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Diagnostics Sales to Drive Hologic's (HOLX) Q1 Earnings
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Hologic, Inc.’s (HOLX - Free Report) diagnostics business has likely witnessed robust growth in the fiscal first quarter, banking on increased COVID-19 testing demand. Moreover, the Breast Health arm has been witnessing a faster-than-expected return to growth on the company’s efforts to diversify the business across the patient continuum of care.
We anticipate the company’s first-quarter fiscal 2022 results, scheduled for release on Feb 2 after the closing bell, to reflect these attributes duly.
Click here to know what the company’s overall first-quarter performance is expected to be.
Diagnostics
During the fiscal fourth-quarter earnings call, management observed that COVID-19 testing revenues exceeded the company’s expectations as the Delta variant surged throughout the quarter. The company shipped about 21 million COVID-19 tests to customers during the fourth quarter with robust demand in the United States, representing about two-thirds of total COVID-19 assay revenues. We expect Hologic to have witnessed increased COVID-19 testing demand in the to-be-reported quarter, banking on the recent surge in the Omicron variant. The company’s recent update about its three SARS-CoV-2 tests successfully detecting the recently-emerged Omicron variant of coronavirus is expected to have boosted Hologic’s diagnostics revenues in the fiscal first quarter.
In November 2021, Hologic launched the Novodiag system for on-demand molecular testing in Europe. The addition of the Novodiag system to the company’s diagnostic molecular scalable solutions portfolio is expected to have broadened the company’s customer base in Europe with a wide range of solutions. This is expected to have witnessed strong market adoption in the fiscal first quarter by banking on the surge in coronavirus cases induced by the Omicron variant, thus adding to the top line.
Furthermore, like the last-reported quarter, the company expects global Molecular Diagnostics revenues for the fiscal first quarter to reflect the benefits of additional tests onto Hologic’s Panther-installed base. In the fourth quarter, the company placed 167 Panther instruments worldwide. The company’s Panther installed base currently stands at more than 1,500 in the United States and almost 2,900 worldwide. We expect these developments to have contributed significantly to the company’s top line in the fiscal first quarter.
Breast Health
During the fiscal fourth-quarter earnings call, management observed that the Breast Health arm has been witnessing impressive progress over the past few months despite the pandemic-led challenging business climate. We are optimistic about an improvement in sequential performance by the segment during the fiscal first quarter on robust product portfolio and strong demand for Brevera following its relaunch along with February-acquired Biotheranostics.
During the fourth-quarter earnings call, the company noted that its Genius 3D mammography systems remain the core of its business and the market share remains very high. Despite COVID-19 pressure, Hologic placed almost 950 3D units in the United States in 2021. Hologic also noted that it now has a domestic installed base of almost 8,700. We believe these developments to have contributed significantly to Hologic’s top line in the first quarter.
Biotheranostics -- a leader in molecular tests for breast and metastatic cancers -- enables Hologic to expand into the adjacent growth market of oncology. During the fourth-quarter earnings call, Hologic noted that Biotheranostics continues to exceed expectations with more than $16 million of revenues in the fourth quarter. We expect Biotheranostics to have contributed significantly to first-quarter revenues by enabling Hologic to enter the lab-based oncology space.
During the fourth-quarter earnings call, Hologic confirmed the development of related women's health tests often performed from the same patient sample, such as a vaginosis panel. In November 2021, Hologic announced its new Genius Digital Diagnostics System is now commercially available in Europe. The Genius Digital Diagnostics System is the next generation of cervical cancer screening that combines deep learning-based artificial intelligence (AI) with advanced volumetric imaging technology to help identify pre-cancerous lesions and cervical cancer cells in women. These developments are expected to have witnessed strong market adoption through the fiscal first quarter, thus adding to the top line.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: Hologic has an Earnings ESP of -1.65%. 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 #2.
Stocks With Favorable Combinations
Here are a few medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Image: Bigstock
Diagnostics Sales to Drive Hologic's (HOLX) Q1 Earnings
Hologic, Inc.’s (HOLX - Free Report) diagnostics business has likely witnessed robust growth in the fiscal first quarter, banking on increased COVID-19 testing demand. Moreover, the Breast Health arm has been witnessing a faster-than-expected return to growth on the company’s efforts to diversify the business across the patient continuum of care.
