Haemonetics Q2 revenue and adjusted EPS beat expectations

Overview

• US medical technology firm's fiscal Q2 revenue beat analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

Outlook

• Haemonetics raises FY27 reported revenue growth guidance to 8-11% from 5-8%

• Company raises FY27 organic revenue growth guidance to 6-9% from 4-7%

• Haemonetics lowers FY27 adjusted operating-margin expansion guidance to 0-50 bps from 50-100 bps

• Company lifts FY27 free-cash-flow conversion guidance to more than 80% from about 80%

Result Drivers

• GROSS-MARGIN EXPANSION – Tariff refunds, a higher-margin product mix and no fair-value inventory step-up lifted gross margin

• PERSONNEL AND FREIGHT COSTS – Higher personnel-related costs and freight charges raised operating expenses

• WORKING-CAPITAL TIMING – Favorable payment and collection timing increased operating cash flow; higher capital spending weighed on free cash flow

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for Haemonetics Corp is $140.00, about 9.9% above its November 4 closing price of $127.42

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• Nov 4 - Zimmer Biomet Q3 sales beat estimates, raises FY outlook

• Nov 4 - Procept Biorobotics Q3 revenue, adjusted EBITDA miss estimates

• Nov 4 - Edwards Lifesciences Q3 sales beat on TMTT portfolio adoption

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)