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Hologic (HOLX) to Report Q2 Earnings: What's in the Cards?
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Hologic, Inc. (HOLX - Free Report) is slated to report second-quarter fiscal 2023 results on May 1, after the closing bell.
In the last reported quarter, the company’s earnings of $1.07 per share surpassed the Zacks Consensus Estimate by 18.9%. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average surprise being 30.60%.
Let’s see how things have shaped up prior to the announcement.
Factors at Play
Diagnostics
In second-quarter 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 first-quarter earnings update, Hologic noted that the company has nearly 3,250 Panthers instruments placed globally. In the to-be-reported quarter, its performance might have been driven by broad-based growth and fueled by a combination of legacy and newer assays in the portfolio.
During the fiscal first quarter, BV/CV/TV had registered strong growth compared with the prior year as the company grows in the IVD vaginitis market. We believe this trend to have continued in the fiscal second quarter as well.
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.
The Zacks Consensus Estimate for the total Diagnostics’ second-quarter revenues is pegged at $485 million, suggesting a decline of 50.9% 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 HOLX’s Breast Health business as it did in the prior-reported fiscal fourth quarter.
However, 3D Mammography equipment and related service, the launch of new software products based on its investments in artificial intelligence and strength in its interventional franchise via the Brevera relaunch are expected to have boosted HOLX’s revenues in the to-be reported quarter.
The Zacks Consensus Estimate for the segment’s seoncd-quarter revenues is pegged at $324 million, suggesting a rise of 4.5% from the year-ago quarter’s reported figure.
GYN Surgical
Similar to the last reported quarter, HOLX’s GYN Surgical business arm is likely to have gained from strong performance from MyoSure and NovaSure along with increasing contributions from the company’s laparoscopic portfolio of Asessa and Boulder. The business is expected to have registered growth in Surgical segment driven by products like Fluent and NovaSure V5.
The Zacks Consensus Estimate for the segment’s second-quarter revenues is pegged at $141 million, suggesting an increase of 18.8% from the year-ago quarter’s reported figure.
The Estimate Picture
The Zacks Consensus Estimate for total fiscal second-quarter revenues of $967.1 million suggests a decline of 32.6% from the prior-year quarter’s figure.
The consensus estimate for earnings per share is pegged at 88 cents, indicating a decline of 57.5% from the year-ago reported figure.
What Our Model Suggests
Our proven model does not conclusively predict 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 odds of an earnings beat. However, this is not the case here.
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: Hologic currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter, per our model.
Bio-Rad has a 2023 expected earnings growth rate of 10.3%. BIO’s earnings yield of 3.38% compares favorably with the industry’s (2.78%).
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.99% and flaunts a Zacks Rank of #1. Henry Schien is expected to release first-quarter fiscal 2023 results on May 2.
HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched once, the average beat being 2.9%. HSIC’s 2024 growth rate is estimated to be 7.7%.
Teva Pharmaceutical Industries Limited (TEVA - Free Report) currently has an Earnings ESP of +14.97% and a Zacks Rank of #2. TEVA is expected to release first-quarter 2023 results on May 2.
TEVA’s 2024 growth rate is estimated to be 4.4%. TEVA’s earnings yield of 28.74% compares favorably with the industry’s (34.35%).
Image: Bigstock
Hologic (HOLX) to Report Q2 Earnings: What's in the Cards?
Hologic, Inc. (HOLX - Free Report) is slated to report second-quarter fiscal 2023 results on May 1, after the closing bell.
In the last reported quarter, the company’s earnings of $1.07 per share surpassed the Zacks Consensus Estimate by 18.9%. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average surprise being 30.60%.
Let’s see how things have shaped up prior to the announcement.
Factors at Play
Diagnostics
In second-quarter 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 first-quarter earnings update, Hologic noted that the company has nearly 3,250 Panthers instruments placed globally. In the to-be-reported quarter, its performance might have been driven by broad-based growth and fueled by a combination of legacy and newer assays in the portfolio.
During the fiscal first quarter, BV/CV/TV had registered strong growth compared with the prior year as the company grows in the IVD vaginitis market. We believe this trend to have continued in the fiscal second quarter as well.
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.
The Zacks Consensus Estimate for the total Diagnostics’ second-quarter revenues is pegged at $485 million, suggesting a decline of 50.9% 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 HOLX’s Breast Health business as it did in the prior-reported fiscal fourth quarter.
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
However, 3D Mammography equipment and related service, the launch of new software products based on its investments in artificial intelligence and strength in its interventional franchise via the Brevera relaunch are expected to have boosted HOLX’s revenues in the to-be reported quarter.
The Zacks Consensus Estimate for the segment’s seoncd-quarter revenues is pegged at $324 million, suggesting a rise of 4.5% from the year-ago quarter’s reported figure.
GYN Surgical
Similar to the last reported quarter, HOLX’s GYN Surgical business arm is likely to have gained from strong performance from MyoSure and NovaSure along with increasing contributions from the company’s laparoscopic portfolio of Asessa and Boulder. The business is expected to have registered growth in Surgical segment driven by products like Fluent and NovaSure V5.
The Zacks Consensus Estimate for the segment’s second-quarter revenues is pegged at $141 million, suggesting an increase of 18.8% from the year-ago quarter’s reported figure.
The Estimate Picture
The Zacks Consensus Estimate for total fiscal second-quarter revenues of $967.1 million suggests a decline of 32.6% from the prior-year quarter’s figure.
The consensus estimate for earnings per share is pegged at 88 cents, indicating a decline of 57.5% from the year-ago reported figure.
What Our Model Suggests
Our proven model does not conclusively predict 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 odds of an earnings beat. However, this is not the case here.
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: Hologic currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter, per our model.
Bio-Rad Laboratories (BIO - Free Report) has an Earnings ESP of +0.16% and sports a Zacks Rank #1 at present. It is slated to release first-quarter 2023 results on May 4. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bio-Rad has a 2023 expected earnings growth rate of 10.3%. BIO’s earnings yield of 3.38% compares favorably with the industry’s (2.78%).
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.99% and flaunts a Zacks Rank of #1. Henry Schien is expected to release first-quarter fiscal 2023 results on May 2.
HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched once, the average beat being 2.9%. HSIC’s 2024 growth rate is estimated to be 7.7%.
Teva Pharmaceutical Industries Limited (TEVA - Free Report) currently has an Earnings ESP of +14.97% and a Zacks Rank of #2. TEVA is expected to release first-quarter 2023 results on May 2.
TEVA’s 2024 growth rate is estimated to be 4.4%. TEVA’s earnings yield of 28.74% compares favorably with the industry’s (34.35%).
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.