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Non-COVID Diagnostics Sales to Aid Hologic (HOLX) Q4 Earnings
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Hologic, Inc.’s (HOLX - Free Report) diagnostics business is likely to have witnessed an increase in non-COVID Diagnostics business, banking on growing Panther instruments worldwide. The Breast Health arm is expected to have seen signs of recovery amid the ongoing chip shortage.
We anticipate the company’s fourth-quarter fiscal 2022 results, scheduled for release on Oct 31 after the closing bell, to reflect these aspects.
Click here to know how the company’s overall fiscal fourth-quarter performance is expected to be.
Diagnostics
Hologic’s Molecular Diagnostics sales for the fiscal fourth quarter are likely to have been impacted by a significant drop in the demand for COVID-19 testing. However, the company seems to be optimistic about the benefits of non-COVID assays on the Panther system. Particularly, with COVID-19 severity gradually subsiding, women are fast returning to their wellness exams and procedures over the past few months. This might have significantly boosted the segment’s revenues in fiscal Q4.
On the fiscal Q3 earnings call, Hologic noted strong global diagnostic business growth amid the adversities. According to the company, this is aclear sign that its expanded Panther installed base is being utilized. This also indicates that Panther is gaining position as an instrument of choice as customers consolidate their molecular testing menu to high throughput, high automation platforms. With the non-COVID testing market improving further through the months of fiscal Q4, we expect improved utilization of the Panther installed base. More specifically, the fourth-quarter performance is expected to have been driven by a combination of both legacy and new assays, namely the BBCVTV vaginitis panel, MGen, CTMG and respiratory menu on the Panther Fusion.
Breast Health
Despite being faced with supply chain headwinds related to the semiconductor chip shortage, Hologic has been leaving no stone unturned to address the robust underlying demand for its breast health products. There is likely to have been an improvement in sequential performance by the segment during the fiscal fourth quarter on a robust product portfolio and increasing backlog growth. As the economies around the world return to normalcy, we anticipate a rebound in breast screenings to significantly contribute to the segment’s upcoming results.
The ongoing positive trends within Breast Health include stabilizing lead times, procurement through a combination of channels and narrowing the breadth and depth of tight supply. In addition, during the last earnings call, Hologic noted that the sales force continues to place orders in line with quotas set prior to the chip headwind surfacing, and there has been no meaningful change to the rate of canceled orders. A similar trend is expected to get reflected in the Q4 results.
What Our Model Suggests
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has higher chances of beating estimates. However, this is not the case, as you can see:
Earnings ESP: Hologic has an Earnings ESP of 0.00%. 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 #4 (Sell).
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Chimerix’s earnings yield of 112.3% compares favorably with the industry’s -2.98%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.77% compares favorably with the industry’s 5.19%.
Humana (HUM - Free Report) currently has an Earnings ESP of +1.12% and a Zacks Rank of #2. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5%, in line with the industry.
Image: Bigstock
Non-COVID Diagnostics Sales to Aid Hologic (HOLX) Q4 Earnings
Hologic, Inc.’s (HOLX - Free Report) diagnostics business is likely to have witnessed an increase in non-COVID Diagnostics business, banking on growing Panther instruments worldwide. The Breast Health arm is expected to have seen signs of recovery amid the ongoing chip shortage.
We anticipate the company’s fourth-quarter fiscal 2022 results, scheduled for release on Oct 31 after the closing bell, to reflect these aspects.
Click here to know how the company’s overall fiscal fourth-quarter performance is expected to be.
Diagnostics
Hologic’s Molecular Diagnostics sales for the fiscal fourth quarter are likely to have been impacted by a significant drop in the demand for COVID-19 testing. However, the company seems to be optimistic about the benefits of non-COVID assays on the Panther system. Particularly, with COVID-19 severity gradually subsiding, women are fast returning to their wellness exams and procedures over the past few months. This might have significantly boosted the segment’s revenues in fiscal Q4.
On the fiscal Q3 earnings call, Hologic noted strong global diagnostic business growth amid the adversities. According to the company, this is aclear sign that its expanded Panther installed base is being utilized. This also indicates that Panther is gaining position as an instrument of choice as customers consolidate their molecular testing menu to high throughput, high automation platforms. With the non-COVID testing market improving further through the months of fiscal Q4, we expect improved utilization of the Panther installed base. More specifically, the fourth-quarter performance is expected to have been driven by a combination of both legacy and new assays, namely the BBCVTV vaginitis panel, MGen, CTMG and respiratory menu on the Panther Fusion.
Breast Health
Despite being faced with supply chain headwinds related to the semiconductor chip shortage, Hologic has been leaving no stone unturned to address the robust underlying demand for its breast health products. There is likely to have been an improvement in sequential performance by the segment during the fiscal fourth quarter on a robust product portfolio and increasing backlog growth. As the economies around the world return to normalcy, we anticipate a rebound in breast screenings to significantly contribute to the segment’s upcoming results.
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
The ongoing positive trends within Breast Health include stabilizing lead times, procurement through a combination of channels and narrowing the breadth and depth of tight supply. In addition, during the last earnings call, Hologic noted that the sales force continues to place orders in line with quotas set prior to the chip headwind surfacing, and there has been no meaningful change to the rate of canceled orders. A similar trend is expected to get reflected in the Q4 results.
What Our Model Suggests
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has higher chances of beating estimates. However, this is not the case, as you can see:
Earnings ESP: Hologic has an Earnings ESP of 0.00%. 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 #4 (Sell).
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Chimerix (CMRX - Free Report) has an Earnings ESP of +33.81% and a Zacks Rank of #2. The company will release third-quarter 2022 results on Nov 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chimerix’s earnings yield of 112.3% compares favorably with the industry’s -2.98%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.77% compares favorably with the industry’s 5.19%.
Humana (HUM - Free Report) currently has an Earnings ESP of +1.12% and a Zacks Rank of #2. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5%, in line with the industry.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.