Hologic (HOLX) to Report Q2 Earnings: What's in the Cards?
Hologic, Inc. HOLX is slated to report second-quarter fiscal 2022 results on Apr 27, after the closing bell.
In the last-reported quarter, the company’s earnings of $2.17 per share surpassed the Zacks Consensus Estimate by 80.8%. Its earnings surpassed the consensus estimate in three of the last four quarters and missed the same in one, the average surprise being 40.95%.
Let’s see how things are shaping prior to the announcement.
Factors at Play
Diagnostics
Like the last-reported quarter, the company expects global Molecular Diagnostics revenues for the fiscal second quarter to reflect the benefits of more than 3,000 Panther instruments installed globally. The company’s Panther and Panther Fusion instruments have likely maintained momentum on continued customer adoption, thus contributing to the top line.
We also expect Hologic’s diagnostics business to have witnessed growth in the fiscal second quarter, banking on a significant uptick in the number of COVID-19 cases in the United States and other countries due to the emergence of new COVID-19 variants.
In January 2022, Hologic expanded its Global Access Initiative (GAI) with the addition of the Aptima SARS-CoV-2 assay. The addition of the Aptima SARS-CoV-2 assay to the GAI enables countries to respond to the pandemic and handle new COVID-19 waves. In December 2021, Hologic progressed in terms of the international launch of Panther Trax, representing the newest addition to the Panther Scalable Solutions (PSS) portfolio of products. The company completed the regulatory filings required to make Panther Trax available in several countries and regions. These developments are expected to have contributed to Hologic’s fiscal second-quarter revenues.
Breast Health
Hologic has been making impressive progress in its Breast Health arm over the past few quarters despite the pandemic-led challenging business climate. We are optimistic about an improved sequential performance by the segment during the fiscal second quarter, given the company’s ongoing efforts to diversify the business across the patient continuum of care.
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
During the fiscal first quarter, the company launched new software products based on its investments in artificial intelligence and has strengthened its interventional franchise via the Brevera relaunch. Moreover, Hologic maintained a high market share and continues to grow its installed base of Genius 3D Mammography systems. In addition, the company has developed an adjacent portfolio of more recurring interventional breast surgery products, including markers, needles, a Brevera biopsy system, and handheld devices. We expect these developments to have contributed to Hologic’s revenues in the fiscal second quarter owing to strong market adoption.
GYN Surgical
Similar to the last-reported quarter, Hologic’s GYN Surgical business arm is expected to have registered strong growth in the fiscal second quarter on the back of a rebound in demand for NovaSure endometrial ablation system from the launch of its next-generation B5 system as well as growing momentum from new products such as Fluent and Acessa. We expect the recent acquisitions of Acessa and Bolder Surgical to add momentum to the segmental growth, thereby adding to the top line.
The Estimate Picture
The Zacks Consensus Estimate for fiscal second-quarter revenues of $1.28 billion suggests a decline of 17.1% from the prior-year quarter’s figure.
The consensus estimate for earnings per share is pegged at $1.55, indicating a decline of 40.2% from the year-ago reported figure.
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 +0.65%. 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 #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.
Lucira Health LHDX has an Earnings ESP of +485.72% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s current-year P/E of 3.73x trades significantly cheaper than the S&P 500 Index’s 19.36x.
NanoString Technologies, Inc. NSTG has an Earnings ESP of +1.53% and a Zacks Rank of 2.
NanoString Technologies’ 2023 earnings growth rate is estimated at 35.1%. NSTG’s revenue growth rate for 2023 is expected at 41.83%.
Meridian Bioscience VIVO has an Earnings ESP of +26.32% and a Zacks Rank of 2.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s 2022 revenue growth rate is expected at 6.2%.
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Hologic, Inc. (HOLX) : Free Stock Analysis Report
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