We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Will Non-COVID-19 Diagnostics Sales Drive Hologic's Q4 Earnings?
Read MoreHide Full Article
Hologic, Inc.’s (HOLX - Free Report) Diagnostics segment, excluding COVID-19 assay and related revenues, is expected to have significantly benefited from the robust Panther utilization in its Molecular Diagnostics franchise. Higher gantry deliveries and robust service revenues are likely to have contributed to the Breast Health segment’s performance. Furthermore, MyoSure is likely to have emerged as the key driver of the GYN Surgical division’s revenues.
We anticipate that the company’s fiscal 2024 fourth-quarter financial results, slated to be released on Nov. 4 after the closing bell, will reflect these aspects.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In the meantime, click here to see if the stock could be a good bet before earnings.
HOLX’s Segments in Detail
Diagnostics
Quarter after quarter, the core Molecular Diagnostics business has been leading the way for Hologic’s Diagnostics segment. The company holds a competitive advantage with Panther due to its efficient workflow, automation, ease of use and continuously expanding menu on the platform. In the fourth quarter of fiscal 2024, the number of Panther placements is expected to have increased globally. Both revenues per Panther and the number of assays run per Panther are likely to have risen, positively impacting the overall business revenues.
The BV/CV/TV vaginitis panel is likely to have continued its remarkable growth trajectory. The test is currently ranked the second-largest worldwide. Hologic’s largest molecular diagnostics category, STI testing, may have driven robust U.S. molecular revenues and also performed well internationally. In the fiscal fourth quarter, there may have been higher non-COVID-19 respiratory assay sales, reflecting the continued adoption of the four-plex COVID, Flu A, Flu B and RSV assay. The Biotheranostics business is expected to have remained accretive to growth for the Molecular business.
Hologic’s Cytology and Perinatal business may have delivered a robust international performance from the ongoing adoption of the Genius AI Digital Diagnostics system. Following elevated U.S. sales in fiscal 2023 due to third-party shipping constraints, cytology sales are expected to have witnessed modest growth in the to-be-reported quarter.
According to our model forecast, Diagnostics revenues are likely to increase 3.1% in the fourth quarter of fiscal 2024.
Breast Health
Hologic is expected to have benefited from the continuous strong demand for Breast Health products and services. Product revenues are likely to have increased in the fiscal fourth quarter, led by higher sales volumes of digital mammography systems, primarily 3Dimensions systems, and related workstation and workflow products, including software.
Meanwhile, the Breast Imaging business may have driven robust domestic and international revenues. An increase in gantry shipments and higher service revenues are likely to have aided the strong performance, contributing to the division’s growth. We also assume the company to have succeeded in delivering more gantries than fiscal 2023.
Hologic acquired UK-based Endomagnetics in July 2024, expanding its interventional breast health portfolio with wireless breast surgery localization and lymphatic tracing solutions. The addition diversified the Breast Health business and introduced more recurring revenue streams. Endomagnetics is expected to have contributed an estimated $4 million-$5 million to the fiscal fourth-quarter’s top line, consistent with Hologic’s guidance.
Our model projects a 4.4% increase in Hologic’s Breast Health segment revenues for the fourth quarter of fiscal 2024.
GYN Surgical
The segment’s performance in the to-be-reported quarter may have been led by its key drivers, MyoSure and the related Fluent Fluid Management System. Contributions from the Laparoscopic portfolio are also likely to have been robust despite having smaller revenues than other Surgical business lines.
MyoSure’s international growth rate is expected to have been higher than in the U.S. market, driven by vastly underpenetrated markets and robust demand for minimally invasive options to treat uterine polyps and fibroids. This is also expected to have strongly favored the International Surgical Business’s performance in the fiscal fourth quarter.
Our model projects GYN Surgical revenues to increase 4.9% in the fourth quarter of fiscal 2024 from the comparable 2023 period.
Skeletal Health
The segment has been impacted by a temporary stop ship implemented due to a non-conformance pertaining to electromagnetic compatibility requirements, leading to decreased sales volume of the Horizon DXA systems. The company has been working to resolve the issue with its suppliers and expects to resume shipments in the coming months. Hologic’s Insight FD systems have also seen a declining sales volume from competitive pressures. We expect the situation to have gradually improved, resulting in a modest improvement in the business revenues.
Our model forecast indicates a 1.4% improvement in the Skeletal Health revenues in the fourth quarter of fiscal 2024.
Earnings Whispers for HOLX
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is the case here:
Earnings ESP: Hologic has an Earnings ESP of +0.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
BDX’s earnings surpassed estimates in three of the trailing four quarters and broke even once, the average beat being 6.2%. The Zacks Consensus Estimate for the company’s third-quarter EPS is expected to increase 10.2% from the year-ago quarter figure.
Haemonetics (HAE - Free Report) has an Earnings ESP of +0.18% and a Zacks Rank #2. The company is slated to release second-quarter fiscal 2025 results on Nov. 7.
HAE’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average beat being 3.5%. The Zacks Consensus Estimate for Haemonetics’ second-quarter EPS is expected to increase by 10.1% from the year-ago quarter figure.
Masimo (MASI - Free Report) has an Earnings ESP of +0.40% and a Zacks Rank #2. The company is slated to release third-quarter 2024 results on Nov. 5.
The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 14.6%. The Zacks Consensus Estimate for MASI’s 2024 third-quarter EPS is expected to improve by 33.3% from the year-ago reported figure.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Will Non-COVID-19 Diagnostics Sales Drive Hologic's Q4 Earnings?
