Haemonetics’ second quarter results were met with a significant negative market reaction, reflecting concerns about declining revenue despite exceeding Wall Street expectations. Management attributed the 4.4% year-over-year sales decline mainly to planned portfolio transitions, including divestitures and contract changes, while emphasizing strong growth in its base business. CEO Christopher Simon highlighted that “85% of total revenue is now driven by three core products—NexSys, TEG, and VASCADE—anchored in the U.S.,” underscoring a more focused and resilient portfolio. However, operational challenges, particularly within Interventional Technologies, and increased competition in vascular closure were called out as key issues impacting performance.
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Haemonetics (HAE) Q2 CY2025 Highlights:
- Revenue: $321.4 million vs analyst estimates of $301.6 million (4.4% year-on-year decline, 6.6% beat)
- Adjusted EPS: $1.10 vs analyst estimates of $1.02 (8.3% beat)
- Adjusted EBITDA: $102.1 million vs analyst estimates of $93.68 million (31.8% margin, 9% beat)
- Management reiterated its full-year Adjusted EPS guidance of $4.85 at the midpoint
- Operating Margin: 16.8%, up from 11.8% in the same quarter last year
- Organic Revenue was flat year on year vs analyst estimates of 5.1% declines (561.5 basis point beat)
- Market Capitalization: $2.60 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Haemonetics’s Q2 Earnings Call
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Rohin Patel (JPMorgan): Asked about the sustainability of plasma share gains and details on the software agreement’s impact. CEO Christopher Simon explained roughly half of plasma organic growth was from the software deal, with ongoing share gains expected to drive growth through the year.
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Anthony Petrone (Mizuho): Inquired about timing for full deployment of plasma share gains and strategic focus. Simon noted share conversions are ahead of schedule and expected to continue into next year, with R&D and patent defense remaining priorities.
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David Rescott (Baird): Pressed on confidence behind the anticipated recovery in Interventional Technologies. Simon acknowledged current outperformance in Blood Management Technologies is offsetting underperformance, with recovery in Interventional Technologies expected in the second half through targeted investments.
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Andrew Cooper (Raymond James): Sought specifics on actions being taken to address vascular closure execution. Simon detailed sales and marketing leadership hires, organizational restructuring, and new account management strategies to strengthen competitiveness, while cautioning improvement will be gradual.
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Michael Petusky (Barrington Research): Queried the cadence of margin improvements and competitive pressures in Interventional Technologies. CFO James D’Arecca indicated margin gains will be more pronounced in the second half, and Simon described the leadership overhaul as part of a broader turnaround effort.
Catalysts in Upcoming Quarters
In the coming quarters, our team will monitor (1) the pace of plasma center upgrades and further customer conversions to NexSys, (2) sustained adoption and geographic expansion of TEG 6s and heparinase neutralization cartridges, and (3) evidence of operational turnaround in Interventional Technologies, particularly improvement in vascular closure execution. Additionally, the impact of ongoing portfolio restructuring and cost management on profitability will be key signposts for progress.
Haemonetics currently trades at $53.99, down from $75.74 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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