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Hologic (HOLX) to Report Q4 Earnings: What's in the Cards?
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Hologic, Inc. (HOLX - Free Report) is slated to report fourth-quarter fiscal 2022 results on Oct 31, after the closing bell.
In the last reported quarter, the company’s earnings of 95 cents per share surpassed the Zacks Consensus Estimate by 37.68%. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average surprise being 54.09%.
Let’s see how things have shaped up prior to the announcement.
Factors at Play
Diagnostics
With COVID testing significantly down over the past few months, Hologic’s Molecular Diagnostics business is likely to have registered a sales decline in the fiscal fourth quarter. However, Hologic might have gained from the growing adoption of Panther instruments. The company’s efforts to validate and run more non-COVID assays on Panther systems might have offset the COVID-led loss to some extent. Further, its performance might have been driven bya combination of both legacy and new assays, namely the BBCVTV vaginitis panel, MGen, CTMG and its respiratory menu on the Panther Fusion. In this regard, in the last reported quarter, Hologic’s vaginitis panel continued to outperform and deliver impressive growth, based on which the company noted that this vaginitis panel is well-positioned to become a top-three women's health assay within the molecular diagnostics portfolio. This might once again get reflected in the fiscal Q4 results.
Breast Health
In recent months, the ongoing semiconductor chip shortage has aggravated due to 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 third quarter. The company’s interventional business has been facing 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 fourth quarter, benefiting the business arm.
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. The business is expected to have benefited from its acquisitions of Acessa and Bolder Surgical. Accessa's growth is driven primarily by two factors: first, its efforts to increase patient-covered lives to 84% compared with 26% when Hologic first acquired the business about two years ago. Second, its growth is also driven by more physician access to conduct monitored cases. Further, similar to the fiscal third quarter, we anticipate strong contributions from Bolder's CoolSeal devices to have added to the top-line performance. Hologic’s robust surgical product offerings, 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 in Q4.
The Estimate Picture
The Zacks Consensus Estimate for total fiscal fourth-quarter revenues of $866.8 million suggests a decline of 34.2% from the prior-year quarter’s figure.
The consensus estimate for earnings per share is pegged at 62 cents, indicating a decline of 61.5% 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 #4 (Sell).
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:
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana (HUM - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of #1. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
Image: Bigstock
Hologic (HOLX) to Report Q4 Earnings: What's in the Cards?
Hologic, Inc. (HOLX - Free Report) is slated to report fourth-quarter fiscal 2022 results on Oct 31, after the closing bell.
In the last reported quarter, the company’s earnings of 95 cents per share surpassed the Zacks Consensus Estimate by 37.68%. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average surprise being 54.09%.
Let’s see how things have shaped up prior to the announcement.
Factors at Play
Diagnostics
With COVID testing significantly down over the past few months, Hologic’s Molecular Diagnostics business is likely to have registered a sales decline in the fiscal fourth quarter. However, Hologic might have gained from the growing adoption of Panther instruments. The company’s efforts to validate and run more non-COVID assays on Panther systems might have offset the COVID-led loss to some extent. Further, its performance might have been driven bya combination of both legacy and new assays, namely the BBCVTV vaginitis panel, MGen, CTMG and its respiratory menu on the Panther Fusion. In this regard, in the last reported quarter, Hologic’s vaginitis panel continued to outperform and deliver impressive growth, based on which the company noted that this vaginitis panel is well-positioned to become a top-three women's health assay within the molecular diagnostics portfolio. This might once again get reflected in the fiscal Q4 results.
Breast Health
In recent months, the ongoing semiconductor chip shortage has aggravated due to 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 third quarter. The company’s interventional business has been facing 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 fourth quarter, benefiting the business arm.
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. The business is expected to have benefited from its acquisitions of Acessa and Bolder Surgical. Accessa's growth is driven primarily by two factors: first, its efforts to increase patient-covered lives to 84% compared with 26% when Hologic first acquired the business about two years ago. Second, its growth is also driven by more physician access to conduct monitored cases. Further, similar to the fiscal third quarter, we anticipate strong contributions from Bolder's CoolSeal devices to have added to the top-line performance. Hologic’s robust surgical product offerings, 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 in Q4.
The Estimate Picture
The Zacks Consensus Estimate for total fiscal fourth-quarter revenues of $866.8 million suggests a decline of 34.2% from the prior-year quarter’s figure.
The consensus estimate for earnings per share is pegged at 62 cents, indicating a decline of 61.5% 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 #4 (Sell).
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:
Charles River Laboratories International (CRL - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of #3. The company will release third-quarter 2022 results on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana (HUM - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of #1. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.