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Hologic (HOLX) to Report Q2 Earnings: What's in the Cards?

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Hologic, Inc. (HOLX - Free Report) is slated to report second-quarter fiscal 2024 results on May 2, after the closing bell.

In the last reported quarter, the company’s earnings of 98 cents per share surpassed the Zacks Consensus Estimate by 3.2%. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average surprise being 8.50%.

Let’s see how things have shaped up prior to the announcement

Factors at Play


In second-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 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.

Lately, Hologic’s Molecular Diagnostics business is likely to register 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 the longstanding women's health menu.  

In December 2023, Hologic launched a new FDA-approved Genius Digital Diagnostics System with the Genius Cervical AI algorithm. The launch marks the first and only FDA-cleared digital cytology system that combines deep-learning-based artificial intelligence (AI) with advanced volumetric imaging technology to help identify pre-cancerous lesions and cervical cancer cells. We believe this development to have a positive contribution to the company’s top line in the fiscal second quarter.

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.

Going by our model, HOLX’s Diagnostics business revenues are likely to have declined 5% year over year in the second quarter of 2024.

Breast Health

Hologic’s Breast Health segment is expected to register growth in the fiscal second quarter driven by robust demand for the company’s gantries. In the gantry business, Hologic continues to benefit from a strong cadence of orders. We believe this trend to continue through the fiscal second quarter as well, thus adding to the top line.

In addition, the strong performance of the Brevera needles, as well as from 2-Mark markers used for marking biopsy sites in suspicious lesions and pressed tissue, is likely to contribute to the company’s growth in the to-be-reported quarter.

Hologic, Inc. Price and EPS Surprise



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 the first-quarter 2024 earnings update, Hologic noted that the gantry backlog remained elevated compared with historical levels. We believe these trends to have continued through the fiscal second quarter, thus contributing to top-line growth.

Going by our model, HOLX’s Breast Health business revenues are likely to have declined 2.7% year over year in the second quarter of 2024.

GYN Surgical

Similar to the last reported quarter, Hologic’s GYN Surgical is expected to have registered vital contributions from MyoSure and the Related fluid system, with an increasing contribution from its laparoscopic portfolio. The company is likely to have benefited from the strong performance of its latest NovaSure iteration, the NovaSure V5, in the to-be-reported quarter.

Going by our model, HOLX’s GYN Surgical business revenues is expected to grow by 7.8% year over year in the second quarter of 2024.

The Estimate Picture

The Zacks Consensus Estimate for fiscal second-quarter 2024 revenues is pegged at $1.00 billion, suggesting a decline of 2.5% from the prior-year quarter’s figure.

The consensus estimate for earnings per share is pegged at 98 cents, indicating a fall of 7.6% from the year-ago reported figure.

What Our Model Suggests

Our proven model predicts 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.

Earnings ESP: Hologic has an Earnings ESP of +1.70%. 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.

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 quarter:

High Tide (HITI - Free Report) has an Earnings ESP of +175.00% and a Zacks Rank #1. The company is expected to release second-quarter fiscal 2024 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.

High Tide has an expected earnings growth rate of 100% for fiscal 2024. High Tide surpassed earnings in each of the trailing four quarters, the average being 91.67%.

ShockWave Medical (SWAV - Free Report) has an Earnings ESP of +14.51% and a Zacks Rank #3. The company is due to release first-quarter 2024 results on May 13.

SWAV has an expected long-term earnings growth rate of 27.2%. ShockWave Medical surpassed earnings in three of the trailing four quarters and missed in one, the average beat being 13.55%.

Edwards Lifesciences (EW - Free Report) currently has an Earnings ESP of +1.68% and a Zacks Rank #2. The company is scheduled to release its first-quarter 2024 results on Apr 25.

EW has a historical long-term earnings growth rate of 9.9%. In the trailing four quarters, Edwards Lifesciences delivered an average earnings surprise of 0.8%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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