Revenue guidance for fiscal 2019
In fiscal 2019, Haemonetics (HAE) expects to report year-over-year (or YoY) organic revenue growth in the range of 3% to 5% on a constant currency basis. For fiscal 2018, the company reported YoY organic revenue growth of around 1.8%, which was in line with its guidance.
In the fourth quarter of fiscal 2018 and full-year fiscal 2018, Haemonetics witnessed YoY organic revenue growth of around 0.8% and 1.8%, respectively. Although this performance was in line with the guidance provided by the company for fiscal 2018, the margin performance was partly affected by the increased research and development (or R&D), hospital commercialization, and labor expenses owing to a discretionary bonus paid to hourly employees of the company. Additionally, in fiscal 2018, Haemonetics also witnessed certain operational challenges that reduced productivity as well as inventory held by the company, which in turn led to some degree of equipment obsolescence.
Revenue estimates for 2018
Wall Street analysts expect Haemonetics to report revenues close to $944 million in fiscal 2019, which would be a year-over-year rise of around 4.5%. The plasma business has continued to exceed Haemonetics’s expectations in fiscal 2018. While the performance of the blood center business was in line with expectations, the performance of the hospital business was mixed due to a solid performance in North America markets partly offset by a weak performance in international markets in fiscal 2018.
In April 2018, the U.S. Food and Drug Administration (or FDA) recalled Haemonetics’s Acrodose Plus and PL Systems devices, citing reports of low pH readings for platelets stored in the CLX HP bag as well as yellowish discoloration of certain bags in certain systems. The lower PH platelets are associated with increased morbidity and mortality risk in transfusion patients.
In the next article, we’ll discuss earnings and margin growth prospects for Haemonetics in fiscal 2019 in greater detail.