3Q Should Be Low-Point For Haemonetics

Haemonetics Corporation (NYSE: HAE) reported 2Q earnings that leads Morgan Keegan to believe that fiscal 3Q is expected to be the low-point in the company's sales cycle.In the report, Morgan Keegan writes "Haemonetics reported fiscal 2Q results that mirrored our expectations with sales that were softer than consensus numbers and EPS that was ahead of expectations. Plasma collections and the pressure on surgical procedures constrained the growth in the 2Q. In our opinion, the 2Q is likely to be the trough for sales as plasma collections rise through the year, surgical procedure growth should improve due to seasonality, and FX becomes positive. Moreover, we are confident in management's ability to meet earnings objectives due to expense controls. Although near-term catalysts are limited, we believe that the worst is behind the company."Morgan Keegan maintains its Outperform rating and $65 price target.Haemonetics Corporation closed yesterday at $55.06.