- Haemonetics Corporation's (NYSE:HAE) analyst day later this month may include an update on its businesses, new products, margin outlook, and financial targets for FY24-FY26.
- Haemonetics' non-exclusive agreement with CSL was extended through 2023, and management expects at least $88M of Plasma sales to CSL in FY23. However, sales to CSL should decline to zero during FY24 as CSL transitions to Terumo's plasma collection system, resulting in a headwind to revenue growth.
- The analysts see Hemostasis Management and Vascular Closure Devices as the main hospital growth drivers.
- The analysts wrote that blood center revenue has been an underperformer for the company and has been consistently declining since FY18.
- Needham says that Haemonetics' Blood Center business will be a drag for the company as it is for profitability and cash flow rather than growth and reinvesting profits into its higher-growth businesses.
- The management expects an FY23 organic Blood Center decline of 4-7%.
- As per Needham, inflation may limit operating leverage in the next 6-12 months. It also expects Haemonetics to benefit from product mix as higher-margin products and outpace lower-margin products.
- Price Action: HAE shares are down 0.16% at $62.29 during the market session on the last check Wednesday.
