Flat revenue performance
Haemonetics (HAE) expects to report fiscal 2018 revenue in line with what it witnessed in fiscal 2017. The company expects to report 5% YoY (year-over-year) growth in its plasma franchise’s revenue, which is at the higher end of its previously projected revenue growth rate range of 3%–5%.
The company also expects to witness 6% YoY revenue growth in its hospital business, lower than its previously projected revenue growth rate range of 7%–10%.
Haemonetics, however, expects its blood center business to report a 7% YoY fall in fiscal 2018 revenue, which is at the lower end of its expectation of a fall of 7%–10%.
Wall Street analysts expect Haemonetics’ fiscal 2018 revenue to be ~$898 million, a YoY rise of ~1.3%. Peers Zimmer Biomet (ZBH), Stryker (SYK), and Abbott Laboratories (ABT) are expected to report revenues of close to $8.0 billion, $13.5 billion, and $30.8 billion, respectively, in fiscal 2018.
Blood center revenue trends
While Haemonetics reported a 14% YoY fall in its blood center business’s revenue in fiscal 2017, the rate of YoY revenue decline for the business has moderated to ~5% in fiscal 3Q18 and fiscal 2018 on a YTD (year-to-date) basis. A significant portion of the fall in the segment’s revenue is also attributable to the company’s exit from unprofitable ventures in international markets in fiscal 2018.
The fiscal 2018 projections for Haemonetics’ blood center business imply a double-digit revenue fall for the company’s blood center revenue in fiscal 4Q18, which is expected to be mainly attributable to the exceptional revenue performance of the business in fiscal 4Q17.
However, while the rate of revenue decline for this business has been affected by certain customer ordering patterns in 4Q17, it’s expected to report flat revenue performance in fiscal 4Q18 in dollar terms compared to fiscals 2Q18 and 3Q18.
In the next article, we’ll discuss Haemonetics’s margin growth prospects in greater detail.