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Dec 28, 2019

Haemonetics Q3 2020 Earnings Report

Haemonetics reported third quarter fiscal year 2020 results, reaffirming revenue guidance and raising all other guidance for fiscal year 2020.

Key Takeaways

Haemonetics reported a 4.7% increase in revenue compared to the third quarter of fiscal year 2019. The company's value drivers are powering revenue and earnings growth, and they are transforming their product portfolio, reducing complexity, and advancing operational excellence.

Third quarter fiscal 2020 revenue was $259.0 million, up 4.7% compared with the third quarter of fiscal 2019.

Third quarter fiscal 2020 net income was $29.9 million, up $11.6 million or 63.6%, and earnings per diluted share was $0.58, up 65.7% when compared with the third quarter of fiscal 2019.

Third quarter fiscal 2020 adjusted net income was $48.5 million, up $15.1 million or 45.1%, and adjusted earnings per diluted share was $0.94, up 49.2% when compared with the third quarter of fiscal 2019.

The Company reaffirmed its GAAP total revenue guidance of 3 – 5% and organic revenue guidance issued on November 1, 2019.

Total Revenue
$259M
Previous year: $247M
+4.7%
EPS
$0.94
Previous year: $0.63
+49.2%
Gross Margin
49.4%
Adjusted Gross Margin
52.1%
Operating Margin
15.8%
Gross Profit
$128M
Previous year: $111M
+15.2%
Cash and Equivalents
$126M
Previous year: $155M
-18.4%
Free Cash Flow
$58.9M
Previous year: $28.9M
+103.6%
Total Assets
$1.24B
Previous year: $1.23B
+0.8%

Haemonetics

Haemonetics

Haemonetics Revenue by Segment

Forward Guidance

The Company raised its adjusted operating margin, adjusted earnings per diluted share and free cash flow before restructuring and turnaround guidance.

Positive Outlook

  • Adjusted operating margin ~22%
  • Adjusted earnings per diluted share $3.30 - $3.40
  • Free cash flow, before restructuring & turnaround $125-$150 million
  • Fiscal 2020 earnings guidance includes estimated benefits from the Complexity Reduction Initiative
  • Fiscal 2020 earnings guidance includes estimated benefits from the Operational Excellence Program and the share repurchase program.

Revenue & Expenses

Visualization of income flow from segment revenue to net income