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Hologic (HOLX) to Report Q1 Earnings: What's in the Cards?
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Hologic, Inc. (HOLX - Free Report) is slated to report first-quarter fiscal 2023 results on Feb 1, after the closing bell.
In the last reported quarter, the company’s earnings of 82 cents per share surpassed the Zacks Consensus Estimate by 32.3%. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average surprise being 46.08%.
Let’s see how things have shaped up prior to the announcement.
Factors at Play
Diagnostics
In the first quarter of fiscal 2023, Hologic is expected to have witnessed strong growth in the Diagnostics business (excluding COVID) from the growing adoption of Panther instruments and an expanded Panther installed base. During the fourth-quarter earnings update, Hologic noted that the company has nearly 3,250 Panthers instruments placed globally. Its performance might have been driven by both legacy and new assays, namely the BBCVTV vaginitis panel, MGen, CTMG and its respiratory menu on the Panther Fusion.
However, with COVID testing significantly down over the past few months, Hologic’s Molecular Diagnostics business is likely to have been impacted by lower COVID-related sales.
Our model shows a 48.8% year-over-year decline in total Diagnostics revenues in the first quarter of 2023.
The Zacks Consensus Estimate for the total Diagnostics’ first-quarter revenues is pegged at $482 million, suggesting a decline of 49.3% from year-ago quarter’s reported figure.
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 fourth quarter.
In November 2022, Hologic announced that the 3Dimensions mammography system was awarded EUREF Type Test certification by the European Reference Organisation for Quality Assured Breast Screening and Diagnostic Services. It is the first digital breast tomosynthesis (DBT) system to receive such a distinction and one of only nine mammography systems overall to earn certification. The development is likely to have benefited Hologic’s Breast Health business in the to-be-reported quarter.
Our model shows a 12.7% year-over-year decline in Breast Health revenues in the first quarter 2023.
The Zacks Consensus Estimate for the segment’s first-quarter revenues is pegged at $316 million, suggesting a decline of 11.9% from the year-ago quarter’s reported figure.
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 as well as acceleration from new business lines. The business is expected to have benefited from its acquisitions of MyoSure Fluent as well as Bolder and Acessa. Further, similar to the fiscal fourth 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 Q1.
Our model shows a 1.1% year-over-year decline in GYN Surgical revenues in the first quarter Of 2023.
The Zacks Consensus Estimate for the segment’s first-quarter revenues is pegged at $141 million, suggesting an increase of 5.2% from the year-ago quarter’s reported figure.
The Estimate Picture
The Zacks Consensus Estimate for total fiscal first-quarter revenues of $980.9 million suggests a decline of 33.3% from the prior-year quarter’s figure.
The consensus estimate for earnings per share is pegged at 88 cents, indicating a decline of 59.5% from the year-ago reported figure.
What Our Model Suggests
Our proven model predicts an earnings beat for Hologic this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Hologic has an Earnings ESP of +3.13%. 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 #2.
Other Stocks to Consider
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Cardinal Health has a long-term expected earnings growth rate of 11.7%. Cardinal Health’s earnings yield of 6.87% compares favorably with the industry’s 4.34%.
McKesson Corporation (MCK - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter fiscal 2023 results on Feb 1.
MCK’s long-term historical earnings growth rate is estimated at 10.1%. MCK’s earnings yield of 6.49% compares favorably with the industry’s 4.34%.
Laboratory Corporation of America Holdings or LabCorp (LH - Free Report) currently has an Earnings ESP of +2.67% and a Zacks Rank of #2. LabCorp is expected to release fourth-quarter 2022 results on Feb 9.
LabCorp’s long-term historical earnings growth rate is estimated at 26.1%. LabCorp’s earnings yield of 7.02% compares favorably with the industry’s 4.34%.
Image: Bigstock
Hologic (HOLX) to Report Q1 Earnings: What's in the Cards?
Hologic, Inc. (HOLX - Free Report) is slated to report first-quarter fiscal 2023 results on Feb 1, after the closing bell.
In the last reported quarter, the company’s earnings of 82 cents per share surpassed the Zacks Consensus Estimate by 32.3%. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average surprise being 46.08%.
Let’s see how things have shaped up prior to the announcement.
Factors at Play
Diagnostics
In the first quarter of fiscal 2023, Hologic is expected to have witnessed strong growth in the Diagnostics business (excluding COVID) from the growing adoption of Panther instruments and an expanded Panther installed base. During the fourth-quarter earnings update, Hologic noted that the company has nearly 3,250 Panthers instruments placed globally. Its performance might have been driven by both legacy and new assays, namely the BBCVTV vaginitis panel, MGen, CTMG and its respiratory menu on the Panther Fusion.
However, with COVID testing significantly down over the past few months, Hologic’s Molecular Diagnostics business is likely to have been impacted by lower COVID-related sales.
Our model shows a 48.8% year-over-year decline in total Diagnostics revenues in the first quarter of 2023.
The Zacks Consensus Estimate for the total Diagnostics’ first-quarter revenues is pegged at $482 million, suggesting a decline of 49.3% from year-ago quarter’s reported figure.
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 fourth quarter.
In November 2022, Hologic announced that the 3Dimensions mammography system was awarded EUREF Type Test certification by the European Reference Organisation for Quality Assured Breast Screening and Diagnostic Services. It is the first digital breast tomosynthesis (DBT) system to receive such a distinction and one of only nine mammography systems overall to earn certification. The development is likely to have benefited Hologic’s Breast Health business in the to-be-reported quarter.
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
Our model shows a 12.7% year-over-year decline in Breast Health revenues in the first quarter 2023.
The Zacks Consensus Estimate for the segment’s first-quarter revenues is pegged at $316 million, suggesting a decline of 11.9% from the year-ago quarter’s reported figure.
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 as well as acceleration from new business lines. The business is expected to have benefited from its acquisitions of MyoSure Fluent as well as Bolder and Acessa. Further, similar to the fiscal fourth 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 Q1.
Our model shows a 1.1% year-over-year decline in GYN Surgical revenues in the first quarter Of 2023.
The Zacks Consensus Estimate for the segment’s first-quarter revenues is pegged at $141 million, suggesting an increase of 5.2% from the year-ago quarter’s reported figure.
The Estimate Picture
The Zacks Consensus Estimate for total fiscal first-quarter revenues of $980.9 million suggests a decline of 33.3% from the prior-year quarter’s figure.
The consensus estimate for earnings per share is pegged at 88 cents, indicating a decline of 59.5% from the year-ago reported figure.
What Our Model Suggests
Our proven model predicts an earnings beat for Hologic this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Hologic has an Earnings ESP of +3.13%. 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 #2.
Other Stocks to Consider
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Cardinal Health (CAH - Free Report) has an Earnings ESP of +5.75% and a Zacks Rank of #2. The company will release fourth-quarter 2022 results on Feb 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardinal Health has a long-term expected earnings growth rate of 11.7%. Cardinal Health’s earnings yield of 6.87% compares favorably with the industry’s 4.34%.
McKesson Corporation (MCK - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter fiscal 2023 results on Feb 1.
MCK’s long-term historical earnings growth rate is estimated at 10.1%. MCK’s earnings yield of 6.49% compares favorably with the industry’s 4.34%.
Laboratory Corporation of America Holdings or LabCorp (LH - Free Report) currently has an Earnings ESP of +2.67% and a Zacks Rank of #2. LabCorp is expected to release fourth-quarter 2022 results on Feb 9.
LabCorp’s long-term historical earnings growth rate is estimated at 26.1%. LabCorp’s earnings yield of 7.02% compares favorably with the industry’s 4.34%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.