The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Haemonetics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Haemonetics booked revenue of $191.2 million. The seven analysts polled by S&P Capital IQ predicted sales of $184.3 million. Sales were 8.1% higher than the prior-year quarter's $176.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.86. The eight earnings estimates compiled by S&P Capital IQ averaged $0.80 per share on the same basis. GAAP EPS of $0.72 for Q3 were 6.5% lower than the prior-year quarter's $0.77 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 50.2%, 270 basis points worse than the prior-year quarter. Operating margin was 13.2%, 300 basis points worse than the prior-year quarter. Net margin was 9.5%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $183 million. On the bottom line, the average EPS estimate is $0.87.
Next year's average estimate for revenue is $717.6 million. The average EPS estimate is $3.05.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 120 members out of 123 rating the stock outperform, and three members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Haemonetics a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Haemonetics is hold, with an average price target of $67.13.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.