Haemonetics (NYSE:HAE) yesterday posted fiscal 2nd-quarter numbers that topped expectations on Wall Street by more than a dime, despite flat sales growth, as the company executes a reorganization plan.
The Braintree, Mass.-based blood management company posted profits of $19.8 million, or 38¢ per share, on sales of $220.3 million for the 3 months ended Oct. 1, for bottom-line growth of 54.1% on flat sales growth compared with fiscal Q2 2016.
Adjusted to exclude 1-time items, earnings per share were 46¢, a full 11¢ ahead of The Street, where analysts were looking for sales of $210.7 million.
“Our 1st-half revenue achievement and cost-reduction initiatives position us well to achieve our full-year projections. The June leukoreduction filter recall had a modest negative revenue impact in the 2nd quarter and added $4 million of expenses in the 1st half. Despite this challenge, our team delivered results in line with our expectations and we are reaffirming our full year guidance,” CEO Christopher Simon said in prepared remarks. “As we have said previously, this is a multi-year journey with all the associated challenges and uncertainties. We are implementing our strategic plan and we are gaining momentum in our businesses. Our focus for the 1st half of fiscal 2017 has been on stabilizing the company and we are on track to achieve our $40 million annual savings target. Going forward, we will increasingly pivot to transforming our business through product innovation and reallocation of resources to growth businesses. We are restructuring our operating model, streamlining our organization and driving productivity.”
Haemonetics said it expects to put up full-year adjusted EPS of $1.40 to $1.50 on sales of $850 million to $875 million.
HAE shares were up 2.2% to $37.67 apiece today in late-morning trading.
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