HAE · Haemonetics
Conviction · Medium · more likely to lead the S&P 500 over the next three months, by a modest margin
Wrong if: a weekly close below $103
Note written ·
Price against the kill line
19.4% clear of its kill line on the 13 November 2026 close.
How to read this
The red mark is the price level of the published kill line: a close through it (a weekly close, on a weekly line) would prove the research note wrong on price. The dot is where the stock closed on 13 November 2026; a dot left of the mark has closed through its line.
The scale is stretched near the line, so close calls are easy to see. More than 8% from the line, the stock reads well clear, with a hollow dot to show the figure is off the drawn scale.
The kill line is the research note's own test. The portfolio sells on business facts, not on a price. How the portfolio decides
Three months against the kill line
Daily closes, to . Red: the kill line, a weekly close below $103.00, on record since 10 November 2026; only a weekly close settles it. The shares are up 36.2% since the close; the S&P 500 is down 2.1% over the same sessions. Figures in the note can cover a different window.
Kill line
A weekly close below $103, which would give back nearly all of the gain that followed CSL's 8 October 2026 rollout statement; separately, a cut to the 6–9% fiscal 2027 organic growth range or a CSL completion date later than calendar 2027.
Research onlyNot in the portfolio.
Catalyst
Key figures from the filings · Health Care
Quarter to 26 September 2026, filed 5 November 2026; valuation at the 13 November 2026 close
- Revenue, latest quarter ($M)
- 358
- Revenue, change on a year (%)
- +9.3
- Gross margin (%)
- 61.7
- Operating margin (%)
- 21.0
- Free cash flow, four quarters ($M)
- 298
- Net cash, cash less debt ($M)
- −876
- Price to earnings (×)
- 53.9
- Enterprise value to sales (×)
- 4.7
All filed numbers
What Haemonetics reports to the SEC in its quarterly and annual filings. Each group states its period and filing date once; a figure dated otherwise says so. Built from the filings known on .
| Quarter to | Revenue ($M) | On a year (%) | Gross margin (%) | Operating margin (%) |
|---|---|---|---|---|
| first filed | 358 | +9.3 | 61.7 | 21.0 |
| first filed | 339 | +5.6 | 59.8 | 16.9 |
| first filed | 346 | +4.8 | 57.2 | −6.6 |
| first filed | 339 | −2.7 | 59.7 | 19.9 |
| first filed | 327 | −5.3 | 59.5 | 17.9 |
| first filed | 321 | −4.4 | 59.8 | 16.8 |
| Pre-tax income ($M) | 62.9 |
| Net income ($M) four quarters: 104 | 46.3 |
| Diluted shares, change on a year (%) against the quarter to 27 September 2025 | −2.5 |
| Operating cash flow ($M) | 345 |
| Capital spending ($M) | 46.7 |
| Free cash flow ($M) | 298 |
| Cash and short-term investments ($M) | 261 |
| Debt ($M) long-term debt | 1,137 |
| Net cash, cash less debt ($M) | −876 |
| Deferred revenue ($M) +39.3% on a year | 67.3 |
| Backlog, orders not yet delivered ($M) −15.2% on a year | 30.1 |
| Receivables ($M) | 225 |
| Inventory ($M) | 305 |
| Shareholders' equity ($M) | 899 |
| Market value ($M) | 5,598 |
| Enterprise value, market value plus net debt ($M) | 6,474 |
| Enterprise value to sales (×) | 4.7 |
| Enterprise value to operating income (×) | 36.6 |
| Price to earnings (×) | 53.9 |
| Price to book value (×) | 6.2 |
| Free-cash-flow yield (%) | 5.3 |
Short interest (FINRA, settled 15 October 2026, published 26 October 2026): 7.5% of shares outstanding sold short, 3.9 days of average trading to cover, +12.8% since the previous report.
| Window | Bought | Sold |
|---|---|---|
| 90 daysfrom | $0 | $101K |
| 12 monthsfrom | $0 | $101K |
The thesis
Haemonetics' plasma revenue grew 17.7% organically in the quarter to 26 September 2026 while the CSL Plasma conversion had only just begun, so most of the CSL contribution is still ahead. The fiscal third-quarter report, expected around 4 February 2027, shows whether that revenue arrives without another cut to the margin outlook.
On 5 November 2026 the company reported second-quarter fiscal 2027 revenue of $357.8 million. That was up 9.3% reported and 10.0% organically, meaning without currency and other non-operating effects. Benzinga put the estimate at $345.0 million. Adjusted earnings per share (EPS) were $1.35 against a $1.29 estimate. The company raised its fiscal 2027 organic growth range to 6–9% from 4–7%.
