A Review of Q4 Earnings for Medical Devices & Supplies Specialty Stocks: Comparing Haemonetics (NYSE:HAE) to Its Competitors

Exploring Medical Device & Specialty Supply Stocks After Q4 Earnings

As earnings season wraps up, it's an opportune moment to identify promising stocks and evaluate how companies are navigating the current market landscape. Here, we examine the performance of Haemonetics (NYSE:HAE) and other notable players in the medical devices and specialty supplies sector during the fourth quarter.

Industry Overview

The medical devices sector is characterized by consistent demand, balanced with substantial investments in research, innovation, and regulatory compliance. Companies in this space often benefit from recurring income streams through consumables, maintenance, and technology upgrades, though specialty devices tend to serve more specific markets. The process of developing new products is both costly and time-consuming, given the need for rigorous clinical trials and regulatory approvals, which can impact both profitability and speed to market. Additionally, ongoing efforts by healthcare providers and insurers to control costs exert downward pressure on prices. Looking ahead, an aging global population is expected to increase the prevalence of chronic illnesses, fueling demand for medical treatments and monitoring technologies. Innovations in digital health, such as remote monitoring and smart devices, are likely to further stimulate demand by encouraging more frequent technology refreshes. However, the industry must also contend with challenges like value-based care models and the complexities of cybersecurity for connected devices.

Q4 Performance Snapshot

Among the seven specialty medical device and supply companies we tracked, fourth-quarter results were mixed. Collectively, their revenues fell short of Wall Street expectations by 2.1%.

Despite some companies outperforming others, the group as a whole experienced a decline, with average share prices dropping by 1.2% since their latest earnings announcements.

Haemonetics (NYSE:HAE) Highlights

Founded in 1971, Haemonetics is dedicated to advancing blood-related healthcare. The company offers specialized devices and software for blood collection, processing, and management, serving plasma centers, blood banks, and hospitals.

In the fourth quarter, Haemonetics posted revenues of $339 million, representing a 2.7% decrease year-over-year. Nevertheless, this figure surpassed analyst projections by 2.4%. The company notably exceeded both organic and overall revenue expectations for the quarter.

Despite these achievements, Haemonetics recorded the slowest revenue growth among its peers. Since the earnings release, its stock has declined by 2.6%, currently trading at $64.25.

Curious if Haemonetics is a good investment now?

Top Performer: Globus Medical (NYSE:GMED)

Operating in 64 countries and launching over 10 new products in 2023, Globus Medical specializes in implantable devices, surgical tools, and technology solutions for spine, orthopedic, and neurosurgical procedures.

Globus Medical reported a robust $826.4 million in revenue for Q4, marking a 25.7% year-over-year increase and beating analyst estimates by 3.2%. The company also outperformed expectations for full-year EPS and revenue.

Globus Medical led its peer group in both revenue growth and exceeding analyst forecasts. Despite this strong performance, the stock dropped 2.8% post-earnings and is now priced at $89.31.

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Lowest Performer: STAAR Surgical (NASDAQ:STAA)

STAAR Surgical, with over 2.5 million implants worldwide, designs and produces implantable lenses that correct vision without removing the eye’s natural lens.

For the fourth quarter, STAAR Surgical generated $57.8 million in revenue, up 18.1% year-over-year but missing analyst forecasts by 23.8%. The company fell short on both revenue and EPS expectations, making it the weakest performer in the group relative to analyst projections. Its stock has declined 1.8% since the report, now trading at $18.58.

Inspire Medical Systems (NYSE:INSP)

Inspire Medical Systems offers an innovative implantable neurostimulation device for patients with obstructive sleep apnea, providing an alternative to traditional CPAP machines by stimulating nerves to keep airways open during sleep.

The company reported $269.1 million in revenue for Q4, a 12.2% increase year-over-year and 1.1% above analyst expectations. Inspire Medical Systems also surpassed EPS and full-year EPS guidance estimates. Notably, it raised its full-year guidance more than any of its peers. Despite these positives, the stock has dropped 8.4% since the earnings release and is currently valued at $62.47.

Enovis (NYSE:ENOV)

Enovis is committed to helping patients maintain or restore natural movement, offering a range of orthopedic medical devices for injury prevention, pain relief, joint replacement, and rehabilitation.

In Q4, Enovis posted $575.8 million in revenue, a 2.6% year-over-year increase but 1.4% below analyst expectations. The quarter was mixed, with a strong beat on full-year EPS guidance but a slight revenue miss. The company’s stock has risen 9.1% since the earnings announcement and is now trading at $24.35.

Market Outlook

Following the Federal Reserve’s interest rate hikes in 2022 and 2023, inflation has gradually declined toward the 2% target. Remarkably, these measures did not trigger a recession, allowing for cautious optimism about a soft economic landing. Recent rate reductions—half a point in September 2024 and a quarter in November—have further boosted markets, especially after the November election results drove major indices to record highs. Still, investors face uncertainties around tariffs, corporate tax policies, and the economic outlook for 2025.

If you’re seeking stocks with strong fundamentals, explore our 9 Best Market-Beating Stocks to add to your watchlist. These companies are well-positioned for growth, regardless of shifts in the political or economic landscape.

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