Haemonetics (NYSE:HAE) turned things around in its 2nd quarter, blowing away Wall Street analysts’ expectations with per-share diluted earnings more than 16% beyond consensus estimates.
The blood management devices maker reported $6.5 million in profit, or 90¢ per diluted share, on sales of $218.2 million during the 3 months ended Sept. 29, 2012. That’s a 21.6% bump in sales but a 52.8% drop in profit from the $13.9 million earned, or 72¢ per share, on sales of $179.4 million during the same period last year.
Reported earnings were dragged down by 1-time expenses, including some related to the $550 million buyout of whole blood business Pall Corp. (NYSE:PLL), which closed in August.
Adjusted to exclude 1-time costs, net income was 77¢ per share, a 25% increase from the same period last year and beating analyst’s expectations by 13¢.
Haemonetics wasn’t looking quite as good during its last quarter, when it missed analyst’s forecasts by 27¢. The company said at that time that the Pall Transfusion Medicine division would contribute approximately $135 million-$145 million in sales for the rest of the fiscal year.
"The highlights of our 2nd quarter were the successful acquisition of the whole blood business and continued organic revenue growth in disposables across our entire product portfolio," president & CEO Brian Concannon said in prepared remarks. "Strong demand for the Cell Saver Elite and TEG disposables, and growth in our OrthoPAT business, provide strong evidence that our hospital customers continue to embrace our blood management solutions recognizing the inherent value proposition offered."
Haemonetics saw 26% growth in its disposables division, including a 16% spike in surgical disposables, 23% growth in diagnostics disposables, and 7% growth in plasma disposables. The Braintree, Mass.-based company also reported 4.9% growth in software solutions, but a 3.4% slide in "equipment & other," according to the filing.
The blood solutions provider also saw strong regional growth, reporting 30.9% revenue growth in the U.S. and 12.9% internationally, including 21% organic revenue growth in China.
Haemonetics reaffirmed its previous guidance for the full fiscal year, expecting organic revenue growth of about 4-6% and total revenue growth of 23-36%, in the range of $890-$915 million. The company continues to forecast 2013 earnings between $3.30-$3.40, representing a 9%-12% boost over 2012.