Can Haemonetics' (HAE) Surprise Revenue Beat Offset Sector Headwinds in the Long Run?

• Haemonetics recently reported strong quarterly results, with revenues exceeding analysts' expectations by 6.6% even as year-on-year revenue decreased by 4.4%.
• This performance stands out in the medical device sector, where most peers have seen positive earnings but experienced sector-wide post-earnings share price declines.
• We'll now explore how Haemonetics’ revenue outperformance versus consensus forecasts may shape its long-term investment outlook.

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Haemonetics Investment Narrative Recap

To own shares of Haemonetics, an investor must believe in the company's ability to deliver sustained growth from core products (NexSys, TEG, and VASCADE) and capitalize on innovation-driven share gains, despite increasing competition and U.S.-centric risks. The recent revenue beat, exceeding expectations by 6.6% even as year-over-year sales fell, provides encouragement, but does not materially shift the biggest short-term catalyst (ongoing adoption of advanced plasma collection systems) or address the chief risk (execution issues in Interventional Technologies, especially VASCADE recovery).

Of the recent company announcements, the June 2024 limited market release of the VASCADE MVP XL device stands out. This product launch is particularly relevant as VASCADE’s performance and wider adoption are central to both driving higher segment growth and mitigating business concentration risk, key factors influencing near-term revenue stability and future diversification.

In contrast, investors should be aware that ongoing challenges in VASCADE execution could still...

Read the full narrative on Haemonetics (it's free!)

Haemonetics' narrative projects $1.5 billion in revenue and $257.9 million in earnings by 2028. This requires 2.6% yearly revenue growth and a $94.6 million earnings increase from $163.3 million.

Uncover how Haemonetics' forecasts yield a $76.91 fair value, a 50% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community members value Haemonetics shares between US$70.70 and US$99.69. While improved plasma collection adoption remains the central catalyst, these differing views remind you that market expectations for core segment growth are far from unanimous.

Explore 3 other fair value estimates on Haemonetics - why the stock might be worth as much as 94% more than the current price!

Build Your Own Haemonetics Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Haemonetics research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Haemonetics research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Haemonetics' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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