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Non-COVID Diagnostics Sales to Aid Hologic (HOLX) Q1 Earnings
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Hologic, Inc.’s (HOLX - Free Report) diagnostics business is likely to have witnessed an increase in non-COVID Diagnostics business, banking on growing Panther instruments worldwide. The GYN Surgical arm is expected to have gained from an ongoing rebound in elective procedures.
We anticipate the company’s first-quarter fiscal 2022 results, scheduled for release on Feb 1 after the closing bell, to reflect these aspects.
Click here to know how the company’s overall fiscal first-quarter performance is expected to be.
Diagnostics
Hologic’s Molecular Diagnostics sales for the fiscal first quarter are likely to have been impacted by a significant drop in the demand for COVID-19 testing. However, the company seems optimistic about the benefits of non-COVID assays on the Panther system. On the fiscal Q4 earnings call, Hologic noted strong global diagnostic business growth amid the adversities. During the fourth-quarter earnings update, Hologic noted that the company has nearly 3,250 Panthers instruments placed globally. This might have significantly boosted the segment’s revenues in the quarter to be reported.
Per October 2022 update, Hologic is witnessing continued strong sequential growth from Biotheranostics and incremental contribution from Mobidiag internationally. The first-quarter performance is expected to have been driven by both legacy and new assays, namely the BBCVTV vaginitis panel, MGen, CTMG and respiratory menu on the Panther Fusion.
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. During Q4, Hologic registered a strong performance from the surgical franchise led by MyoSure and Fluent, with contributions from recent acquisitions. We expect Hologic to have continued benefiting from the acquisitions of MyoSure Fluent and Bolder and Acessa in the to-be-reported quarter as well.
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.
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%.
Image: Bigstock
Non-COVID Diagnostics Sales to Aid Hologic (HOLX) Q1 Earnings
Hologic, Inc.’s (HOLX - Free Report) diagnostics business is likely to have witnessed an increase in non-COVID Diagnostics business, banking on growing Panther instruments worldwide. The GYN Surgical arm is expected to have gained from an ongoing rebound in elective procedures.
We anticipate the company’s first-quarter fiscal 2022 results, scheduled for release on Feb 1 after the closing bell, to reflect these aspects.
Click here to know how the company’s overall fiscal first-quarter performance is expected to be.
Diagnostics
Hologic’s Molecular Diagnostics sales for the fiscal first quarter are likely to have been impacted by a significant drop in the demand for COVID-19 testing. However, the company seems optimistic about the benefits of non-COVID assays on the Panther system. On the fiscal Q4 earnings call, Hologic noted strong global diagnostic business growth amid the adversities. During the fourth-quarter earnings update, Hologic noted that the company has nearly 3,250 Panthers instruments placed globally. This might have significantly boosted the segment’s revenues in the quarter to be reported.
Per October 2022 update, Hologic is witnessing continued strong sequential growth from Biotheranostics and incremental contribution from Mobidiag internationally. The first-quarter performance is expected to have been driven by both legacy and new assays, namely the BBCVTV vaginitis panel, MGen, CTMG and respiratory menu on the Panther Fusion.
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. During Q4, Hologic registered a strong performance from the surgical franchise led by MyoSure and Fluent, with contributions from recent acquisitions. We expect Hologic to have continued benefiting from the acquisitions of MyoSure Fluent and Bolder and Acessa in the to-be-reported quarter as well.
Hologic, Inc. Price and EPS Surprise
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.
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.