Blood products company Haemonetics (NYSE: HAE). beat Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 4.4% year on year to $321.4 million. Its non-GAAP profit of $1.10 per share was 8.3% above analysts’ consensus estimates.

Is now the time to buy HAE? Find out in our full research report (it’s free).

StockStory’s Take

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.

Looking ahead, Haemonetics is maintaining its full-year adjusted EPS guidance, with management expressing confidence in organic growth and ongoing margin expansion. The company’s outlook is driven by continued adoption of new technologies, expansion of core product franchises, and targeted commercial initiatives to address underperformance in Interventional Technologies. CFO James D’Arecca stated that “margin gains will build throughout the year, supported by share gains in plasma, strong TEG momentum, and improved contributions from Interventional Technologies in the second half.” While management expects ongoing portfolio transformation and productivity initiatives to support results, they cautioned that some operational improvements, especially for vascular closure products, will be gradual and execution-dependent.

Key Insights from Management’s Remarks

Management credited margin expansion and base business growth to technology upgrades in plasma and hospital segments, while noting executional issues in Interventional Technologies and the impact of portfolio transitions.

• Plasma technology upgrades: The NexSys platform, especially with Persona and Express Plus features, drove share gains and improved profitability in the plasma segment. Management highlighted a onetime software agreement as a significant contributor to growth, reinforcing Haemonetics’ dominant position in U.S. plasma data management systems.

• Hemostasis management momentum: Strong adoption of the TEG 6s system and rapid uptake of the heparinase neutralization cartridge boosted blood management technology growth, particularly in the U.S. The shift from lab-based to point-of-care systems supported higher utilization and recurring disposable sales.

• Interventional Technologies underperformance: The vascular closure business faced execution issues, with MVP and MVP XL showing moderate growth but legacy VASCADE products lagging, especially in lower-growth procedures. Management described the softness as temporary and executional, not structural, and outlined leadership changes and targeted initiatives to regain competitiveness.

• Portfolio transformation impact: Planned headwinds from the divestiture of the whole blood business and the exit of certain product lines weighed on reported revenues but improved gross margin mix, as lower-margin products were phased out.

• Operational improvements and cost discipline: Enterprise-wide productivity initiatives and a focus on aligning resources to growth areas helped expand adjusted operating margin, with management expecting further leverage as commercial execution improves in the back half of the year.

Drivers of Future Performance

Haemonetics’ guidance is anchored in expanding adoption of core technologies, margin improvements, and recovering performance in underperforming segments.

• Plasma share gains and price benefits: Management expects further organic growth from continued adoption of NexSys technology, additional customer conversions, and price improvements from previously contracted upgrades. Ongoing software integration is projected to sustain a strong competitive position, but plasma collection volumes remain subject to cyclical trends and customer productivity gains.

• Hospital segment momentum with TEG: The hospital business is forecast to remain a primary growth driver, with hemostasis management expanding through TEG 6s adoption and new cartridge rollouts. Management believes the rollout is in early stages, especially internationally, and anticipates continued conversions from older TEG systems, supporting recurring revenue streams.

• Execution risks in Interventional Technologies: While leadership changes and targeted sales initiatives are underway to address weaknesses in vascular closure, management cautioned that achieving market growth rates will require time and improved execution, with competitive pressures and changing customer dynamics posing ongoing risks.

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 $54.24, down from $75.74 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

Now Could Be The Perfect Time To Invest In These Stocks

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.