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Hologic (HOLX) to Report Q3 Earnings: What's in the Cards?
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Hologic, Inc.’s (HOLX - Free Report) is slated to report third-quarter fiscal 2021 results on Jul 28, after the closing bell.
In the last reported quarter, the company’s earnings of $2.59 per share lagged the Zacks Consensus Estimate by 1.2%. Its earnings surpassed the consensus estimate in three of the last four quarters and missed in one, the average surprise being 52.62%.
Let’s see how things are shaping prior to the announcement.
Factors at Play
Diagnostics
With the normalization of economy and drop in COVID-19 case count, Hologic remains highly uncertain about the demand for its COVID-19 testing line. Like other players in the industry, over the past few months, the company has been witnessing declining sales of COVID-19 tests in the United States, following the mass vaccine rollout. This might have significantly affected the company’s COVID-19 testing revenues in the fiscal third quarter.
However, similar to the last reported quarter, the company expects global Molecular Diagnostics revenues for the fiscal third quarter to reflect benefits of additional tests onto Hologic’s Panther-installed base. The company’s Panther and Panther Fusion instruments have likely maintained momentum on continued adoption, thus contributing to the top line. The Molecular Diagnostics segment is expected to have witnessed global growth in the quarter on strength in the Panther system.
The Hologic FDA’s pre market approved ThinPrep Genesis processor is likely to have continued showing high market acceptance through the fiscal third quarter, thus boosting revenues.
During the last-quarter earnings call, Hologic noted that Diagenode (acquired in March 2021) partially contributed to the company’s revenue growth, enabling Hologic to offer a broader and more differentiated menu of molecular diagnostic tests. We expect Diagenode to have contributed significantly to the company’s third-quarter revenue growth.
The Zacks Consensus Estimate for Molecular Diagnostics’ revenues is pegged at $438 million, suggesting a decline of 4.8% from the year-ago quarter’s reported figure.
Breast Health
Management, during the last-quarter earnings call, observed that the Breast Health arm has been witnessing a faster-than-expected return to growth despite the pandemic-led challenging business climate. We are optimistic about an improved sequential performance by the segment during fiscal third quarter, given the company’s ongoing efforts to diversify the business across the patient continuum of care.
Further, the launch of new software products based on the investments in artificial intelligence is expected to reflect on fiscal third-quarter results. Recently, the company strengthened the interventional franchise by relaunching Brevera and buying Somatex-- a long time partner and leading developer of breast cancer markers. This development is also expected to have contributed to the company’s Breast Health business in the to-be reported quarter.
The Zacks Consensus Estimate for Breast Imaging’s revenues is pegged at $276 million, indicating an uptick of 43% from the prior-year quarter’s figure.
GYN Surgical
In the last-reported quarter, Hologic’s GYN Surgical business arm registered strong growth driven by improving elective surgical volume throughout the quarter. This is likely to have continued during third-quarter fiscal 2021 as the company is in the process to address the pent-up demand from hospital customers.
Hologic is expected to have continued to gain during the to-be-reported quarter from the robust adoption of its ProVu laparoscopic radio frequency ablation system (used for the treatment of uterine fibroids) along with new hysteroscopes and Acessa's laparoscopic radio frequency ablation system. Further, the quarterly performance is expected to have been boosted by the European launch of its CE-marked Fluent fluid management system in January this year.
The Zacks Consensus Estimate for GYN Surgical’s revenues is pegged at $118 million, indicating a surge of 126.9% from the prior-year quarter’s figure.
The Estimate Picture
The Zacks Consensus Estimate for total fiscal third-quarter revenues of $1.03 billion suggests growth of 25.7% from the prior-year quarter’s figure.
The consensus estimate for earnings per share is pegged at $1.11, indicating a rise of 48% from the year-ago reported figure.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: Hologic has an Earnings ESP of -0.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
Hill-Rom Holdings, Inc. has an Earnings ESP of +0.56% and a Zacks Rank #2, currently. The stock is slated to release third-quarter fiscal 2021 results on Jul 30. You can see the complete list of today’s Zacks #1 Rank stocks here.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.91% and a Zacks Rank of 2, at present. The stock is expected to release second-quarter 2021 results on Aug 3.
Laboratory Corporation of America Holdings (LH - Free Report) has an Earnings ESP of +6.53% and a Zacks Rank of 2, at present. The company is scheduled to release second-quarter 2021 results on Jul 29.
