BOSTON - Haemonetics Corp (NYSE:HAE), a company specializing in surgical and medical instruments, held its 2024 Annual Meeting of Shareholders on Thursday, with a strong turnout of nearly 96% of the eligible voting shares represented. Shareholders voted on several key proposals, including the reelection of the board of directors and executive compensation.
The incumbent directors, Christopher A. Simon, Robert E. Abernathy, Diane M. Bryant, Michael J. Coyle, Charles J. Dockendorff, Lloyd E. Johnson, Mark W. Kroll, Claire Pomeroy, and Ellen M. Zane were all reelected for one-year terms expiring in 2025. The votes for each director showed a clear majority in favor, with the lowest support being for Charles J. Dockendorff, who received over 46 million votes for his reelection.
In addition to the board elections, shareholders approved, on an advisory basis, the compensation package for the company's named executive officers. The proposal received significant support, with over 46 million votes in favor.
The appointment of Ernst & Young LLP as the company's independent registered public accounting firm for the fiscal year ending March 30, 2024, was also ratified by the shareholders with an overwhelming number of votes in favor, totaling approximately 47.7 million.
In other recent news, Haemonetics Corporation has been the focus of several significant developments. The company has seen an upgrade from Needham, shifting Haemonetics' stock from Hold to Buy with a price target of $112. This positive revision is based on the company's projected ability to achieve a "high-20%" operating margin target for fiscal year 2026, driven by a decrease in lower-margin Plasma sales and an increase in higher-margin Interventional Technologies sales.
Simultaneously, Haemonetics has upsized its private offering to $600 million in convertible senior notes, a rise from the initially proposed $525 million. The offering, due in 2029, is targeted towards qualified institutional buyers and includes an option for initial purchasers to buy up to an additional $100 million principal amount of notes.
In terms of earnings and revenue, Haemonetics has reported a 10% organic revenue increase in Q4 and a 12% rise for the fiscal year. The company has provided revenue guidance for fiscal year 2025, projecting growth across its core plasma and hospital business units, and a decline in its blood center business.
InvestingPro Insights
As Haemonetics Corp (NYSE:HAE) continues to garner shareholder support, a glimpse at the company's financial health through InvestingPro's real-time data shows a mixed picture. With a market capitalization of approximately $4.6 billion, Haemonetics is trading at a high earnings multiple with a P/E ratio of 39.15. The company's P/E ratio adjusted for the last twelve months as of Q4 2024 stands at a slightly lower 30.63, which may still be considered elevated by some investors, especially when compared to near-term earnings growth, resulting in a high PEG ratio of 17.75 for the same period.
Despite trading at these high multiples, Haemonetics has shown a solid revenue growth of 12.01% over the last twelve months as of Q4 2024, indicating a positive trajectory in its financial performance. Additionally, the company's gross profit margin stands strong at 54.38%, showcasing its ability to maintain profitability. Investors should note that Haemonetics does not pay a dividend, which could be a factor for those seeking income in addition to capital gains.
Two InvestingPro Tips for Haemonetics suggest that while the stock generally trades with low price volatility, and cash flows are sufficient to cover interest payments, potential investors should be aware that analysts have recently revised their earnings projections downwards for the upcoming period. For those looking to delve deeper into the financial metrics and gain more insights, there are additional tips available on InvestingPro's platform. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and discover the full range of expert analysis and tips that could guide your investment decisions.
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