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Hologic (HOLX) to Report Q2 Earnings: What's in the Offing?

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Hologic, Inc. (HOLX - Free Report) is slated to report second-quarter fiscal 2021 results on Apr 28, after the closing bell.

In the last reported quarter, the company’s earnings of $2.86 per share outpaced the Zacks Consensus Estimate by 33.6%. Moreover, its earnings surpassed the consensus estimate in all the last four quarters, the average surprise being 54.30%.

Let's see how things are shaping up prior to the announcement.

Factors at Play

Diagnostics

Hologic expects its Diagnostics segment to continue its stellar performance in the fiscal second quarter on robust show by its Molecular Diagnostics testing products for coronavirus.

Similar to the last reported quarter, the company expects global Molecular Diagnostics revenues in the fiscal second quarter to reflect benefits of additional tests, including the COVID-19 assays, onto Hologic’s Panther-installed base. The company’s Panther and Panther Fusion instruments have likely maintained momentum on continued adoption, thus contributing to the top line. The Molecular Diagnostics segment is expected to have witnessed global growth in the quarter on strength in the Panther system.

Hologic, Inc. Price and EPS Surprise

The Cytology & Perinatal segment of the broader Diagnostics business is expected to have registered growth in the European market during the fiscal second quarter on the back of robust adoption of the Genius digital diagnostics system. Notably, the diagnostics system had received the CE Mark during the fiscal first quarter.

The Zacks Consensus Estimate for Diagnostics’ revenues is pegged at $1.09 billion, suggesting a stupendous upsurge of 244.2% from the year-ago quarter’s reported figure.

Breast Health

During the previous earnings call, management observed that though the Breast Health arm’s overall revenues were down, it improved on a sequential basis driven by strength in the interventional business and the re-launch of Brevera biopsy system. This momentum is likely to have continued during the fiscal second quarter as well, thus driving the segmental revenues.

We continue to remain optimistic about an improved sequential performance by the segment during fiscal second quarter on the back of increasing diversity of the company’s business, cushioning the overall decline.

The Zacks Consensus Estimate for the Breast Health segment’s revenues is pegged at $305 million, indicating a decline of 0.9% from the prior-year quarter’s figure.

GYN Surgical

During fiscal 2021 first-quarter earnings call, Hologic had confirmed that its business arm has been strengthening over the past few months. This is likely to have continued during second-quarter fiscal 2021 as the company is in the process to address the pent-up demand from hospital customers. This is likely to have driven the top line during the quarter.

Hologic is expected to have continued to gain during the to-be-reported quarter from the robust adoption of its ProVu laparoscopic radio frequency ablation system (used for the treatment of uterine fibroids) and the Omni Suite (launched in November 2020). Further, the quarterly performance is expected to have been boosted by the European launch of its CE-marked Fluent fluid management system in January this year.

The Zacks Consensus Estimate for GYN Surgical’s revenues is pegged at $108 million, suggesting an uptick of 2.9% from the year-ago quarter’s reported figure.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter fiscal 2021 revenues is pegged at $1.54 billion, suggesting a 104.2% improvement from the year-ago figure.

The Zacks Consensus Estimate for the company’s earnings of $2.62 suggests a 359.7% upsurge from the year-ago 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 +0.05%. 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.

Other Stocks Worth a Look

Here are a few other medical stocks worth considering, as these too have the right combination of elements to beat on earnings this reporting cycle.

AmerisourceBergen Corporation has an Earnings ESP of +0.50% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +7.06% and a Zacks Rank of 2, at present.

Owens & Minor, Inc. (OMI - Free Report) has an Earnings ESP of +2.41% and is a Zacks #1 Ranked stock.

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