Is it Apt to Retain Haemonetics Stock in Your Portfolio Now?

Haemonetics Corporation’s HAE impressive Hospital business recovery is poised to drive growth in the upcoming quarters. The robust uptake of the NexSys PCS system bodes well for its long-term growth. However, a dull macroeconomic scenario and unfavorable foreign exchange remain concerns for HAE’s operations. 

In the past year, this Zacks Rank #3 (Hold) company’s shares have gained 2.6% compared with the industry and the S&P 500 composite’s growth of 2.2% and 16%, respectively.

The global provider of blood and plasma supplies and services has a market capitalization of $4.08 billion. HAE beat on earnings in three of the trailing four quarters and matched once, delivering an average surprise of 6%.

Let us delve deeper.

Haemonetics’ Key Upsides

NexSys PCS System Continues to Thrive: Haemonetics’ FDA-cleared NexSys PCS (plasma collection system) is developed to enable higher plasma yield collections, improve productivity in customers’ centers, enhance the overall donor experience, and provide safe and reliable collections that will become life-changing medicines for patients. The bi-directionally connected NexSys PCS with NexLynk DMS delivers a 16-minute reduction in donor door-to-door time, on average. The new, proprietary Persona Technology strengthens the NexSys PCS value proposition and reinforces the company’s commitment to supporting its Plasma customers. The rollout of Persona, its proprietary technology proven to increase yield by 9% to 12% on average, continues to gain momentum with more than 40 million collections. 

Hospital Business Recovery Continues: The Hospital business remains well-positioned to maintain its strong growth, supported by dynamic market conditions. It is focused on accelerating the products’ adoption, expanding the reach and capitalizing on scale to unlock new opportunities and achieve operating leverage.

In the fiscal second quarter, the Hospital business achieved a 5% increase in revenues. Blood Management Technologies witnessed strong momentum with 12% sales growth, reflecting sustained strength in hemostasis management. The Vascular Closure business also contributed to the growth, driven primarily by its VASCADE MVP and VASCADE MVP XL devices. Additionally, in October, the company reinforced its global leadership in viscoelastic testing by launching the heparinase neutralization (HN) cartridge in EMEA and Japan.

Concerns for HAE 

Weak Solvency: Haemonetics exited the fiscal second quarter with cash and cash equivalents of $296 million, and near-term payable debt of $304 million on its balance sheet. Meanwhile, the long-term debt at the end of the fiscal second quarter was $920 million. This resulted in a debt-to-capital ratio of 52%. The current ratio was 1.64% in the fiscal second quarter.

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Foreign Exchange Translation Impacts Sales: Nearly 26.6% of the company’s fiscal second-quarter sales were generated outside the United States. International sales are primarily conducted in local currencies, due to which Haemonetics’ operational results are impacted by changes in foreign exchange rates. Moreover, a stronger dollar, causing significant currency fluctuations, has been affecting the company’s outcome over the past few quarters, and no respite is expected in the near term. 

HAE’s Estimate Trend

The Zacks Consensus Estimate for fiscal 2026 earnings has moved north 1.2% to $4.93 per share in the past 30 days.

The consensus estimate for fiscal 2026 revenues is pegged at $1.32 billion, which indicates a 3.2% increase from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are BrightSpring Health Services BTSG, Illumina ILMN and Phibro Animal Health PAHC.

Estimates for BrightSpring Health Services’ 2025 EPS have increased 5.7% in the past 30 days. Shares of the company have surged 92.3% in the past year compared with the industry’s 1.1% growth. BTSG’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 45.1%. 

BTSG sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Illumina, carrying a Zacks Rank #1 at present, has lost 8.6% over the past year. Estimates for the company’s 2025 EPS have increased 0.9% to $4.71 in the past 30 days. ILMN’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, delivering an average surprise of 6.7%. 

Phibro, carrying a Zacks Rank #1 at present, has gained 66.4% over the past year. Estimates for the company’s fiscal 2026 EPS have increased 5 cents to $2.76 in the past 30 days. PAHC’s earnings topped estimates in each of the trailing four quarters, delivering an average surprise of 20.8%. 

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This article originally published on Zacks Investment Research (zacks.com).

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