Haemonetics Plummets 23%: Earnings Shock Triggers Bloodbath as Sector Wavers

Summary
• Haemonetics (HAE) slumps 23% intraday, plunging from $73.8 to $56.7 amid Q1 earnings disappointment.
• Earnings report reveals GAAP revenue miss of $3.65M and non-GAAP EPS shortfall of $0.09.
• Options chain surges with 24.4M turnover, as 60-strike puts and calls dominate trading.

Haemonetics’ stock has imploded on Thursday, driven by a Q1 earnings report that exposed revenue declines and margin pressures. The 23% intraday drop—a 17.5-point swing—has ignited a frenzy in options trading, with investors scrambling to hedge or capitalize on the volatility. The medical device sector remains split, as Medtronic (MDT) rallies 1.9%, highlighting divergent market sentiment.

Q1 Earnings Miss and Revenue Decline Spark Sharp Selloff
Haemonetics’ Q1 FY2026 earnings report delivered a one-two punch: GAAP revenue fell 4.4% year-over-year to $321.4M, missing estimates by $3.65M, while non-GAAP EPS of $1.10 trailed the $1.19 consensus. The drag came from the completed CSL contract and Whole Blood divestiture, which masked organic growth in Plasma and Hospital segments. Despite reaffirming full-year guidance, the market punished the stock for near-term revenue declines and margin compression, with operating margin shrinking to 16.8% from 11.8% in Q1 FY2025. The selloff reflects skepticism about management’s ability to offset structural headwinds.

Medical Devices Sector Splits as Medtronic Rises Amid HAE's Slide
While Haemonetics tumbles, the broader medical devices sector remains mixed. Medtronic (MDT), the sector’s bellwether, rose 1.9% on Thursday, buoyed by its diversified portfolio and stable earnings profile. This divergence underscores investor caution toward companies with near-term revenue risks, such as HAE’s contract-driven business model. The sector’s resilience highlights the contrast between high-margin, diversified players and those reliant on transitional growth strategies.

Options Playbook: High-Leverage Puts and Calls for Volatile HAE Move
• RSI: 61.05 (neutral) • MACD: 0.65 (bullish) • 200D MA: $71.83 (above price) • Bollinger Bands: $72.49–$77.56 (price near lower band)

Technical indicators suggest HAE is oversold but trapped in a long-term range. The 200-day average at $71.83 looms as a critical resistance level, while the 30D MA at $75.17 hints at potential short-term support. With RSI at 61, the stock is neither overbought nor oversold, but the bearish engulfing candle and low turnover (5.15% of float) signal a lack of conviction in the rally.

Top Options Picks:
• HAE20250815P60 (Put):
- Strike: $60 • Expiry: 8/15 • IV: 88.71% • Leverage: 17.02% • Delta: -0.489 • Theta: -0.0308 • Gamma: 0.048 • Turnover: $247,019
- IV (high volatility) and gamma (price sensitivity) make this put ideal for a sharp drop. A 5% downside to $55.41 would yield a $4.59 payoff, offering 76% return on premium.
• HAE20250919C60 (Call):
- Strike: $60 • Expiry: 9/19 • IV: 27.34% • Leverage: 27.08% • Delta: 0.511 • Theta: -0.0527 • Gamma: 0.0705 • Turnover: $10,340
- Gamma and theta suggest this call benefits from time decay and price swings. A rebound above $60 could trigger rapid premium gains, though a 5% drop would nullify its value.

Aggressive bulls may consider HAE20250919C60 into a bounce above $60, while bears should prioritize HAE20250815P60 for a short-term breakdown. If $55.3 (52W low) breaks, the selloff could accelerate.

Backtest Haemonetics Stock Performance
The backtest of HAE's performance after an intraday plunge of -23% shows favorable short-to-medium-term gains. The 3-Day win rate is 52.03%, the 10-Day win rate is 53.69%, and the 30-Day win rate is 64.02%. Although the maximum return during the backtest period is only 1.28%, the strategy still achieves positive returns in the majority of tested periods, indicating resilience after a significant downturn.

Act Now: HAE's Volatility Demands Precision as Sector Diverges
Haemonetics’ 23% plunge reflects a market grappling with near-term revenue risks and margin pressures. While the stock remains range-bound, the 52W low at $55.3 and 200D MA at $71.83 define critical thresholds. Investors should monitor the Q1 earnings call for clarity on Plasma segment recovery and Plasma organic growth guidance. Medtronic’s 1.9% rise underscores sector resilience, but HAE’s structural challenges demand caution. Watch for a breakdown below $55.3 or a rebound above $60 to dictate next steps.