Latest news with #NexSys
Yahoo
3 days ago
- Business
- Yahoo
HAE Q1 Earnings Call: Revenue Misses Expectations, Margin Expansion and Product Focus Highlighted
Blood products company Haemonetics (NYSE:HAE). fell short of the market's revenue expectations in Q1 CY2025, with sales falling 3.7% year on year to $330.6 million. Its non-GAAP EPS of $1.24 per share was 1.6% above analysts' consensus estimates. Is now the time to buy HAE? Find out in our full research report (it's free). Revenue: $330.6 million (3.7% year-on-year decline) Adjusted EPS: $1.24 vs analyst estimates of $1.22 (1.6% beat) Adjusted EPS guidance for the upcoming financial year 2026 is $4.85 at the midpoint, missing analyst estimates by 1.2% Operating Margin: 21.6%, up from 8.7% in the same quarter last year Organic Revenue was flat year on year (10.2% in the same quarter last year) Market Capitalization: $3.35 billion Haemonetics reported first quarter results marked by revenue declines, but management emphasized the impact of its evolving product portfolio and operational changes. CEO Chris Simon attributed performance to strong growth in the Hospital segment, led by technologies such as TEG and VASCADE, and highlighted the successful divestiture of the Whole Blood business. He noted that expanded adoption of next-generation products, particularly in Plasma technology, contributed to margin improvement. Simon also referenced the company's ongoing focus on higher-margin product categories and operational discipline as factors that contributed to the quarter's profitability, stating, 'Our industry-leading NexSys, TEG and VASCADE technologies continue to propel our growth in attractive markets.' Looking forward, Haemonetics' guidance reflects a cautious outlook as the company anticipates ongoing headwinds from portfolio transitions and external market factors. Management expects organic growth to be driven mainly by increased utilization and share gains in Plasma and Hospital technologies, while acknowledging a potential rebound in collection volumes later in the year. CFO James D'Arecca warned that reported revenue is expected to decline due to the completed Whole Blood divestiture and continued impacts from the CSL contract transition, but emphasized that gross margin expansion and disciplined cost management should support profitability. D'Arecca stated, 'We expect adjusted operating margin to improve by 200 to 300 basis points... supported by continued gains in adjusted gross margin.' Management traced the quarter's performance to a mix of product portfolio shifts, margin expansion, and strategic focus on high-growth segments, while also pointing to contract transitions and market-specific headwinds. Hospital segment momentum: Growth was led by Hospital products, including Blood Management Technologies and Interventional Technologies, with double-digit increases in both franchises. The TEG viscoelastic testing platform saw accelerated adoption, particularly with the launch of the HN cartridge, driving new account openings and transitions from older models. Vascular Closure advances: The VASCADE MVP and MVP XL devices in the Interventional Technologies franchise delivered over 25% growth due to new account openings and increased U.S. and Japanese utilization. However, legacy VASCADE products for coronary and peripheral procedures saw slower growth, which management aims to address through focused sales efforts. Plasma technology adoption: Plasma revenue was buoyed by the adoption of next-generation technologies like Persona and Express Plus, resulting in share gains and increased margins. Management highlighted new multi-year agreements with major collectors, which are expected to continue contributing to growth. Portfolio transformation and divestitures: The completed divestiture of the Whole Blood business enabled resource reallocation to higher-growth, higher-margin areas. This shift contributed to the significant improvement in overall operating margins and supported disciplined capital allocation, including share repurchases. Leadership and organizational changes: The promotions of Roy Galvin to Chief Commercial Officer and Frank Chan to Chief Operating Officer were cited as key steps to strengthen commercial execution and operations, particularly in supporting the Hospital business's long-term growth plans. Haemonetics expects near-term revenue to be shaped by portfolio transitions, while focusing on margin gains and product adoption to drive future growth and profitability. Product utilization and share gains: Management anticipates that growth will be led by increased utilization of existing devices, especially in Plasma and Vascular Closure, supported by recent extended contracts with major plasma collectors. New hospital product launches and technology conversions are expected to offset headwinds in legacy product lines. Margin expansion and cost discipline: The company projects further improvement in operating margins through portfolio mix shifts towards higher-margin products and ongoing cost control measures. Approximately $30 million in savings are expected over the next two years through regional alignment and operational efficiencies. External risks and market headwinds: Haemonetics identified tariff exposure, timing of contract transitions, and softness in the Chinese market as areas of uncertainty. While management expects U.S. and European momentum to offset challenges, external factors could impact both revenue progression and profitability in the coming quarters. In the next few quarters, the StockStory team will monitor (1) the pace of technology adoption and utilization in the Plasma and Hospital segments, (2) execution against targeted improvements in Vascular Closure—especially legacy product turnaround efforts, and (3) margin performance as cost savings and portfolio transformation initiatives take hold. Progress on regulatory approvals and new product launches will also be important milestones. Haemonetics currently trades at a forward P/E ratio of 14.2×. Should you double down or take your chips? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Examiner
