Ariel Investments, LLC — Ariel Small/Mid Cap Value Composite on Haemonetics Corporation
Thesis
Haemonetics exceeded earnings expectations and raised full-year guidance as plasma products grew faster than expected. Its vascular-closure franchise improved, while margins and cash generation strengthened. A new CSL Plasma supply agreement could expand revenue and profits materially. Ariel sees sustained plasma momentum and a broader operational improvement supporting long-term growth.
“a new supply agreement with CSL Plasma, which could meaningfully expand the company's revenue and earnings over time.”
Key risks
- The anticipated revenue and earnings contribution from the new CSL Plasma agreement remains prospective.
- The pace of plasma growth and vascular-closure improvement may not persist at the quarter’s strong level.