Haemonetics Corporation

Haemonetics Corporation (NYSE: HAE) is a global healthcare company. The Company provides a suite of medical products and solutions for customers to help them improve patient care and reduce the cost of healthcare. Its technology addresses three medical markets: blood and plasma component collection, the surgical suite, and hospital transfusion services.

Recent Financial and Business Updates:

• In the fourth quarter of fiscal 2023, Haemonetics Corporation (NYSE: HAE) achieved revenue of USD 304.4 million, marking a 14.9% increase compared to the fourth quarter of fiscal 2022. Furthermore, organic revenue experienced strong growth in the fourth quarter of fiscal 2023, increasing by 17.2% compared to the same period in fiscal 2022.
• The gross margin for the quarter remained relatively stable at 51.3% compared to 51.4% in the same period last year, influenced by inflationary pressures in the global manufacturing and supply chain, higher depreciation expenses, and foreign exchange rates. These factors were partially offset by volume and price benefits, as well as reduced restructuring costs.
• Operating expenses for the fourth quarter of fiscal 2023 were USD 121.0 million, up from USD 117.1 million in the fourth quarter of fiscal 2022. The rise in operating expenses primarily stemmed from performance-based compensation, investments in sales and marketing, and research and development. However, there were mitigating factors such as decreased amortization of acquired intangible assets, lower freight costs, and savings from the Operational Excellence Program.
• The net income for the fourth quarter of fiscal 2023 reached USD 29.4 million, with earnings per diluted share of USD 0.57, compared to net income of USD 9.7 million and earnings per diluted share of USD 0.19 in the fourth quarter of fiscal 2022.
• As of April 1, 2023, Haemonetics had cash on hand amounting to USD 284.5 million, reflecting a USD 25.0 million increase from April 2, 2022. During fiscal 2023, the company generated USD 273.1 million in cash flow from operating activities, and its free cash flow, excluding restructuring costs, reached USD 190.4 million. These figures demonstrate improvement from the previous fiscal year, which reported cash flow from operating activities of USD 172.3 million and free cash flow of USD 117.4 million.
• For the fiscal year 2024, Haemonetics issued its GAAP total revenue and organic revenue growth guidance. The company anticipates a reported total revenue growth of 4-7%, including a projected currency impact of -1%, and organic revenue growth of 5-8%. Additionally, Haemonetics provided revenue guidance for its business units in fiscal 2024. Plasma revenue is expected to grow by 3-6%, Blood Center revenue is forecasted to range from a decrease of 2% to flat growth, and Hospital revenue is projected to increase by 16-18%. Moreover, Haemonetics disclosed its adjusted operating margin guidance for fiscal 2024, which is estimated to be in the range of 20-21%. The company also provided its adjusted earnings per diluted share guidance of USD 3.45 to USD 3.75. Lastly, Haemonetics expects its free cash flow, before restructuring costs, to range from USD 80 million to USD 100 million.

Technical Observation (on the daily chart)

The price of HAE stock has shown a consistent upward trend since making its 52-week low on June 16, 2022, with a gain of approximately 52.08%. In the past one year, the stock has been on an uptrend with a return of around 35.99%. Currently, the stock is currently near an important resistance of USD 90.00-USD 98.00. A breakout in upward direction from this range would likely initiate a new short-term trend in the upward direction. The RSI (14 period) momentum indicator is at a value of 60.86, taking some rejection from overbought zone of 70, with an expectation of some consolidation or a short-term correction before the continuation of the upward trends. Moreover, the price is currently positioned above both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term support levels.

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As per the above-mentioned price action, consolidation since January 2023, and technical indicators analysis, a ‘Watch’ rating has been given Haemonetics Corporation (NYSE: HAE) at the closing price of USD 88.14 as of June 09, 2023.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is June 09, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.