12-05-2025
- Business
- Irish Examiner
Limited port space challenges plans for wind energy
The chief executive of industry representative body WindEurope, Giles Dickenson, recently said Europe's ports 'are not ready for the build-out of offshore wind Europe wants'. "That's deeply worrying. Because you can't do offshore wind without ports. If the ports aren't ready, then all the other huge efforts and investments that are being made across the offshore wind value chain are potentially wasted.'' Mr Dickenson says Europe needs to invest €8.5bn in port infrastructure in the next five, years, and this is very applicable to ports do not seem to be ready, and we do not have enough capacity to cater for the projects confirmed. Ireland has committed to delivering 5 GW of offshore wind by 2030, but is this achievable? Ireland is making progress on fixed offshore, with 4.4 GWs of fixed offshore wind farms proceeding through the planning process following the ORESS (offshore wind renewable electricity auction) auction of 2023, with more expected this year. However, a blind spot for Ireland is its sea ports – we do not have enough ports at the right size, in the right place, to meet requirements. The need for capacity and space at Ireland's ports is pivotal to realising our goals for offshore renewable energy (ORE). DCU have analysed this in the Research Ireland Programme called NexSys. There are three categories of ports required to satisfy the needs of offshore windfarm implementation in Ireland: Operations and Maintenance (O&M) ports, Foundation Marshalling ports, and Installation Marshalling ports. With regards O&M ports, Ireland would seem to be well served. Foundation Marshalling ports effectively manage the staging and installation of the offshore fixed bottom wind turbines foundations. The DCU study shows that many monopile steel foundations get shipped in bulk from Asia. The size and draft (-12m) of these ships limit where they could be offloaded – Rosslare would have a challenge. Foundations can also be sourced in Europe where shipments volumes can be lower, but cost may be an issue. Installation Marshalling ports provide a consolidation hub for fixed windfarms, where turbine towers, nacelles (a type of housing unit for essential equipment) and blades can be offloaded, stored, partially assembled before they are deployed at sea. A harbour draft of up to -10m as well as reinforced laydown area, and quay perspective, are a necessity. Research shows that co-locating the foundation load-out process and installation process for turbines, blades, etc, is not seen as best practice. The laydown area is a critical component in a port's ability to support the rollout. Rosslare has 21 hectares of laydown while Cork has 23ha. To put Ireland's total laydown area of 44ha in perspective: Hull in the UK has 61ha; Esbjerg (Denmark) 170ha, Cuxhaven (Germany) 152ha; Eemshaven (Netherlands) has 46ha of space for offshore work. Many sources say that 'a single 1 GW windfarm project with 12-14 MW turbines would occupy 22ha of a port for two years during the construction period'. Cork has commenced the extension of its pier but is yet to apply for planning for reclamation work. Rosslare is waiting to progress its planning application to deliver its quays and laydown area. These two ports are the only ports in the State. Belfast has more than 30GW of UK and Irish projects close to it, already making it an in-demand port. If Ireland is limited to just 44 Ha of laydown space from Cork and Rosslare, we will only be able to install about 0.5GW per annum and this could delay achieving 5GW of installed offshore wind energy by eight years, to 2038. What can be done? Port options in Ireland are limited due to the geophysical aspects of our ports, the physical size of the equipment, and the limitations in our port infrastructure and offshore wind energy port strategy, but there are solutions. Bantry, Shannon Foynes, and possibly Bremore offer solutions as Foundation Marshalling ports. Bantry and Shannon Foynes need development to support floating wind anyway, so why not invest earlier? The upcoming ports policy from the Dept of Transport is a key document as to whether the barrier of infrastructural investment by government has been changed. Non-Irish options are open to any developer if they source the foundations from European sources like Holland or Spain, potentially feeding a site directly using barges. Neither are ideal. If foundations are procured from the Far East, these items will be shipped in bulk to a feeder port, preferably in Ireland. Using Belfast, Scotland, or another UK port could offer solutions, but these are jobs lost to the State. It's a far cry from the Dept of Enterprise, Trade and Employment's Power Prosperity strategy document which spoke of building ''a successful, vibrant, and impactful new offshore sector, and to ensure the sector creates value for the people of Ireland'. James Carton is assistant professor in sustainable energy in Dublin City University. Bill Duggan is a research assistant at DCU.