We anticipate the company’s first-quarter fiscal 2022 results, scheduled for release on Feb 2 after the closing bell, to reflect these attributes duly.
Click here to know what the company’s overall first-quarter performance is expected to be.
Diagnostics
During the fiscal fourth-quarter earnings call, management observed that COVID-19 testing revenues exceeded the company’s expectations as the Delta variant surged throughout the quarter. The company shipped about 21 million COVID-19 tests to customers during the fourth quarter with robust demand in the United States, representing about two-thirds of total COVID-19 assay revenues. We expect Hologic to have witnessed increased COVID-19 testing demand in the to-be-reported quarter, banking on the recent surge in the Omicron variant. The company’s recent update about its three SARS-CoV-2 tests successfully detecting the recently-emerged Omicron variant of coronavirus is expected to have boosted Hologic’s diagnostics revenues in the fiscal first quarter.
In November 2021, Hologic launched the Novodiag system for on-demand molecular testing in Europe. The addition of the Novodiag system to the company’s diagnostic molecular scalable solutions portfolio is expected to have broadened the company’s customer base in Europe with a wide range of solutions. This is expected to have witnessed strong market adoption in the fiscal first quarter by banking on the surge in coronavirus cases induced by the Omicron variant, thus adding to the top line.
Furthermore, like the last-reported quarter, the company expects global Molecular Diagnostics revenues for the fiscal first quarter to reflect the benefits of additional tests onto Hologic’s Panther-installed base. In the fourth quarter, the company placed 167 Panther instruments worldwide. The company’s Panther installed base currently stands at more than 1,500 in the United States and almost 2,900 worldwide. We expect these developments to have contributed significantly to the company’s top line in the fiscal first quarter.
Breast Health
During the fiscal fourth-quarter earnings call, management observed that the Breast Health arm has been witnessing impressive progress over the past few months despite the pandemic-led challenging business climate. We are optimistic about an improvement in sequential performance by the segment during the fiscal first quarter on robust product portfolio and strong demand for Brevera following its relaunch along with February-acquired Biotheranostics.
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
During the fourth-quarter earnings call, the company noted that its Genius 3D mammography systems remain the core of its business and the market share remains very high. Despite COVID-19 pressure, Hologic placed almost 950 3D units in the United States in 2021. Hologic also noted that it now has a domestic installed base of almost 8,700. We believe these developments to have contributed significantly to Hologic’s top line in the first quarter.
Biotheranostics -- a leader in molecular tests for breast and metastatic cancers -- enables Hologic to expand into the adjacent growth market of oncology. During the fourth-quarter earnings call, Hologic noted that Biotheranostics continues to exceed expectations with more than $16 million of revenues in the fourth quarter. We expect Biotheranostics to have contributed significantly to first-quarter revenues by enabling Hologic to enter the lab-based oncology space.
During the fourth-quarter earnings call, Hologic confirmed the development of related women's health tests often performed from the same patient sample, such as a vaginosis panel. In November 2021, Hologic announced its new Genius Digital Diagnostics System is now commercially available in Europe. The Genius Digital Diagnostics System is the next generation of cervical cancer screening that combines deep learning-based artificial intelligence (AI) with advanced volumetric imaging technology to help identify pre-cancerous lesions and cervical cancer cells in women. These developments are expected to have witnessed strong market adoption through the fiscal first quarter, thus adding to the top line.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: Hologic has an Earnings ESP of -1.65%. 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 #2.
Stocks With Favorable Combinations
Here are a few medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
AMN Healthcare Services, Inc. (AMN - Free Report) has an Earnings ESP of +10.29% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. AMN’s earnings yield of 6.9% compares favorably with the industry’s 1.1%.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +2.62% and a Zacks Rank of 2.
Henry Schein’s long-term earnings growth rate is estimated at 11.8%. HSIC's earnings yield of 6.4% compares favorably with the industry’s 4.4%.
Laboratory Corporation of America Holdings (LH - Free Report) or LabCorp has an Earnings ESP of +9.21% and a Zacks Rank #1.
LabCorp long-term earnings growth rate is estimated at 10.6%. LH's earnings yield of 6.9% compares favorably with the industry’s 4.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.