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Hologic (HOLX) to Report Q1 Earnings: What's in the Cards?
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Hologic, Inc. (HOLX - Free Report) is slated to report first-quarter fiscal 2024 results on Feb 1, after the closing bell.
In the last reported quarter, the company’s earnings of 89 cents per share surpassed the Zacks Consensus Estimate by 4.7%. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average surprise being 12.43%.
Let’s see how things have shaped up prior to the announcement
Factors at Play
Diagnostics
In first-quarter fiscal 2024, 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 3,260 Panthers represents the catalyst for the division's sustained growth. As customers add more menus and drive incremental volume, Hologic’s Molecular Diagnostics business continues to grow. We believe these growth catalysts to have driven the company’s performance in the to-be-reported quarter.
As the severity of the pandemic is over, Hologic’s Molecular Diagnostics business is registering strong growth driven by a combination of newer assays like BV, CV/TV and contributions from Amgen and HSV and strong growth from the longstanding women's health menu. The company’s Biotheranostics business (acquired in 2021) is consistently delivering double-digit growth, being accretive even to its Molecular growth rate. We believe these trends to have continued through the fiscal first quarter as well, adding to the top line.
Similar to the last reported quarter, the Diagnostics business is expected to decline globally compared with the prior year’s levels due to significantly lower COVID testing.
Breast Health
In the past few quarters, semiconductor chip availability has continued to improve, allowing the delivery of more gantries. The exceptional demand for clinically differentiated mammography instruments remains high. During fourth-quarter 2023 earnings update, Hologic noted that the gantry backlog remained elevated compared with historical levels. We believe these trends to have continued through the fiscal first quarter, thus contributing to top-line growth.
Similar to the fourth quarter, we expect the Hologic Breast Health arm to witness an increase in sales of Trident systems unit and higher Faxitron breast-conserving surgery products, driven by the improvement in supply chain constraints related to electronic components, primarily semiconductor chips.
Since the past few months, the company has also witnessed increased sales of its interventional breast solutions products driven by Brevera systems and related needles. Hologic's breast service business continues to grow and is becoming an even larger part of the division's mix. The strong service performance represents stable contracted recurring revenues and deepens customer relationships. We expect these positive trends to back Hologic’s growth within Breast Health in the fiscal first quarter as well.
GYN Surgical
Similar to the last reported quarter, Hologic’s GYN Surgical is expected to have registered vital contributions from a hysteroscopic portfolio of MyoSure, the Fluent fluid management system and NovaSure. The company is likely to have benefitted from the strong performance of its latest NovaSure iteration, the NovaSure V5, in the to-be-reported quarter.
Internationally, the Surgical business continues to register strong growth. In the fiscal 2023, Hologic’s international Surgical growth rate was more than double the U.S. growth rate. We believe this positive trend is likely to have continued through the fiscal first quarter as well.
The Estimate Picture
The Zacks Consensus Estimate for total fiscal first-quarter 2024 revenues of $978.3 million suggests a decline of 8.9% from the prior-year quarter’s figure.
The consensus estimate for earnings per share is pegged at 94 cents, indicating a fall of 12.2% from the year-ago reported figure.
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 -0.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hologic currently carries a Zacks Rank #3 (Hold).
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.
SiBone has a long-term expected earnings growth rate of 15.2%. SIBN surpassed earnings in each of the trailing four quarters, the average being 24.21%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2. The company is due to release fourth quarter 2023 results on Feb 28, 2024.
MMSI has an expected long-term earnings growth rate of 11.5%. The company surpassed earnings in each of the trailing four quarters, the average being 14.41%.
ACADIA Pharmaceuticals (ACAD - Free Report) currently has an Earnings ESP of +15.18% and a Zacks Rank #2. The company is expected to release its fourth-quarter 2023 results in February 2024.
ACAD has a remarkable 2024 earnings growth rate of 415.2%. In the trailing four quarters, the company delivered an average earnings surprise of 20.7%.
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Hologic (HOLX) to Report Q1 Earnings: What's in the Cards?
