,” Concannon said. “Our value proposition is taking hold in the markets we serve and represents a strong catalyst for growth this fiscal year.”

Given the boost in confidence amid the Consorta deal, the company reaffirmed its full-year outlook of $3.15 to $3.25 a share.

What do you think?

Click the button below to comment on this article.