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Hologic: Q2 Strong on Segmental Expansion, Competition Rife
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On Jun 7, we issued an updated research report on Bedford, MA-based Hologic Inc. (HOLX - Free Report) – a provider of diagnostics, medical imaging systems and surgical products which cater to the healthcare needs of women. The company currently carries a Zacks Rank #3 (Hold).
Hologic ended second-quarter fiscal 2016 on a promising note, squarely beating the Zacks Consensus Estimate. The company’s strong cash position is expected to help management meet its long-term goal to pay off debt in the quarters ahead.
With regard to its legacy breast health business, Hologic is gaining continuous traction in the domestic breast imaging market despite stiff competition, thanks to sustained uptake of its Genius 3D mammography device. It is also encouraging to note that Hologic’s 3D Genius system currently caters to only 20% of the concerned market, indicating scope for market expansion.
Moreover, the company continued to make substantial progress in its largest segment – Diagnostics. Within this segment’s molecular diagnostics business, Hologic witnessed enhanced growth for the domestic franchise as the company’s fully automated Panther system continued to gain new placements and competitive wins.
In addition, management observed growth in utilization of sales of Hologic’s Trichomonas, HPV Chlamydia and gonorrhoea tests in the second quarter. Also, management is upbeat about the recent stabilization of its Surgical segment’s NovaSure franchise along with stellar growth of its MyoSure products.
On the flip side, in the second quarter, the company witnessed a massive decline in its international blood screening revenues, mainly because of the annualization of the JRC contract in the fourth quarter of fiscal 2015.
The company’s skeletal health segment also took a big hit this quarter, particularly overseas, on account of adverse distributor ordering patterns. In addition, challenging capital spending environment, competitive headwinds and rising pricing pressure are downsides.
Key Picks in the Sector
Other favorably ranked medical stocks are Baxter International Inc. (BAX - Free Report) , Boston Scientific Corporation (BSX - Free Report) and LeMaitre Vascular, Inc. (LMAT - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy).
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Hologic: Q2 Strong on Segmental Expansion, Competition Rife
On Jun 7, we issued an updated research report on Bedford, MA-based Hologic Inc. (HOLX - Free Report) – a provider of diagnostics, medical imaging systems and surgical products which cater to the healthcare needs of women. The company currently carries a Zacks Rank #3 (Hold).
Hologic ended second-quarter fiscal 2016 on a promising note, squarely beating the Zacks Consensus Estimate. The company’s strong cash position is expected to help management meet its long-term goal to pay off debt in the quarters ahead.
With regard to its legacy breast health business, Hologic is gaining continuous traction in the domestic breast imaging market despite stiff competition, thanks to sustained uptake of its Genius 3D mammography device. It is also encouraging to note that Hologic’s 3D Genius system currently caters to only 20% of the concerned market, indicating scope for market expansion.
Moreover, the company continued to make substantial progress in its largest segment – Diagnostics. Within this segment’s molecular diagnostics business, Hologic witnessed enhanced growth for the domestic franchise as the company’s fully automated Panther system continued to gain new placements and competitive wins.
In addition, management observed growth in utilization of sales of Hologic’s Trichomonas, HPV Chlamydia and gonorrhoea tests in the second quarter. Also, management is upbeat about the recent stabilization of its Surgical segment’s NovaSure franchise along with stellar growth of its MyoSure products.
On the flip side, in the second quarter, the company witnessed a massive decline in its international blood screening revenues, mainly because of the annualization of the JRC contract in the fourth quarter of fiscal 2015.
The company’s skeletal health segment also took a big hit this quarter, particularly overseas, on account of adverse distributor ordering patterns. In addition, challenging capital spending environment, competitive headwinds and rising pricing pressure are downsides.
Key Picks in the Sector
Other favorably ranked medical stocks are Baxter International Inc. (BAX - Free Report) , Boston Scientific Corporation (BSX - Free Report) and LeMaitre Vascular, Inc. (LMAT - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>