Haemonetics Raises Revenue Outlook as Organic Growth Accelerates
Operating cash flow climbed to $52.3 million from $17.4 million a year earlier.
Haemonetics (HAE), the blood- and plasma-technology company, raised its full-year revenue outlook after fiscal first-quarter sales increased 5.6% year over year, with growth strengthening from the preceding quarter.
Organic revenue growth accelerated to 5.9% from 4.5% in the fiscal fourth quarter, extending a recovery from a 1.8% decline two quarters earlier. Haemonetics also began reporting under two segments, combining Plasma and Blood Center into Apheresis and renaming Hospital as MedSurg.
Revenue rose to $339.4 million from a year earlier and declined 2.0% sequentially. GAAP diluted earnings increased 2.9% to $0.72 a share, while adjusted earnings rose 3.6% to $1.14 a share.
Apheresis revenue increased 5.3% to $191.3 million as Plasma grew 8.2% organically, up from 1.8% growth in the fourth quarter. MedSurg revenue rose 6.0% to $148.1 million, led by Blood Management Technologies, while Interventional Technologies returned to growth with a 2.8% organic increase.
GAAP gross margin recovered sequentially to 59.8% from 57.2%, when acquisition-related inventory and purchase-commitment charges weighed on the fourth quarter. Adjusted operating margin fell 70 basis points from a year earlier to 23.4% as higher personnel and freight costs helped lift adjusted operating expenses 6.7%.
Haemonetics now expects fiscal 2027 reported revenue growth of 5% to 8%, one percentage point higher at each end of its previous range, and organic growth of 4% to 7%. The company maintained its forecast for 50 to 100 basis points of adjusted operating-margin expansion and raised its Apheresis organic-growth expectation to a low- to mid-single-digit rate.
Free cash flow increased to $39.1 million from about $2.5 million a year earlier, helped mainly by the timing of receivables collections. Both free cash flow and operating cash flow remained below their fiscal fourth-quarter levels, while the company continues to target roughly 80% free-cash-flow conversion for the year.