We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hologic's (HOLX) Q3 Earnings Beat Estimates, 2023 View Up
Read MoreHide Full Article
Hologic, Inc. (HOLX - Free Report) reported adjusted earnings per share (EPS) of 93 cents in third-quarter fiscal 2023, down 2.1% year over year. However, the bottom line surpassed the Zacks Consensus Estimate by 5.7%.
The adjustments include charges and benefits related to the amortization of acquired intangible assets, certain asset impairment charges and restructuring and integration/consolidation costs.
The company’s GAAP loss per share was 16 cents in the quarter compared with the year-ago quarter’s EPS of 90 cents.
Revenues in Detail
Revenues totaled $984.4 million in the said quarter, dropping 1.8% year over year (down 1.6% at the constant exchange rate or CER). The metric surpassed the Zacks Consensus Estimate by 2.9%. Lower sales of COVID-19 assays dragged the top line.
Segments in Detail
In the fiscal third quarter, U.S. revenues totaled $750.1 million and increased 2.1%. International revenues amounted to $234.3 million, which fell 12.6% year over year or 11.6% at CER.
Revenues in the Diagnostics segment declined 21.5% year over year (down 21.3% at CER) to $439.7 million in the quarter under review. Excluding COVID-19 revenues, Diagnostics revenues increased 11.8% on both reported and CER basis.
Cytology & Perinatal revenues of $126.8 million were up 9.9% at CER. Molecular Diagnostics revenues of $302.2 million declined 30.4% at CER. Blood Screening revenues of $10.7 million rose 20.2% year over year at CER.
Revenues in the Breast Health segment rose 27.4% from the year-ago period’s (up 27.5% at CER) levels to $311.5 million, primarily due to higher capital equipment revenue compared to the prior year period, as an improving semiconductor chip supply environment enabled more gantry deliveries.
Revenues in the GYN Surgical business rose 13.9% year over year (up 14.5% at CER) to $144.8 million, driven by solid results from the Company’s hysteroscopic portfolio.
Revenues at Skeletal Health increased 24.9% year over year (up 25% at CER) to $27.1 million.
Operational Update
In the fiscal third quarter, the company-provided adjusted gross margin contracted 250 basis points (bps) to 60.8%. According to the company, the downside in gross margin was primarily due to a year-over-year decline in COVID-19 assay sales.
The company’s adjusted operating margin was 28.9%, contracted 340 bps.
Financial Update
Hologic ended third-quarter fiscal 2023 with cash and cash equivalents of $2.77 billion compared with $2.34 billion at the end of second-quarter fiscal 2023.
Total long-term debt (including the current portion) was $2.79 billion at the end of the fiscal third quarter, unchanged from the fiscal second quarter end’s levels.
Net cash provided by operating activities at the end of the fiscal third quarter was $792.5 million compared with $1.96 billion a year ago.
Guidance
Hologic issued the guidance for the fourth quarter and updated the fiscal 2023 guidance.
For fiscal 2023, the company projects revenues within $3.99-4.03 billion (up from the previous guidance of $3.92-4.03 billion), suggesting a year-over-year decline in the range of 17.8-17% on a reported basis, 17.1-16.2% at CER and 17.3-16.5% organically. The Zacks Consensus Estimate for fiscal 2023 revenues is pegged at $4.01 billion.
Adjusted earnings per share for fiscal 2023 are now estimated to be $3.87-$3.94 (up from the previous guidance of $3.75-$3.95), with a projected decline of 35.7-34.6% year over year. The Zacks Consensus Estimate for fiscal 2023 earnings per share is pegged at $3.89.
For fourth-quarter fiscal 2023, the company projects revenues within $910-$950 million, suggesting a year-over-year decline in the range of 4.5-0.3% on a reported basis, 5.2-1% at CER and 5.1-0.9% organically. The Zacks Consensus Estimate for fourth-quarter fiscal 2023 revenues is pegged at $949.5 million.
Adjusted EPS for the fourth quarter are estimated in the range of 80-87 cents, suggesting a decline of 2.4-6.1% year over year. The Zacks Consensus Estimate for fourth-quarter fiscal 2023 EPS is pegged at 86 cents.
Our Take
Hologic delivered better-than-expected revenues and earnings in third-quarter fiscal 2023. The company’s Breast Health segment registered strong growth driven by improving semiconductor chip supply, enabling additional gantry deliveries within the quarter, resulting in higher capital equipment revenue compared with the prior-year period’s levels. GYN Surgical business, driven by strong results from the Company’s hysteroscopic portfolio. During the reported quarter, the company obtained FDA 510(k) clearance for its Panther Fusion® SARS-CoV-2/Flu A/B/RSV assay. Moreover, the company has raised 2023 guidance, raising optimism about the stock.
On a year-over-year basis, revenues and earnings were significantly down. The significant decline in COVID-19 assay revenues dragged total revenues down. The company also reported a contraction in both margins, which looks discouraging.
