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Hologic (HOLX) to Report Q3 Earnings: What's in the Cards?
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Hologic, Inc. (HOLX - Free Report) is slated to report third-quarter fiscal 2022 results on Jul 27, after the closing bell.
In the last reported quarter, the company’s earnings of $2.07 per share surpassed the Zacks Consensus Estimate by 33.6%. Its earnings surpassed the consensus estimate in all of the trailing four quarters, the average surprise being 49.62%.
Let’s see how things are shaping prior to the announcement.
Factors at Play
Diagnostics
Hologic’s Molecular Diagnostics business is likely to have gained from the growing adoption of Panther instruments. In the fiscal second quarter, the Panther installed base stood at 3,100 instruments worldwide. In May 2022, the company received CE marking for two new molecular assays, Panther Fusion EBV Quant Assay and Panther Fusion BKV Quant Assay. This authorization expanded Hologic’s transplant pathogen monitoring menu on the Panther Fusion system. We expect these developments to boost growth momentum in the Molecular Diagnostics business. Regarding COVID-19 sales, the volatility in testing demand is expected to have significantly hampered Hologic’s revenues in the to-be-reported quarter.
The continued uptake of its vaginitis panel within the virology product line is likely to have been advantageous for the company. The BV CVTV assay is anticipated to have maintained its rally in Q3. Per the company, this assay is on track to become a top-three women's health assay within the molecular diagnostics portfolio. Further, as the effects of the pandemic abate, we expect an uptick in women's wellness visits to provide a favorable boost to its cytology and perinatal businesses.
Breast Health
In recent months, the ongoing semiconductor chips shortage has aggravated due to the persistent supply chain issues and the current geopolitical environment. This is likely to have impacted Hologic’s Breast Health business as it did in the prior-reported fiscal second quarter. The company’s interventional business is likely to have been faced with continued supply chain headwinds related to disposable biopsy needles, hampering its performance.
Despite these challenges, the company noted that the underlying demand for its Breast Health products remained robust, measured by healthy orders and rising backlog growth. This trend is likely to have continued in the fiscal third quarter, benefiting the business arm.
Towards March-end, the company opened its new Innovation Center in Aix-en-Provence, France. This commercial office, training and research and development facility will support the company’s ultrasound, interventional and surgical solutions across the continuum of breast health care. This development is expected to have boosted Hologic’s operations in the fiscal third quarter, adding to its top-line growth.
GYN Surgical
Hologic’s GYN Surgical business arm is likely to have gained from an ongoing rebound in elective procedures with the full-fledged opening up of the economy despite the ongoing COVID concerns. The business is expected to benefit from its acquisitions of Acessa and Bolder Surgical. Similar to the last reported fiscal second quarter, we anticipate strong contributions from Bolder's CoolSeal devices to add to the top line performance. Hologic’s robust surgical product offering, including the NovaSure, MyoSure, Acessa laparoscopic radiofrequency ablation system and the Fluent fluid management system, are likely to have resulted in further gains for the business arm.
The Estimate Picture
The Zacks Consensus Estimate for total fiscal third-quarter revenues of $896.20 million suggests a decline of 23.3% from the prior-year quarter’s figure.
The consensus estimate for earnings per share is pegged at 69 cents, indicating a decline of 48.1% from the year-ago reported figure.
What Our Model Suggests
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has higher chances of beating estimates. However, this is not the case, as you can see:
Earnings ESP: Hologic has an Earnings ESP of 0.00%. 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 #3.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Merck has a long-term earnings growth rate of 10.1%. MRK’s earnings yield of 7.80% compares with the industry’s 7.77%.
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +5.07% and a Zacks Rank of #2. Alcon is expected to release second-quarter 2022 results on Aug 16.
Alcon long-term earnings growth rate is estimated at 14.3%. ALC’s earnings yield of 3.42% compares with the industry’s (7.94%).
QuidelOrtho Corporation (QDEL - Free Report) currently has an Earnings ESP of +9.17% and a Zacks Rank of #2. QuidelOrtho is expected to release second-quarter fiscal 2022 results on Aug 4.
QDEL’s earnings yield of 15.11% compares favorably with the industry’s (-2.50%).
Image: Shutterstock
Hologic (HOLX) to Report Q3 Earnings: What's in the Cards?