Hologic, Inc. (HOLX - Free Report) is slated to report first-quarter fiscal 2024 results on Feb 1, after the closing bell.
In the last reported quarter, the company’s earnings of 89 cents per share surpassed the Zacks Consensus Estimate by 4.7%. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average surprise being 12.43%.
Let’s see how things have shaped up prior to the announcement
Factors at Play
Diagnostics
In first-quarter fiscal 2024, 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 3,260 Panthers represents the catalyst for the division's sustained growth. As customers add more menus and drive incremental volume, Hologic’s Molecular Diagnostics business continues to grow. We believe these growth catalysts to have driven the company’s performance in the to-be-reported quarter.
As the severity of the pandemic is over, Hologic’s Molecular Diagnostics business is registering strong growth driven by a combination of newer assays like BV, CV/TV and contributions from Amgen and HSV and strong growth from the longstanding women's health menu. The company’s Biotheranostics business (acquired in 2021) is consistently delivering double-digit growth, being accretive even to its Molecular growth rate. We believe these trends to have continued through the fiscal first quarter as well, adding to the top line.
Similar to the last reported quarter, the Diagnostics business is expected to decline globally compared with the prior year’s levels due to significantly lower COVID testing.
Breast Health
In the past few quarters, semiconductor chip availability has continued to improve, allowing the delivery of more gantries. The exceptional demand for clinically differentiated mammography instruments remains high. During fourth-quarter 2023 earnings update, Hologic noted that the gantry backlog remained elevated compared with historical levels. We believe these trends to have continued through the fiscal first quarter, thus contributing to top-line growth.
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
Similar to the fourth quarter, we expect the Hologic Breast Health arm to witness an increase in sales of Trident systems unit and higher Faxitron breast-conserving surgery products, driven by the improvement in supply chain constraints related to electronic components, primarily semiconductor chips.
Since the past few months, the company has also witnessed increased sales of its interventional breast solutions products driven by Brevera systems and related needles. Hologic's breast service business continues to grow and is becoming an even larger part of the division's mix. The strong service performance represents stable contracted recurring revenues and deepens customer relationships. We expect these positive trends to back Hologic’s growth within Breast Health in the fiscal first quarter as well.
GYN Surgical
Similar to the last reported quarter, Hologic’s GYN Surgical is expected to have registered vital contributions from a hysteroscopic portfolio of MyoSure, the Fluent fluid management system and NovaSure. The company is likely to have benefitted from the strong performance of its latest NovaSure iteration, the NovaSure V5, in the to-be-reported quarter.
Internationally, the Surgical business continues to register strong growth. In the fiscal 2023, Hologic’s international Surgical growth rate was more than double the U.S. growth rate. We believe this positive trend is likely to have continued through the fiscal first quarter as well.
The Estimate Picture
The Zacks Consensus Estimate for total fiscal first-quarter 2024 revenues of $978.3 million suggests a decline of 8.9% from the prior-year quarter’s figure.
The consensus estimate for earnings per share is pegged at 94 cents, indicating a fall of 12.2% from the year-ago reported figure.
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 -0.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hologic currently carries a Zacks Rank #3 (Hold).
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.
SiBone (SIBN - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #2. The company is expected to release fourth-quarter 2023 results in February 2024. You can see the complete list of today’s Zacks #1 Rank stocks here.
SiBone has a long-term expected earnings growth rate of 15.2%. SIBN surpassed earnings in each of the trailing four quarters, the average being 24.21%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2. The company is due to release fourth quarter 2023 results on Feb 28, 2024.
MMSI has an expected long-term earnings growth rate of 11.5%. The company surpassed earnings in each of the trailing four quarters, the average being 14.41%.
ACADIA Pharmaceuticals (ACAD - Free Report) currently has an Earnings ESP of +15.18% and a Zacks Rank #2. The company is expected to release its fourth-quarter 2023 results in February 2024.
ACAD has a remarkable 2024 earnings growth rate of 415.2%. In the trailing four quarters, the company delivered an average earnings surprise of 20.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.