Hologic (HOLX) Q4 Earnings Might Rise on 7.7% Breast Health Growth
Hologic Inc. HOLX Breast Health segment is likely to have witnessed strong performance owing to improved semiconductor chip availability. Exceptional demand for clinically differentiated mammography instruments remains high.
The growing adoption of Panther instruments and an expanded Panther installed base are likely to have boosted the company’s growth.
We anticipate HOLX’s fourth-quarter fiscal 2023 performance, scheduled for release on Nov 9 after the closing bell, to reflect these aspects.
Click here to know how the company’s overall fiscal third-quarter performance is expected to be.
Breast Health
Bio-Rad is witnessing an improving trend in semiconductor chip availability, allowing the delivery of more gantries. Exceptional demand for clinically differentiated mammography instruments remains high. We believe these trends to have continued in the fiscal fourth quarter as well.
In the third quarter of fiscal 2023, the Breast Health arm registered strong growth primarily driven by increased volumes of digital mammography systems, especially 3D Dimensions systems and related workstation and workflow products, including software. Increased Trident systems unit sales and higher Faxitron breast-conserving surgery products aided growth. The upside can be attributed to improvement in supply chain constraints related to electronic components, primarily semiconductor chips. The company is also witnessing increased sales of its interventional breast solutions products, driven by Brevera systems and related needles. We believe these trends will continue through the fiscal fourth quarter as well, thus driving top-line growth.
In September 2023, Bio-Rad entered into an international collaboration with Bayer to offer contrast-enhanced mammography (CEM) solutions. The partnership will enhance the detection of breast cancer for women in multiple countries across the European, Canadian and Asia Pacific regions. We believe this collaboration to have boosted the company’s performance in the fourth quarter.
Per our model, Hologic’s Breast Health’s business revenues are projected at $296.3 million for the fiscal fourth quarter, up 7.7% year over year.
Diagnostics
In the quarter to be reported, Hologic is expected to have witnessed growth in the Diagnostics business (excluding COVID) from the growing adoption of Panther instruments and an expanded Panther installed base. The company’s expanded global installed base of more than 3,250 Panthers represents the catalyst for the division's sustained growth. The superior workflow of Panther, combined with a broad menu of nearly 20 FDA-approved assays across Panther and Panther Fusion systems, creates tremendous value for customers and differentiates it from competitors. We believe these growth catalysts to have driven the company’s performance in the quarter to be reported.
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
Similar to the last reported quarter, the Diagnostics business is expected to have declined globally compared with the prior year’s levels due to significantly lower COVID testing.
Per our model, Hologic’s Diagnostic’s business revenues are projected at $488.3 million in Q4, a 6.2% decline year over year.
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 +1.35%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently sports a Zacks Rank #4 (Sell).
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.
Insulet PODD has an Earnings ESP of +6.61% and a Zacks Rank #2. The company will release third-quarter 2023 results on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Insulet has a long-term expected earnings growth rate of 35.7%. PODD has an earnings yield of 1.13% against the industry’s -2.58%.
Acadia Pharmaceuticals ACAD has an Earnings ESP of +6.76% and a Zacks Rank #2. The company is scheduled to release third-quarter 2023 results on Nov 2.
ACAD has an expected long-term earnings growth rate of 43.4%. In the trailing four quarters, the company delivered an average earnings surprise of 20.33%.
Medpace MEDP currently has an Earnings ESP of +2.29% and a Zacks Rank #2. The company recently released its third-quarter 2023 results on Oct 23.
Medpace has an expected earnings growth rate of 17.9% for the next year. MEDP’s earnings beat estimates in all the trailing four quarters, the average surprise being 14.62%.
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