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Breast Health Arm to Boost Hologic (HOLX) in Q3 Earnings
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Hologic Inc. (HOLX - Free Report) Breast Health segment is likely to have witnessed strong performance owing to improved semiconductor chip availability and strong backlog. The growing adoption of Panther instruments and an expanded Panther installed base are likely to have boosted the company’s growth.
We anticipate HOLX’s third-quarter fiscal 2023 performance, scheduled for release on July 31 after the closing bell, to reflect these aspects.
Click here to know how the company’s overall fiscal third-quarter performance is expected to be.
Breast Health
In the past few quarters, semiconductor chip availability continues to improve, facilitating the delivery of more gantries than planned. Also, the exceptional demand for the clinically differentiated mammography instruments remains high. Despite the duration of the chip headwind, Hologic’s backlog remains strong. We believe these trends to have continued in the fiscal third quarter as well.
In the second quarter, Hologic registered strong service revenue service being the largest source of revenue for the division as it consistently demonstrates its value proposition and strengthen the relationships with customers. The interventional side of the Breast Health business returned to form, up 13.9% for the quarter. The upside was driven by the disposable portfolio such as Brevera biopsy needles and Somatex Tumark markers. We believe these trends to have continued in the fiscal third quarter as well.
Diagnostics
In third-quarter fiscal 2023, Hologic is expected to have witnessed growth in the Diagnostics business (excluding COVID) from the growing adoption of Panther instruments and an expanded Panther installed base. The company’s expanded global installed base of more than 3,250 Panthers represents the catalyst for the division's sustained growth. The superior workflow of Panther combined with a broad menu of nearly 20 FDA-approved assays across Panther and Panther Fusion systems, creates tremendous value for customers and differentiates it from competitors. We believe these growth catalysts to have driven the company’s performance in fiscal third quarter.
In May 2023, Hologic received the FDA 510(k) clearance for the company’s Panther Fusion SARS-CoV-2/Flu A/B/RSV assay. This assay is a molecular diagnostic test that detects and differentiates four of the most prevalent respiratory viruses that can exhibit similar clinical symptoms — severe acute respiratory syndrome coronavirus 2, influenza A, influenza B and respiratory syncytial virus. We believe this development to have contributed to the company’s fiscal third-quarter performance.
However, similar to industry-wide trends, Hologic’s Diagnostics business is expected to decline globally compared with the prior year’s levels due to significantly lower COVID testing.
What Our Model Suggests
Our proven model does not conclusively predict 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 odds of an earnings beat. However, this is not the case here.
Earnings ESP: Hologic has an Earnings ESP of -2.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently sports a Zacks Rank #1.
Other Stocks to Consider
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
TG Therapeutics has an expected earnings growth rate of 37.7% for 2023. TGTX’s 2023 projected revenues of $87.65 million indicate a massive increase from the year-ago reported figure of $2.8 million.
Dentsply Sirona (XRAY - Free Report) has an Earnings ESP of +3.39% and a Zacks Rank of #2. Dentsply Sirona is scheduled to release second-quarter fiscal 2023 results on Aug 3.
XRAY’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other, the average beat being 10.47%. XRAY’s long-term expected growth rate is estimated to be 9.3%.
SiBone (SIBN - Free Report) has an Earnings ESP of +12.2% and a Zacks Rank #1. SiBone is scheduled to release second-quarter 2023 results on Aug 7.
SIBN’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, with the average surprise being 11.11%. The Zacks Consensus Estimate for SIBN’s second-quarter EPS indicates a 22.2% improvement from the year-ago reported figure.
Image: Bigstock
Breast Health Arm to Boost Hologic (HOLX) in Q3 Earnings
Hologic Inc. (HOLX - Free Report) Breast Health segment is likely to have witnessed strong performance owing to improved semiconductor chip availability and strong backlog. The growing adoption of Panther instruments and an expanded Panther installed base are likely to have boosted the company’s growth.
We anticipate HOLX’s third-quarter fiscal 2023 performance, scheduled for release on July 31 after the closing bell, to reflect these aspects.
Click here to know how the company’s overall fiscal third-quarter performance is expected to be.
Breast Health
In the past few quarters, semiconductor chip availability continues to improve, facilitating the delivery of more gantries than planned. Also, the exceptional demand for the clinically differentiated mammography instruments remains high. Despite the duration of the chip headwind, Hologic’s backlog remains strong. We believe these trends to have continued in the fiscal third quarter as well.
In the second quarter, Hologic registered strong service revenue service being the largest source of revenue for the division as it consistently demonstrates its value proposition and strengthen the relationships with customers. The interventional side of the Breast Health business returned to form, up 13.9% for the quarter. The upside was driven by the disposable portfolio such as Brevera biopsy needles and Somatex Tumark markers. We believe these trends to have continued in the fiscal third quarter as well.
Diagnostics
In third-quarter fiscal 2023, Hologic is expected to have witnessed growth in the Diagnostics business (excluding COVID) from the growing adoption of Panther instruments and an expanded Panther installed base. The company’s expanded global installed base of more than 3,250 Panthers represents the catalyst for the division's sustained growth. The superior workflow of Panther combined with a broad menu of nearly 20 FDA-approved assays across Panther and Panther Fusion systems, creates tremendous value for customers and differentiates it from competitors. We believe these growth catalysts to have driven the company’s performance in fiscal third quarter.
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
In May 2023, Hologic received the FDA 510(k) clearance for the company’s Panther Fusion SARS-CoV-2/Flu A/B/RSV assay. This assay is a molecular diagnostic test that detects and differentiates four of the most prevalent respiratory viruses that can exhibit similar clinical symptoms — severe acute respiratory syndrome coronavirus 2, influenza A, influenza B and respiratory syncytial virus. We believe this development to have contributed to the company’s fiscal third-quarter performance.
However, similar to industry-wide trends, Hologic’s Diagnostics business is expected to decline globally compared with the prior year’s levels due to significantly lower COVID testing.
What Our Model Suggests
Our proven model does not conclusively predict 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 odds of an earnings beat. However, this is not the case here.
Earnings ESP: Hologic has an Earnings ESP of -2.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently sports a Zacks Rank #1.
Other Stocks to Consider
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
TG Therapeutics (TGTX - Free Report) has an Earnings ESP of +12.00% and a Zacks Rank of #2. The company is expected to release second-quarter 2023 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
TG Therapeutics has an expected earnings growth rate of 37.7% for 2023. TGTX’s 2023 projected revenues of $87.65 million indicate a massive increase from the year-ago reported figure of $2.8 million.
Dentsply Sirona (XRAY - Free Report) has an Earnings ESP of +3.39% and a Zacks Rank of #2. Dentsply Sirona is scheduled to release second-quarter fiscal 2023 results on Aug 3.
XRAY’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other, the average beat being 10.47%. XRAY’s long-term expected growth rate is estimated to be 9.3%.
SiBone (SIBN - Free Report) has an Earnings ESP of +12.2% and a Zacks Rank #1. SiBone is scheduled to release second-quarter 2023 results on Aug 7.
SIBN’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, with the average surprise being 11.11%. The Zacks Consensus Estimate for SIBN’s second-quarter EPS indicates a 22.2% improvement from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.