What Happened?
Shares of blood products company Haemonetics (NYSE: HAE). jumped 22.1% in the morning session after the company reported third-quarter results that surpassed analyst expectations and raised its full-year financial guidance.
The medical technology firm posted adjusted earnings of $1.27 per share on revenue of $327.3 million, with both figures comfortably beating Wall Street's forecasts. While total revenue declined 5.3% year-on-year, the company's organic revenue fell only 1.8%, which was significantly better than the 5.3% decline analysts had anticipated, signaling resilience in its core operations. Furthermore, Haemonetics demonstrated strong profitability and cash generation. Its operating margin expanded to 17.9% from 15% in the same quarter last year, and free cash flow was a robust $106.3 million. Bolstered by the strong performance, management lifted its full-year adjusted earnings per share guidance to a midpoint of $4.90.
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What Is The Market Telling Us
Haemonetics’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Haemonetics and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 27 days ago when the stock dropped 2.5% on the news that worries over worsening trade relations with China were triggered by critical comments from President Donald Trump. The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. The trade dispute flared up after China imposed export controls on rare earth minerals, which are critical components for high-tech manufacturing. The escalation of the trade war raises concerns about supply chain disruptions and increased costs for technology companies, which are heavily reliant on global trade, leading to a broad sell-off in the sector.
Haemonetics is down 16.9% since the beginning of the year, and at $65.13 per share, it is trading 30.2% below its 52-week high of $93.38 from November 2024. Investors who bought $1,000 worth of Haemonetics’s shares 5 years ago would now be looking at an investment worth $661.92.
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