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Hologic (HOLX) to Report Q3 Earnings: What's in the Cards?
Hologic, Inc.’s (HOLX - Free Report) is slated to report third-quarter fiscal 2021 results on Jul 28, after the closing bell.
In the last reported quarter, the company’s earnings of $2.59 per share lagged the Zacks Consensus Estimate by 1.2%. Its earnings surpassed the consensus estimate in three of the last four quarters and missed in one, the average surprise being 52.62%.
Let’s see how things are shaping prior to the announcement.
Factors at Play
Diagnostics
With the normalization of economy and drop in COVID-19 case count, Hologic remains highly uncertain about the demand for its COVID-19 testing line. Like other players in the industry, over the past few months, the company has been witnessing declining sales of COVID-19 tests in the United States, following the mass vaccine rollout. This might have significantly affected the company’s COVID-19 testing revenues in the fiscal third quarter.
However, similar to the last reported quarter, the company expects global Molecular Diagnostics revenues for the fiscal third quarter to reflect benefits of additional tests onto Hologic’s Panther-installed base. The company’s Panther and Panther Fusion instruments have likely maintained momentum on continued adoption, thus contributing to the top line. The Molecular Diagnostics segment is expected to have witnessed global growth in the quarter on strength in the Panther system.
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
The Hologic FDA’s pre market approved ThinPrep Genesis processor is likely to have continued showing high market acceptance through the fiscal third quarter, thus boosting revenues.
During the last-quarter earnings call, Hologic noted that Diagenode (acquired in March 2021) partially contributed to the company’s revenue growth, enabling Hologic to offer a broader and more differentiated menu of molecular diagnostic tests. We expect Diagenode to have contributed significantly to the company’s third-quarter revenue growth.
The Zacks Consensus Estimate for Molecular Diagnostics’ revenues is pegged at $438 million, suggesting a decline of 4.8% from the year-ago quarter’s reported figure.
Breast Health
Management, during the last-quarter earnings call, observed that the Breast Health arm has been witnessing a faster-than-expected return to growth despite the pandemic-led challenging business climate. We are optimistic about an improved sequential performance by the segment during fiscal third quarter, given the company’s ongoing efforts to diversify the business across the patient continuum of care.
Further, the launch of new software products based on the investments in artificial intelligence is expected to reflect on fiscal third-quarter results. Recently, the company strengthened the interventional franchise by relaunching Brevera and buying Somatex-- a long time partner and leading developer of breast cancer markers. This development is also expected to have contributed to the company’s Breast Health business in the to-be reported quarter.
The Zacks Consensus Estimate for Breast Imaging’s revenues is pegged at $276 million, indicating an uptick of 43% from the prior-year quarter’s figure.
GYN Surgical
In the last-reported quarter, Hologic’s GYN Surgical business arm registered strong growth driven by improving elective surgical volume throughout the quarter. This is likely to have continued during third-quarter fiscal 2021 as the company is in the process to address the pent-up demand from hospital customers.
Hologic is expected to have continued to gain during the to-be-reported quarter from the robust adoption of its ProVu laparoscopic radio frequency ablation system (used for the treatment of uterine fibroids) along with new hysteroscopes and Acessa's laparoscopic radio frequency ablation system. Further, the quarterly performance is expected to have been boosted by the European launch of its CE-marked Fluent fluid management system in January this year.
The Zacks Consensus Estimate for GYN Surgical’s revenues is pegged at $118 million, indicating a surge of 126.9% from the prior-year quarter’s figure.
The Estimate Picture
The Zacks Consensus Estimate for total fiscal third-quarter revenues of $1.03 billion suggests growth of 25.7% from the prior-year quarter’s figure.
The consensus estimate for earnings per share is pegged at $1.11, indicating a rise of 48% from the year-ago reported figure.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: Hologic has an Earnings ESP of -0.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
Hill-Rom Holdings, Inc. has an Earnings ESP of +0.56% and a Zacks Rank #2, currently. The stock is slated to release third-quarter fiscal 2021 results on Jul 30. You can see the complete list of today’s Zacks #1 Rank stocks here.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.91% and a Zacks Rank of 2, at present. The stock is expected to release second-quarter 2021 results on Aug 3.
Laboratory Corporation of America Holdings (LH - Free Report) has an Earnings ESP of +6.53% and a Zacks Rank of 2, at present. The company is scheduled to release second-quarter 2021 results on Jul 29.