Hologic, Inc.’s (HOLX - Free Report) Diagnostics segment, excluding COVID-19 assay and related revenues, is expected to have significantly benefited from the robust Panther utilization in its Molecular Diagnostics franchise. Higher gantry deliveries and robust service revenues are likely to have contributed to the Breast Health segment’s performance. Furthermore, MyoSure is likely to have emerged as the key driver of the GYN Surgical division’s revenues.
We anticipate that the company’s fiscal 2024 fourth-quarter financial results, slated to be released on Nov. 4 after the closing bell, will reflect these aspects.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In the meantime, click here to see if the stock could be a good bet before earnings.
HOLX’s Segments in Detail
Diagnostics
Quarter after quarter, the core Molecular Diagnostics business has been leading the way for Hologic’s Diagnostics segment. The company holds a competitive advantage with Panther due to its efficient workflow, automation, ease of use and continuously expanding menu on the platform. In the fourth quarter of fiscal 2024, the number of Panther placements is expected to have increased globally. Both revenues per Panther and the number of assays run per Panther are likely to have risen, positively impacting the overall business revenues.
The BV/CV/TV vaginitis panel is likely to have continued its remarkable growth trajectory. The test is currently ranked the second-largest worldwide. Hologic’s largest molecular diagnostics category, STI testing, may have driven robust U.S. molecular revenues and also performed well internationally. In the fiscal fourth quarter, there may have been higher non-COVID-19 respiratory assay sales, reflecting the continued adoption of the four-plex COVID, Flu A, Flu B and RSV assay. The Biotheranostics business is expected to have remained accretive to growth for the Molecular business.
Hologic’s Cytology and Perinatal business may have delivered a robust international performance from the ongoing adoption of the Genius AI Digital Diagnostics system. Following elevated U.S. sales in fiscal 2023 due to third-party shipping constraints, cytology sales are expected to have witnessed modest growth in the to-be-reported quarter.
According to our model forecast, Diagnostics revenues are likely to increase 3.1% in the fourth quarter of fiscal 2024.
Breast Health
Hologic is expected to have benefited from the continuous strong demand for Breast Health products and services. Product revenues are likely to have increased in the fiscal fourth quarter, led by higher sales volumes of digital mammography systems, primarily 3Dimensions systems, and related workstation and workflow products, including software.
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
Meanwhile, the Breast Imaging business may have driven robust domestic and international revenues. An increase in gantry shipments and higher service revenues are likely to have aided the strong performance, contributing to the division’s growth. We also assume the company to have succeeded in delivering more gantries than fiscal 2023.
Hologic acquired UK-based Endomagnetics in July 2024, expanding its interventional breast health portfolio with wireless breast surgery localization and lymphatic tracing solutions. The addition diversified the Breast Health business and introduced more recurring revenue streams. Endomagnetics is expected to have contributed an estimated $4 million-$5 million to the fiscal fourth-quarter’s top line, consistent with Hologic’s guidance.
Our model projects a 4.4% increase in Hologic’s Breast Health segment revenues for the fourth quarter of fiscal 2024.
GYN Surgical
The segment’s performance in the to-be-reported quarter may have been led by its key drivers, MyoSure and the related Fluent Fluid Management System. Contributions from the Laparoscopic portfolio are also likely to have been robust despite having smaller revenues than other Surgical business lines.
MyoSure’s international growth rate is expected to have been higher than in the U.S. market, driven by vastly underpenetrated markets and robust demand for minimally invasive options to treat uterine polyps and fibroids. This is also expected to have strongly favored the International Surgical Business’s performance in the fiscal fourth quarter.
Our model projects GYN Surgical revenues to increase 4.9% in the fourth quarter of fiscal 2024 from the comparable 2023 period.
Skeletal Health
The segment has been impacted by a temporary stop ship implemented due to a non-conformance pertaining to electromagnetic compatibility requirements, leading to decreased sales volume of the Horizon DXA systems. The company has been working to resolve the issue with its suppliers and expects to resume shipments in the coming months. Hologic’s Insight FD systems have also seen a declining sales volume from competitive pressures. We expect the situation to have gradually improved, resulting in a modest improvement in the business revenues.
Our model forecast indicates a 1.4% improvement in the Skeletal Health revenues in the fourth quarter of fiscal 2024.
Earnings Whispers for HOLX
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is the case here:
Earnings ESP: Hologic has an Earnings ESP of +0.21%. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:
Becton, Dickinson and Company (BDX - Free Report) have an Earnings ESP of +0.91% and a Zacks Rank #2. The company is slated to release third-quarter 2024 results on Nov. 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
BDX’s earnings surpassed estimates in three of the trailing four quarters and broke even once, the average beat being 6.2%. The Zacks Consensus Estimate for the company’s third-quarter EPS is expected to increase 10.2% from the year-ago quarter figure.
Haemonetics (HAE - Free Report) has an Earnings ESP of +0.18% and a Zacks Rank #2. The company is slated to release second-quarter fiscal 2025 results on Nov. 7.
HAE’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average beat being 3.5%. The Zacks Consensus Estimate for Haemonetics’ second-quarter EPS is expected to increase by 10.1% from the year-ago quarter figure.
Masimo (MASI - Free Report) has an Earnings ESP of +0.40% and a Zacks Rank #2. The company is slated to release third-quarter 2024 results on Nov. 5.
The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 14.6%. The Zacks Consensus Estimate for MASI’s 2024 third-quarter EPS is expected to improve by 33.3% from the year-ago reported figure.