Blood products company Haemonetics (NYSE: HAE). beat Wall Street’s revenue expectations in Q1 CY2025, but sales fell by 3.7% year on year to $330.6 million. Its non-GAAP profit of $1.24 per share was 1.6% above analysts’ consensus estimates.
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Haemonetics (HAE) Q1 CY2025 Highlights:
- Revenue: $330.6 million vs analyst estimates of $327.3 million (3.7% year-on-year decline, 1% beat)
- Adjusted EPS: $1.24 vs analyst estimates of $1.22 (1.6% beat)
- Adjusted EBITDA: $106.5 million vs analyst estimates of $105.8 million (32.2% margin, 0.6% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $4.85 at the midpoint, missing analyst estimates by 1.6%
- Operating Margin: 21.6%, up from 8.7% in the same quarter last year
- Free Cash Flow was -$70.83 million, down from $29.23 million in the same quarter last year
- Organic Revenue was flat year on year (10.2% in the same quarter last year)
- Market Capitalization: $3.23 billion
Company Overview
With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE: HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.
Sales Growth
A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, Haemonetics’s sales grew at a mediocre 6.6% compounded annual growth rate over the last five years. This fell short of our benchmark for the healthcare sector and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Haemonetics’s annualized revenue growth of 7.9% over the last two years is above its five-year trend, suggesting some bright spots. 
Haemonetics also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Haemonetics’s organic revenue averaged 6.8% year-on-year growth. Because this number aligns with its normal revenue growth, we can see the company’s core operations (not acquisitions and divestitures) drove most of its results. 
This quarter, Haemonetics’s revenue fell by 3.7% year on year to $330.6 million but beat Wall Street’s estimates by 1%.
Looking ahead, sell-side analysts expect revenue to decline by 2.5% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges.
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Operating Margin
Haemonetics has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 12.5%, higher than the broader healthcare sector.
Looking at the trend in its profitability, Haemonetics’s operating margin rose by 6 percentage points over the last five years, as its sales growth gave it operating leverage. Zooming in on its more recent performance, we can see the company’s trajectory is intact as its margin has also increased by 2.9 percentage points on a two-year basis.
In Q1, Haemonetics generated an operating profit margin of 21.6%, up 12.9 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Haemonetics’s decent 6.7% annual EPS growth over the last five years aligns with its revenue performance. This tells us its incremental sales were profitable.
In Q1, Haemonetics reported EPS at $1.24, up from $0.90 in the same quarter last year. This print beat analysts’ estimates by 1.6%. Over the next 12 months, Wall Street expects Haemonetics’s full-year EPS of $4.57 to grow 8.1%.
Key Takeaways from Haemonetics’s Q1 Results
We were impressed by how significantly Haemonetics blew past analysts’ organic revenue expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its full-year EPS guidance missed. Overall, this print had some key positives. The stock traded up 2.4% to $65.79 immediately following the results.
So do we think Haemonetics is an attractive buy at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.
