Hologic, Inc.’s HOLX GYN Surgical business is likely to have witnessed strong performance — owing to MyoSure and NovaSure — and increasing contributions from the company’s laparoscopic portfolio of Asessa and Boulder. The continued rebound in elective procedure is likely to have boosted the company’s segmental growth.
We anticipate HOLX’s second-quarter fiscal 2023 results, scheduled for release on May 1 after the closing bell, to reflect these aspects.
Click here to know how the company’s overall fiscal second-quarter performance is expected to be.
Similar to the last reported quarter, HOLX’s GYN Surgical business arm is likely to have gained from strong performance from MyoSure and NovaSure. Also, increasing contributions from the company’s laparoscopic portfolio of Asessa and Boulder are likely to have supported the same.
Growth in the segment is also expected to have driven by products like Fluent and NovaSure V5. With Fluent, Hologic created an effective stand-alone solution to hysteroscopic fluid management. With the NovaSure V5 line extension, the business has demonstrated that even the best can get better.
The assessor method and the more audacious advanced vessel sealing portfolio, which were acquired, are likely to have diversified and accelerated the division's growth trajectory. Hologic obtained both these laparoscopic tools during COVID periods. It has now added them to its former hysteroscopic-only offering. During the first-quarter earnings update, Hologic noted that it is expanding the market for Acessa, a novel radio frequency fibroid elimination technology and enhancing payer coverage with the introduction of advanced sealing portfolio to the OB/GYN market in Boulder by leveraging its extensive surgical sales staff to break into this untapped area. We believe this effort of Hologic’s to have made significant contribution to the company’s revenues in the to-be-reported quarter.
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
In February 2023, Hologic announced that Canada and Europe approved the NovaSure V5 global endometrial ablation (GEA) device. This new version improved features that are intended to address a variety of cervical and uterine anatomies. The device expands on NovaSure's stellar track record, which includes 3 million people who have benefited from the technology. This development is expected to have contributed to the company’s second-quarter performance backed by a strong market adoption.
In second-quarter fiscal 2023, Hologic is expected to have witnessed solid 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. The recently-acquired Biotheranostics, Diagenode and Mobidiag are expected to have driven segmental revenues in the fiscal second quarter.
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 has an Earnings ESP of +0.16% and sports a Zacks Rank #2 (Buy) 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 (Strong Buy) 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 has an Earnings ESP of +0.99% and flaunts a Zacks Rank of #2. 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 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%).
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