Haemonetics Q3 Profit Climbs - Update

(RTTNews) - Haemonetics Corp. (HAE) Monday reported a sharp increase in the third-quarter profit, reflecting mainly an income tax benefit, despite a decline in revenues.

For the third quarter, the company posted net income of $16.29 million or $0.31 per share, significantly up from $9.90 million or $0.19 per share in the previous year.

On an adjusted basis, earnings were $0.61 per share, while the company posted $0.58 per share in the prior year. Non-GAAP net per share at-constant currency was $0.53, compared to $0.48 a year ago.

On average, 10 analysts polled by Thomson Reuters expected the company to earn $0.60 per share for the quarter. Analysts' estimates typically exclude special items.

For the recent quarter, the company recorded a tax benefit of $1.28 million, compared to a tax expense of $3.30 million a year earlier.

The Braintree, Massachusetts-based company manufactures automated blood component collection and surgical blood salvage devices for plasma fractionators, blood collectors, and hospitals.

Quarterly revenues declined 2.1 percent to $242.12 million from $247.40 million in the same quarter last year. Nine analysts had consensus revenue estimate of $243.77 million for the quarter.

The company's base revenue, that excludes recently-acquired whole blood business, increased 1 percent, and was up 4 percent on a constant currency basis. Excluding currency impact, net revenue was flat in the quarter.

Brian Concannon, president and CEO of the company stated that the growth in its base business included solid growth in Plasma, diagnostics and emerging markets.

U.S revenues increased 1.1 percent, while International revenues were down 5.5 percent from last year.

For fiscal 2014, adjusted earnings per share, excluding acquisition related amortization, are reaffirmed with a bias toward the lower end of the previously-provided range of $2.30 to $2.40, up about 15 to 20 percent over fiscal 2013 presented on a consistent basis.

Overall fiscal 2014 organic revenue is still expected to grow 2 to 4 percent in constant currency and 0 to 2 percent on a reported basis, which includes the impact of Yen weakness upon expected Japanese revenue.

The company also affirmed its previous estimate of total revenue growth of 5 to 7 percent.

Street currently is looking for fiscal year 2014 earnings of $2.35 per share, on revenues of $946.01 million.

HAE closed Friday's regular trading at $40.04 on the NYSE.