Hologic, Inc. (HOLX - Free Report) is slated to report third-quarter fiscal 2022 results on Jul 27, after the closing bell.
In the last reported quarter, the company’s earnings of $2.07 per share surpassed the Zacks Consensus Estimate by 33.6%. Its earnings surpassed the consensus estimate in all of the trailing four quarters, the average surprise being 49.62%.
Let’s see how things are shaping prior to the announcement.
Factors at Play
Diagnostics
Hologic’s Molecular Diagnostics business is likely to have gained from the growing adoption of Panther instruments. In the fiscal second quarter, the Panther installed base stood at 3,100 instruments worldwide. In May 2022, the company received CE marking for two new molecular assays, Panther Fusion EBV Quant Assay and Panther Fusion BKV Quant Assay. This authorization expanded Hologic’s transplant pathogen monitoring menu on the Panther Fusion system. We expect these developments to boost growth momentum in the Molecular Diagnostics business. Regarding COVID-19 sales, the volatility in testing demand is expected to have significantly hampered Hologic’s revenues in the to-be-reported quarter.
The continued uptake of its vaginitis panel within the virology product line is likely to have been advantageous for the company. The BV CVTV assay is anticipated to have maintained its rally in Q3. Per the company, this assay is on track to become a top-three women's health assay within the molecular diagnostics portfolio. Further, as the effects of the pandemic abate, we expect an uptick in women's wellness visits to provide a favorable boost to its cytology and perinatal businesses.
Breast Health
In recent months, the ongoing semiconductor chips shortage has aggravated due to the persistent supply chain issues and the current geopolitical environment. This is likely to have impacted Hologic’s Breast Health business as it did in the prior-reported fiscal second quarter. The company’s interventional business is likely to have been faced with continued supply chain headwinds related to disposable biopsy needles, hampering its performance.
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
Despite these challenges, the company noted that the underlying demand for its Breast Health products remained robust, measured by healthy orders and rising backlog growth. This trend is likely to have continued in the fiscal third quarter, benefiting the business arm.
Towards March-end, the company opened its new Innovation Center in Aix-en-Provence, France. This commercial office, training and research and development facility will support the company’s ultrasound, interventional and surgical solutions across the continuum of breast health care. This development is expected to have boosted Hologic’s operations in the fiscal third quarter, adding to its top-line growth.
GYN Surgical
Hologic’s GYN Surgical business arm is likely to have gained from an ongoing rebound in elective procedures with the full-fledged opening up of the economy despite the ongoing COVID concerns. The business is expected to benefit from its acquisitions of Acessa and Bolder Surgical. Similar to the last reported fiscal second quarter, we anticipate strong contributions from Bolder's CoolSeal devices to add to the top line performance. Hologic’s robust surgical product offering, including the NovaSure, MyoSure, Acessa laparoscopic radiofrequency ablation system and the Fluent fluid management system, are likely to have resulted in further gains for the business arm.
The Estimate Picture
The Zacks Consensus Estimate for total fiscal third-quarter revenues of $896.20 million suggests a decline of 23.3% from the prior-year quarter’s figure.
The consensus estimate for earnings per share is pegged at 69 cents, indicating a decline of 48.1% from the year-ago reported figure.
What Our Model Suggests
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has higher chances of beating estimates. However, this is not the case, as you can see:
Earnings ESP: Hologic has an Earnings ESP of 0.00%. 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 #3.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Merck & Co., Inc. (MRK - Free Report) has an Earnings ESP of +7.18% and a Zacks Rank of #1. The company will release second-quarter 2022 results on Jul 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
Merck has a long-term earnings growth rate of 10.1%. MRK’s earnings yield of 7.80% compares with the industry’s 7.77%.
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +5.07% and a Zacks Rank of #2. Alcon is expected to release second-quarter 2022 results on Aug 16.
Alcon long-term earnings growth rate is estimated at 14.3%. ALC’s earnings yield of 3.42% compares with the industry’s (7.94%).
QuidelOrtho Corporation (QDEL - Free Report) currently has an Earnings ESP of +9.17% and a Zacks Rank of #2. QuidelOrtho is expected to release second-quarter fiscal 2022 results on Aug 4.
QDEL’s earnings yield of 15.11% compares favorably with the industry’s (-2.50%).
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.