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Hologic (HOLX) Gains From New Launches as Macro Concerns Rise
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Hologic’s (HOLX - Free Report) progress in the domestic and international markets, strong pipeline of products and continued solid performance of the Molecular Diagnostics segment bolster our confidence. Yet, the company continues to face tough competition, particularly in the tomosynthesis market. The stock carries a Zacks Rank #3 (Hold).
Hologic’s Breast Health segment is gaining from a broad portfolio of solutions for breast cancer care, primarily in the burgeoning spaces of radiology, breast surgery, pathology and treatment. Some of the company’s profit-making solutions include 3D digital mammography systems, image analytics software utilizing artificial intelligence, ultrasound imaging and minimally invasive breast biopsy guidance systems.
The company has been making impressive progress in its Breast Health arm recently, leveraging its strategic expansion efforts to diversify business across the patient continuum of care.
In the third quarter of fiscal 2023, the Breast Health arm registered strong growth, primarily driven by increased volumes of digital mammography systems, primarily 3D Dimensions systems and related workstation and workflow products, including software. Further, increased Trident systems unit sales and higher Faxitron breast-conserving surgery products aided growth. The increase in volume was driven by the improvement in supply chain constraints related to electronic components, primarily semiconductor chips.
Lately, as the severity of the pandemic is over, Hologic’s Molecular Diagnostics business has been registering strong growth, driven by a combination of newer assays like BV, CV/TV and contributions from Amgen and HSV, as well as strong growth from longstanding women's health menu.
Further, the company’s expanded global installed base of Panthers (more than 3,250) is 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 the Panther and Panther Fusion systems creates tremendous value for customers and differentiates Hologic from competitors.
Over the past year, shares have risen 11.5% compared with the industry’s 0.4% rise.
On the flip side, during the COVID-19 public health emergency, Hologic launched several assays to detect COVID. However, the company is experiencing a continuous decline in COVID testing-related demand and it is expected to worsen in 2023 as customer testing and therapy, and vaccine demand decline.
In the third quarter of fiscal 2023, COVID-19 revenues, which consist of COVID-19 assay revenues and other COVID-19 related revenues and revenues from discontinued products, decreased 74.6% or 74.4% in constant currency.
We remain worried about the significant challenges Hologic faces owing to an unfavorable foreign currency impact that has been affecting the company’s overall performance in the past few quarters. The company’s international sales are often denominated in foreign currencies, including the euro, UK pound and renminbi. Changes in currency exchange rates, particularly the increase in the value of the dollar against any such foreign currencies, may reduce the reported value of Hologic’s revenues and associated cash flows outside the United States.
During the nine-month period in fiscal 2023 (ending Jul 1, 2023), the company experienced an adverse impact from foreign currency translation on its Diagnostics, Breast Health and Skeletal Health international sales.
Haemonetics’ stock has risen 19.7% in the past year. Earnings estimates for Haemonetics have increased from $3.56 to $3.74 for 2023 and from $3.96 to $4.07 for 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.39%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for Quanterix’s 2023 loss per share have narrowed from $1.19 to 97 cents in the past 30 days. Shares of the company have increased 186% in the past year against the industry’s decline of 22.5%.
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for SiBone’s 2023 loss have narrowed from $1.42 to $1.27 per share in the past 30 days. Shares of the company have increased 23.3% in the past year compared with the industry’s rise of 2.3%.
SIBN’s earnings beat estimates in all the trailing four quarters, the average surprise being 20.37%. In the last reported quarter, SiBone delivered an earnings surprise of 26.83%.
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Hologic (HOLX) Gains From New Launches as Macro Concerns Rise
Hologic’s (HOLX - Free Report) progress in the domestic and international markets, strong pipeline of products and continued solid performance of the Molecular Diagnostics segment bolster our confidence. Yet, the company continues to face tough competition, particularly in the tomosynthesis market. The stock carries a Zacks Rank #3 (Hold).
Hologic’s Breast Health segment is gaining from a broad portfolio of solutions for breast cancer care, primarily in the burgeoning spaces of radiology, breast surgery, pathology and treatment. Some of the company’s profit-making solutions include 3D digital mammography systems, image analytics software utilizing artificial intelligence, ultrasound imaging and minimally invasive breast biopsy guidance systems.
The company has been making impressive progress in its Breast Health arm recently, leveraging its strategic expansion efforts to diversify business across the patient continuum of care.
In the third quarter of fiscal 2023, the Breast Health arm registered strong growth, primarily driven by increased volumes of digital mammography systems, primarily 3D Dimensions systems and related workstation and workflow products, including software. Further, increased Trident systems unit sales and higher Faxitron breast-conserving surgery products aided growth. The increase in volume was driven by the improvement in supply chain constraints related to electronic components, primarily semiconductor chips.
Hologic, Inc. Price
Hologic, Inc. price | Hologic, Inc. Quote
Lately, as the severity of the pandemic is over, Hologic’s Molecular Diagnostics business has been registering strong growth, driven by a combination of newer assays like BV, CV/TV and contributions from Amgen and HSV, as well as strong growth from longstanding women's health menu.
Further, the company’s expanded global installed base of Panthers (more than 3,250) is 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 the Panther and Panther Fusion systems creates tremendous value for customers and differentiates Hologic from competitors.
Over the past year, shares have risen 11.5% compared with the industry’s 0.4% rise.
On the flip side, during the COVID-19 public health emergency, Hologic launched several assays to detect COVID. However, the company is experiencing a continuous decline in COVID testing-related demand and it is expected to worsen in 2023 as customer testing and therapy, and vaccine demand decline.
In the third quarter of fiscal 2023, COVID-19 revenues, which consist of COVID-19 assay revenues and other COVID-19 related revenues and revenues from discontinued products, decreased 74.6% or 74.4% in constant currency.
We remain worried about the significant challenges Hologic faces owing to an unfavorable foreign currency impact that has been affecting the company’s overall performance in the past few quarters. The company’s international sales are often denominated in foreign currencies, including the euro, UK pound and renminbi. Changes in currency exchange rates, particularly the increase in the value of the dollar against any such foreign currencies, may reduce the reported value of Hologic’s revenues and associated cash flows outside the United States.
During the nine-month period in fiscal 2023 (ending Jul 1, 2023), the company experienced an adverse impact from foreign currency translation on its Diagnostics, Breast Health and Skeletal Health international sales.
Key Picks
Some better-ranked stocks in the broader medical space are Haemonetics (HAE - Free Report) , Quanterix (QTRX - Free Report) and SiBone (SIBN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics’ stock has risen 19.7% in the past year. Earnings estimates for Haemonetics have increased from $3.56 to $3.74 for 2023 and from $3.96 to $4.07 for 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.39%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for Quanterix’s 2023 loss per share have narrowed from $1.19 to 97 cents in the past 30 days. Shares of the company have increased 186% in the past year against the industry’s decline of 22.5%.
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for SiBone’s 2023 loss have narrowed from $1.42 to $1.27 per share in the past 30 days. Shares of the company have increased 23.3% in the past year compared with the industry’s rise of 2.3%.
SIBN’s earnings beat estimates in all the trailing four quarters, the average surprise being 20.37%. In the last reported quarter, SiBone delivered an earnings surprise of 26.83%.