The price already carries much of the CSL return. The shares touched a 52-week intraday high of $132.00 on 5 November 2026 and closed at $120.54 on 11 November 2026, 8.7% below that high. Citigroup, Barrington Research and BTIG all raised their targets between 5 November 2026 and 6 November 2026. The rating is Medium because the plasma acceleration and the raised guidance are reported facts. Against that, the margin cut and a 33.4% gain over three months leave less room for surprise.
Bullish and bearish views on Haemonetics Corporation
The bull case on Haemonetics Corporation (HAE), in brief: plasma accelerated before CSL arrived. The bear case: CSL's revenue remains undisclosed.
Bull case
- Plasma accelerated before CSL arrived. Plasma revenue was $162.6 million in the quarter ended 26 September 2026, up 17.7% organically, according to the 5 November 2026 release. Organic plasma growth was 8% the quarter before, per Earnings Whispers' 28 October 2026 preview. Management said on the 5 November 2026 call that global plasma collections grew by a high single-digit percentage.
- Guidance rose with CSL only partly included. Benzinga reported on 5 November 2026 that the fiscal 2027 sales range moved to $1.441–$1.481 billion from $1.401–$1.441 billion, against a $1.418 billion estimate. Management said the range counts CSL centers converted or formally notified through 31 December and leaves out later fiscal fourth-quarter conversions.
- The CSL conversion is under way. Chief Executive Chris Simon said on the 5 November 2026 call that pilot work began in September and full-scale conversion began in October. CSL said on 8 October 2026 that it expects to convert all of its current US centers by the end of calendar 2027.
- Brokers raised targets after the report. Benzinga reported that Citigroup raised its target to $149 and Barrington Research to $145 on 6 November 2026. BTIG raised its target to $142 from $130 on 5 November 2026.
- The returning business has an outside estimate. BTIG estimated on 8 October 2026 that US CSL revenue, excluding software, was about $155 million in fiscal 2024. The firm put full recovery at roughly $0.60 of annual EPS.
- Cash flow pays down debt. First-half free cash flow was $142.9 million, per the 5 November 2026 release. Net leverage was about 2.5 times earnings before interest, tax, depreciation and amortization (EBITDA), management said on the call.
- PerQseal Elite adds a later driver. The company announced Food and Drug Administration approval of the large-bore vascular closure device on 19 October 2026. Simon put the global large-bore closure market at about $300 million on the 5 November 2026 call.
Bear case
- CSL's revenue remains undisclosed. Management declined to give a CSL revenue figure on 5 November 2026, citing confidentiality and competitive reasons. Chief Financial Officer James D'Arecca called the contribution "more of a fiscal 28 and beyond" story, so broker estimates are the only measure until results show it.
- Margin guidance moved down. On 5 November 2026 the company cut its expected fiscal 2027 adjusted operating margin expansion to 0–0.5 point from 0.5–1.0 point. Second-quarter adjusted operating margin was 26.3%, down 0.4 point.
- Tariff refunds lifted gross margin. Management said on the 5 November 2026 call that the 61.9% adjusted gross margin included about 2 points from tariff refunds, which will not recur.
- The year leans on the fourth quarter. Guidance given on 5 November 2026 puts much of the fiscal 2027 growth and margin expansion in the fiscal fourth quarter. That leaves little room for a slow conversion pace.
- The shares have already moved far. The shares rose 33.4% in the three months to 11 November 2026, from a close of $90.38 on 13 August 2026. The 200-day moving average stood at $80.69 on 11 November 2026, well below the last close.
- Convertible notes become dilutive. The $700 million of 2.5% convertible notes due 2029 convert at about $117.12, below the 11 November 2026 close of $120.54. Further gains add to the diluted share count.
Price setup
The shares closed at $120.54 on 11 November 2026, up 33.4% over three months. The 50-day moving average was $112.51 and the 200-day was $80.69 on that date, per adjusted daily closes. The 52-week closing low was $52.24 on 11 May 2026, before the CSL agreement drove the rerating.
The highest close in the recent run was $127.42 on 4 November 2026, the day before results. On report day the shares reached an intraday 52-week high of $132.00 and closed at $124.11. Closes since 6 November 2026 have held between $118.21 and $122.36. The market took the beat-and-raise as largely priced in, even as three brokers raised targets.
The nearest reference levels are the 50-day moving average and the convertible conversion price near $117.12. Below them lies the price range the shares held before CSL's 8 October 2026 statement. Broker targets published after the report run from $142 (BTIG) to $149 (Citigroup).
