Haemonetics Corporation HAE reported adjusted earnings per share (EPS) of 37 cents in the fourth quarter of fiscal 2016, missing the Zacks Consensus Estimate by 19.6%. Moreover, adjusted EPS dropped 21% from the year-ago quarter.On a reported basis, Haemonetics posted net loss of $8.8 million or 17 cents per share, substantially wider than the year-ago quarter’s net loss of $2.9 million or 6 cents per share.Fiscal 2016 adjusted EPS came in at $1.63, down 11.9% from the comparable year-ago period. Haemonetics Corporation (HAE) EPS BNRI & Surprise Percent - Last 5 Quarters | FindTheCompany Total RevenueRevenues grew 7% year over year (up 10% at constant exchange rate or CER benefiting 6.8% from the inclusion of a 53rd week) to $243.2 million in the reported quarter, but missed the Zacks Consensus Estimate of $245 million. According to management, the year-over-year improvement was primarily driven by strong performance of the company’s growth franchises of Plasma and Hemostasis Management, or TEG. These two business franchises delivered $17 million of revenue growth in the fourth quarter.Full-year revenues came in at $910 million, flat year over year (up 3% at CER).Revenues by Product CategoriesIn the Disposables product category (86.3% of revenues), which comprises Plasma, Blood center and Hospital Disposables, Haemonetics reported revenues of $209.7 million, up 7.7% year over year. This improvement is primarily attributable to the strong performance of Plasma disposables (up 19.7%), which outweighed the sluggish performances in Blood center disposables (up 0.2%) and Hospital disposables (down 0.7%).Software Solutions revenues were up 8.6% at $19.7 million (up 10% at CER).Equipment and Other revenues increased 1.5% (up 2% at CER) year over year to $13.9 million.MarginsHaemonetics’ fourth-quarter adjusted gross margin was 41.1%, a 760 basis-point contraction. The quarter witnessed huge margin deterioration primarily due to currency headwinds, Italian rebate and inventory-related charges that impacted gross margin negatively by 490 basis points. The balance of the decline is attributable to the donor inventory valuation reserves.Adjusted operating income was $26 million in the fourth quarter, down $9 million, including a $4 million headwind attributable to currency. Adjusted operating margin was 10.6% in the quarter, a contraction of 490 basis points.Financial PositionHaemonetics exited fiscal 2016 with cash and cash equivalents of $115.1 million, compared with $160.7 million at the end of fiscal 2015. Capital expenditure was $102.4 million for the fiscal year, down from $122.2 million in the comparable year-ago period.Haemonetics generated operating cash flow of $121.9 million at the end of fiscal 2016, compared to the year-ago figure of $127.2 million. At the end of fiscal 2016, Haemonetics reported free cash flow (before transformation, restructuring costs and VCC capital expenditures) of $58 million, compared to $97.1 million in the comparable year-ago period. In the fiscal fourth quarter, management bought back shares worth $61 million in the open market.Fiscal 2017 GuidanceHaemonetics expects to provide its fiscal 2017 guidance in its annual Investor Day event on May 10, 2016.Our TakeHaemonetics delivered a dismal fourth-quarter fiscal 2016 performance with both EPS and revenues failing to meet the mark. The year-over-year decline in earnings also adds to our disappointment. Unfavorable foreign currency fluctuations primarily played spoilsport. However, on a brighter note, Haemonetics witnessed positive top-line improvement across all geographies at CER, except in Europe.Product category-wise, while the Plasma disposables business retained its strong growth during the reported quarter, a continued challenging blood center disposable market added to our concerns. Going forward, in fiscal 2017, management still expects currency to be a significant dampener for growth; while the Plasma and TEG business are expected to deliver significant growth. Alongside, the company should continue generating strong balance sheet and free cash flow figures. Zacks RankHaemonetics currently carries a Zacks Rank #4 (Sell). Some better-ranked medical stocks are Baxter International Inc. BAX, Cardiovascular Systems Inc. CSII and NuVasive, Inc. NUVA. All the three stocks hold a Zacks Ranks #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BAXTER INTL (BAX): Free Stock Analysis Report HAEMONETICS CP (HAE): Free Stock Analysis Report NUVASIVE INC (NUVA): Free Stock Analysis Report CARDIOVASCLR SY (CSII): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research