Zacks Rank and Key Picks
Hologic currently carries Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9% You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Hologic's (HOLX) Q3 Earnings Beat Estimates, 2023 View Up
Hologic, Inc. (HOLX - Free Report) reported adjusted earnings per share (EPS) of 93 cents in third-quarter fiscal 2023, down 2.1% year over year. However, the bottom line surpassed the Zacks Consensus Estimate by 5.7%.
The adjustments include charges and benefits related to the amortization of acquired intangible assets, certain asset impairment charges and restructuring and integration/consolidation costs.
The company’s GAAP loss per share was 16 cents in the quarter compared with the year-ago quarter’s EPS of 90 cents.
Revenues in Detail
Revenues totaled $984.4 million in the said quarter, dropping 1.8% year over year (down 1.6% at the constant exchange rate or CER). The metric surpassed the Zacks Consensus Estimate by 2.9%. Lower sales of COVID-19 assays dragged the top line.
Segments in Detail
In the fiscal third quarter, U.S. revenues totaled $750.1 million and increased 2.1%. International revenues amounted to $234.3 million, which fell 12.6% year over year or 11.6% at CER.
Revenues in the Diagnostics segment declined 21.5% year over year (down 21.3% at CER) to $439.7 million in the quarter under review. Excluding COVID-19 revenues, Diagnostics revenues increased 11.8% on both reported and CER basis.
Cytology & Perinatal revenues of $126.8 million were up 9.9% at CER. Molecular Diagnostics revenues of $302.2 million declined 30.4% at CER. Blood Screening revenues of $10.7 million rose 20.2% year over year at CER.
Revenues in the Breast Health segment rose 27.4% from the year-ago period’s (up 27.5% at CER) levels to $311.5 million, primarily due to higher capital equipment revenue compared to the prior year period, as an improving semiconductor chip supply environment enabled more gantry deliveries.
Revenues in the GYN Surgical business rose 13.9% year over year (up 14.5% at CER) to $144.8 million, driven by solid results from the Company’s hysteroscopic portfolio.
Revenues at Skeletal Health increased 24.9% year over year (up 25% at CER) to $27.1 million.
Operational Update
In the fiscal third quarter, the company-provided adjusted gross margin contracted 250 basis points (bps) to 60.8%. According to the company, the downside in gross margin was primarily due to a year-over-year decline in COVID-19 assay sales.
Hologic, Inc. Price, Consensus and EPS Surprise
Hologic, Inc. price-consensus-eps-surprise-chart | Hologic, Inc. Quote
The company’s adjusted operating margin was 28.9%, contracted 340 bps.
Financial Update
Hologic ended third-quarter fiscal 2023 with cash and cash equivalents of $2.77 billion compared with $2.34 billion at the end of second-quarter fiscal 2023.
Total long-term debt (including the current portion) was $2.79 billion at the end of the fiscal third quarter, unchanged from the fiscal second quarter end’s levels.
Net cash provided by operating activities at the end of the fiscal third quarter was $792.5 million compared with $1.96 billion a year ago.
Guidance
Hologic issued the guidance for the fourth quarter and updated the fiscal 2023 guidance.
For fiscal 2023, the company projects revenues within $3.99-4.03 billion (up from the previous guidance of $3.92-4.03 billion), suggesting a year-over-year decline in the range of 17.8-17% on a reported basis, 17.1-16.2% at CER and 17.3-16.5% organically. The Zacks Consensus Estimate for fiscal 2023 revenues is pegged at $4.01 billion.
Adjusted earnings per share for fiscal 2023 are now estimated to be $3.87-$3.94 (up from the previous guidance of $3.75-$3.95), with a projected decline of 35.7-34.6% year over year. The Zacks Consensus Estimate for fiscal 2023 earnings per share is pegged at $3.89.
For fourth-quarter fiscal 2023, the company projects revenues within $910-$950 million, suggesting a year-over-year decline in the range of 4.5-0.3% on a reported basis, 5.2-1% at CER and 5.1-0.9% organically. The Zacks Consensus Estimate for fourth-quarter fiscal 2023 revenues is pegged at $949.5 million.
Adjusted EPS for the fourth quarter are estimated in the range of 80-87 cents, suggesting a decline of 2.4-6.1% year over year. The Zacks Consensus Estimate for fourth-quarter fiscal 2023 EPS is pegged at 86 cents.
Our Take
Hologic delivered better-than-expected revenues and earnings in third-quarter fiscal 2023. The company’s Breast Health segment registered strong growth driven by improving semiconductor chip supply, enabling additional gantry deliveries within the quarter, resulting in higher capital equipment revenue compared with the prior-year period’s levels. GYN Surgical business, driven by strong results from the Company’s hysteroscopic portfolio. During the reported quarter, the company obtained FDA 510(k) clearance for its Panther Fusion® SARS-CoV-2/Flu A/B/RSV assay. Moreover, the company has raised 2023 guidance, raising optimism about the stock.
On a year-over-year basis, revenues and earnings were significantly down. The significant decline in COVID-19 assay revenues dragged total revenues down. The company also reported a contraction in both margins, which looks discouraging.
Zacks Rank and Key Picks
Hologic currently carries Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9% You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.