Haemonetics (NYSE:HAE) shares are down some 9% today after the blood management company lowered its sales outlook for the rest of fiscal 2013, despite posting Wall Street-beating earnings per share for the 3 months ended Dec. 29, 2012.
Braintree, Mass.-based Haemonetics reported Q3 profits of $9.9 million, or 19¢ per share, on sales of $247.4 million. That’s a 45.7% profit slide and a 29.4% sales increase.
Adjusted to exclude 1-time items, EPS reached 50¢, 3 pennies ahead of expectations on The Street. That sent shares down 9.1% to $40.38 apiece as of about 11 a.m. today.
"The highlight of our 3rd quarter was the earnings power that became more visible in our business. Our profitability was driven by the ongoing contribution from our recent whole blood acquisition and continued solid organic revenue growth in our hospital business on the strength of strong demand for the Cell Saver Elite and TEG disposables. Our hospital customers continue to embrace our blood management solutions, recognizing the inherent value proposition offered," president & CEO Brian Concannon said in prepared remarks. "Our growth and strong profitability are enabling us to fund key identified growth initiatives and new product offerings. Using our enhanced process for new product introduction that has driven success of the Cell Saver Elite device, we will soon launch the paperless phlebotomy offering in a limited whole blood market."
Haemonetics said its Q3 EPS include about $15 million worth of adjustments to cost of goods sold during its fiscal 2nd and 3rd quarters and a $6.1 million charge from its warning about potential leak defects in a blood collection component.
Looking ahead to the rest of the fiscal year, the company lowered its sales outlook to $888 million to $898 million, up 22%-23% over fiscal 2012 but below prior guidance of $890 million to $915 million, or 23%-36% growth over the prior year.
Haemonetics stood pat on its earnings forecast, however, predicting EPS of $3.30-$3.40 (9%-12% over FY2012) and adjusted EPS of $1.65-$1.70 as the "paced ramp-up of expenses is expected to continue to accelerate in the 4th quarter," according to a press release.
For fiscal 2014, Haemonetics said it expects revenues to exceed $1 billion, with adjusted EPS of $1.95-$2.05, including about $27 million or 35¢ per share in acquisition-related amortization expense.