Catalysts ahead
- 31 December 2026: Cut-off for CSL centers counted in fiscal 2027 guidance. Centers converted or formally notified by this date are in the guided range; later conversions are not, so the count shows how much fiscal fourth-quarter upside remains outside guidance.
- ~4 February 2027 (est.): Fiscal third-quarter 2027 report. Shows the pace of CSL conversions, whether the 0–0.5 point margin expansion range holds, and whether further fourth-quarter conversions enter guidance.
- ~6 May 2027 (est.): Fiscal fourth-quarter 2027 report and fiscal 2028 guidance. First annual outlook covering most of the CSL conversion, and the first clear measure of what the returning business earns after placement costs.
What would change the view
A weekly close below $103, which would give back nearly all of the gain that followed CSL's 8 October 2026 rollout statement; separately, a cut to the 6–9% fiscal 2027 organic growth range or a CSL completion date later than calendar 2027.
The risks this note tracks, each with what would confirm it:
- Conversion costs outrun CSL earnings, leaving margins lower for longer. Confirmed by: a fiscal third-quarter report that lowers the 0 to 0.5 point adjusted operating margin expansion guide.
- The second half misses because growth and margin expansion are weighted to the fiscal fourth quarter. Confirmed by: a lowered 6–9% organic growth range or 8–11% reported growth range at the fiscal third-quarter report.
- CSL narrows or slows the rollout; the agreement is non-exclusive with no minimum purchases. Confirmed by: CSL or Haemonetics commentary cutting the center count or moving completion past the end of calendar 2027.
- With the shares above the ~$117.12 conversion price, further gains make the 2029 convertible notes more dilutive. Confirmed by: a rising diluted share count tied to the notes in the fiscal third-quarter 10-Q.
- Tariff costs rise after refunds that lifted Q2 FY2027 gross margin by roughly 2 points. Confirmed by: a Section 232 decision imposing medical-device tariffs, followed by company commentary putting a number on the added cost.
- PerQseal Elite gains share slowly against established large-bore closure devices, adding little revenue before fiscal 2028. Confirmed by: interventional Technologies organic growth staying near the 3.2% of Q2 FY2027 through fiscal 2028 guidance.
What it trades with
The shares trade mainly on company-specific news: CSL's 8 October 2026 rollout statement and the 5 November 2026 report drove the recent moves. Plasma collection volumes tie the company to CSL Limited and Grifols, the large plasma collectors. Management said on 5 November 2026 that global collections grew by a high single-digit percentage. US medical-device tariff policy is a risk shared across device makers, and this year's gross margin includes tariff refunds. PerQseal Elite links the company to structural heart and other large-bore catheter procedure volumes, which are still too small a share of revenue to move the shares.
The evidence, claim by claim (8)
- Second-quarter fiscal 2027 revenue was $357.8 million, up 9.3% reported and 10.0% organically; adjusted EPS was $1.35 and GAAP diluted EPS was $1.00. Haemonetics Q2 FY2027 earnings release, Form 8-K exhibit 99.1 · as of
- Plasma revenue was $162.6 million, up 16.5% reported and 17.7% organically; MedSurg revenue was $153.0 million, up 5.5% organically. Haemonetics Q2 FY2027 earnings release, Form 8-K exhibit 99.1 · as of
- Fiscal 2027 organic growth guidance rose to 6–9% from 4–7%, and reported growth to 8–11% from 5–8%; adjusted operating margin expansion fell to 0–0.5 point from 0.5–1.0 point. Haemonetics Q2 FY2027 earnings release, Form 8-K exhibit 99.1 · as of
- Adjusted gross margin of 61.9% included a benefit of roughly 2 points from tariff refunds; adjusted operating margin was 26.3%, down 0.4 point. Haemonetics Q2 FY2027 earnings call and release · as of
- First-half free cash flow was $142.9 million; cash was $260.7 million at 26 September 2026 and net leverage was about 2.5 times EBITDA. Haemonetics Q2 FY2027 earnings release and call · as of
- Citigroup kept its Buy rating and raised its Haemonetics price target to $149. Benzinga, 6 November 2026 · as of
- Barrington Research kept its Outperform rating and raised its price target to $145 from $140. Benzinga and Fiscal.ai, 6 November 2026 · as of
- BTIG kept its Buy rating and raised its price target to $142 from $130. Benzinga, 5 November 2026 · as of
Sources
- SEC EDGAR
- HAE Haemonetics Corporation · earningswhispers.com ·
- Haemonetics beats and raises again on CSL fueled plasma surge but a margin guide cut shows the cost of growth · finviz.com
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