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GYN Surgical Division Likely to Drive Hologic's Q2 Earnings

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Hologic, Inc.’s (HOLX - Free Report)   fiscal 2025 second-quarter financial results, set to release on May 1 after the market closes, will likely see a solid performance of its GYN Surgical segment driven by its International strength. Molecular Diagnostics performance is expected to have strongly contributed to the Diagnostics division’s growth. In Breast Health, steady service revenues are expected to have helped offset the capital equipment softness.

Meanwhile, check out our analysis to determine if the stock is worth adding before Q2 earnings.

HOLX’s Segments in Detail

GYN Surgical

We expect the division to be the top performer in the fiscal 2025 second quarter, led by the ongoing strength in its International business, which saw a 20% jump in the previous quarter. Sales of Hologic’s MyoSure and NovaSure devices in Europe likely increased, fueled by the successful execution of its go-direct strategy and an improved reimbursement landscape. Additionally, the U.S. contributions to the related Fluent fluid management system are likely to have aided the growth.

In January 2025, Hologic closed the tuck-in acquisition of Gynesonics into the Surgical portfolio, adding a highly minimally invasive radio frequency ablation tool used to treat uterine fibroids that are less accessible by MyoSure or Accesa. With this addition, sales likely accelerated, leveraging the company’s large GYN sales force, boosting the overall revenue growth in the second quarter.

Our model projects GYN Surgical revenues to increase 3% in the second quarter of fiscal 2025 from the comparable 2024 period.

Diagnostics

The division is expected to have delivered a strong performance in second-quarter fiscal 2025, driven by its core molecular diagnostics business. Ongoing adoption of the BV/CV/TV assay on the Panther platform likely led to this growth, consistent with the past months. Additionally, biotheranostics may have continued to post accretive growth from the expanding use and coverage of the breast cancer index test. Additionally, the respiratory 4-plex, COVID/Flu A/B/RSV assay may have contributed to Diagnsotics’ growth in the second quarter.

Hologic, Inc. Price and EPS Surprise

Hologic, Inc. Price and EPS Surprise

Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote

In February 2025, Hologic’s Aptima SARS-CoV-2 assay was granted 510(k) clearance by the FDA, building on its Emergency Use Authorization status in May 2020. Having played a pivotal role in addressing critical testing needs during the pandemic, full FDA clearance likely helped laboratories and clinicians with continued confidence in the test to make informed decisions about patient treatment and healthcare resource management.

The cytology and perinatal business also may have posted solid growth in the quarter, mainly from an increase in ThinPrep Pap Test sales volumes in the United States.

Our model projects modest 0.5% growth in the Diagnostics segment revenues in the to-be-reported quarter.

Breast Health

The segment has historically been a strong performer but reported disappointing sales in the previous quarter due to capital equipment softness. Hologic revised its expectations, now projecting 2025 to be a softer market for gantry placements, after its initial view was clouded by strong mammography growth post-chip shortage. We expect this trend to have reflected in the second quarter as well, pressuring the segment’s overall growth.

However, service revenues likely remained solid, building on its first-quarter momentum, wherein it accounted for 40% of Breast Health sales. Hologic is likely to have benefited from its Interventional breast business, supported by the addition of Endomagnetics. Its market-leading product lines and research and development capabilities are expected to have enhanced the company’s existing portfolio. Moreover, in February 2025, Hologic received the CE mark for its Affirm Contrast Biopsy Software, expanding the solution’s access across Europe. Already cleared by the FDA back in October 2020, the innovative technology combines contrast-enhanced diagnostic capabilities with accurate lesion detection to help streamline workflow and accelerate biopsy procedures.

According to our model, the Breast Health segment revenues are expected to decrease 3.6% in second-quarter fiscal 2025.

Earnings Whispers for HOLX Stock

Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is not the case here:

HOLX’s 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.

HOLX’s Zacks Rank: Hologic currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Top MedTech Picks

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:

ANI Pharmaceuticals (ANIP - Free Report) has an Earnings ESP of +0.86% and a Zacks Rank #1. The company is slated to release first-quarter 2025 results on May 9. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANIP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.32%. The Zacks Consensus Estimate for the company’s first-quarter EPS is expected to increase 30.6% from the year-ago quarter figure. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Cencora (COR - Free Report) has an Earnings ESP of +0.91% and a Zacks Rank #2. The company is slated to release second-quarter fiscal 2025 results on May 7.

The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 4.94%. The Zacks Consensus Estimate for COR’s fiscal second-quarter EPS is expected to rise 7.1% from the year-ago reported figure.

Hims & Hers Health (HIMS - Free Report) has an Earnings ESP of +115.69% and a Zacks Rank #2. The company is slated to release first-quarter 2025 results on May 5.

HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 40.42%. The Zacks Consensus Estimate for Hims & Hers Health’s first-quarter EPS is expected to increase by 180% from the year-ago quarter figure.


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