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Breast Health Performance Likely to Aid Hologic's Q1 Earnings
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With Hologic, Inc. (HOLX - Free Report) gearing up to release its fiscal 2025 first-quarter financial results on Feb. 5 after the market closes, the company’s Breast Health segment is expected to have benefited from gantry and imaging service businesses and the expanding interventional portfolio. The Diagnostics division is expected to have gained from the strong Molecular Diagnostics momentum. Additionally, international sales may have bolstered the GYN Surgical segment’s performance.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Wondering if this stock is a good pick before earnings? Our analysis can help you out.
HOLX’s Segments in Detail
Breast Health
The segment generates a bulk of service revenues from the service contracts related to the digital mammography portfolio. In the first quarter of fiscal 2025, robust breast imaging service revenues are expected to have bolstered the performance. Hologic’s gantry business, which experienced elevated growth in the past two fiscal years due to global chip shortage recovery, is expected to stabilize in fiscal 2025, ahead of the next-generation gantry launch. There may have been higher sales volumes of digital mammography systems, primarily 3Dimensions systems, and related workstation and workflow products in the first quarter, boosting HOLX’s overall revenues.
The breast interventional business may have continued to benefit from solid demand for Hologic’s portfolio of disposable needles and markers. The acquisition of Endomagnetics has added wire-free breast surgery localization and lymphatic tracing solutions, including the Magseed marker, the Magtrace lymphatic tracer and the Sentimag platform, further enhancing the breast surgery portfolio and increasing recurring revenue opportunities.
Our model projects a 3.9% increase in Hologic’s Breast Health segment revenues for the first quarter of fiscal 2025.
Diagnostics
The molecular diagnostics business has been a consistent growth driver in this division, powered by an installed base of more than 3,300 high-throughput Panther systems worldwide. The systems continue to drive demand for their superior workflow, automation, ease of use and ongoing menu expansion, giving Hologic a competitive edge in the industry. In the first quarter of fiscal 2025, Molecular performance is expected to be led by the ongoing adoption of the BV/CV/TV assay on Panther.
The company may have continued to witness accretive growth from the biotheranostics business due to the expanding use and coverage of the breast cancer index (BCI) test. Amid the ongoing respiratory season, we assume the division’s 4-plex, COVID/Flu A/B/RSV assay also favored the growth. In the cytology and perinatal business, Hologic’s AI-powered Genius Digital Diagnostic System has been highly praised by early adopters for its enhanced sensitive disease detection and streamlined efficiency. With the system now live for U.S. customers, this is expected to have boosted the revenues as well in the to-be-reported quarter.
According to our model forecast, Diagnostics revenues are likely to increase 1.7% year over year in the first quarter of fiscal 2025.
GYN Surgical
We expect the segment’s performance to be driven by robust sales of MyoSure devices and related Fluent fluid management products. The international Surgical business is likely to have contributed to Hologic’s first-quarter revenues by expanding access to technologies in more new markets. While the legacy NovaSure business may have registered lower domestic sales, the same internationally is expected to have been strong, particularly in Western Europe. Myosure’s overseas growth is likely to have surpassed its U.S. growth, driven by underpenetrated markets and rising demand for minimally invasive options for the treatment of uterine polyps and fibroids.
Our model projects GYN Surgical revenues to increase 1.4% in the first quarter of fiscal 2025 from the comparable 2024 period.
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 not the case here:
Earnings ESP: Hologic has an Earnings ESP of -0.13%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
Masimo (MASI - Free Report) has an Earnings ESP of +4.05% and a Zacks Rank #1. The company is set to release fourth-quarter 2024 results on Feb. 25.
MASI’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.10%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS is expected to increase 14.4% from the year-ago quarter figure.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank #2. The company is slated to release fourth-quarter 2024 results on Feb. 25.
MMSI’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.42%. The Zacks Consensus Estimate for Merit Medical’s fourth-quarter EPS is expected to increase 2.47% from the year-ago quarter figure.
Cencora (COR - Free Report) has an Earnings ESP of +0.71% and a Zacks Rank #2. The company is set to release first-quarter fiscal 2025 results on Feb. 2.
The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 2.45%. The Zacks Consensus Estimate for COR’s first-quarter EPS is expected to increase 7% from the year-ago reported figure.
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Breast Health Performance Likely to Aid Hologic's Q1 Earnings
With Hologic, Inc. (HOLX - Free Report) gearing up to release its fiscal 2025 first-quarter financial results on Feb. 5 after the market closes, the company’s Breast Health segment is expected to have benefited from gantry and imaging service businesses and the expanding interventional portfolio. The Diagnostics division is expected to have gained from the strong Molecular Diagnostics momentum. Additionally, international sales may have bolstered the GYN Surgical segment’s performance.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Wondering if this stock is a good pick before earnings? Our analysis can help you out.
HOLX’s Segments in Detail
Breast Health
The segment generates a bulk of service revenues from the service contracts related to the digital mammography portfolio. In the first quarter of fiscal 2025, robust breast imaging service revenues are expected to have bolstered the performance. Hologic’s gantry business, which experienced elevated growth in the past two fiscal years due to global chip shortage recovery, is expected to stabilize in fiscal 2025, ahead of the next-generation gantry launch. There may have been higher sales volumes of digital mammography systems, primarily 3Dimensions systems, and related workstation and workflow products in the first quarter, boosting HOLX’s overall revenues.
The breast interventional business may have continued to benefit from solid demand for Hologic’s portfolio of disposable needles and markers. The acquisition of Endomagnetics has added wire-free breast surgery localization and lymphatic tracing solutions, including the Magseed marker, the Magtrace lymphatic tracer and the Sentimag platform, further enhancing the breast surgery portfolio and increasing recurring revenue opportunities.
Our model projects a 3.9% increase in Hologic’s Breast Health segment revenues for the first quarter of fiscal 2025.
Diagnostics
The molecular diagnostics business has been a consistent growth driver in this division, powered by an installed base of more than 3,300 high-throughput Panther systems worldwide. The systems continue to drive demand for their superior workflow, automation, ease of use and ongoing menu expansion, giving Hologic a competitive edge in the industry. In the first quarter of fiscal 2025, Molecular performance is expected to be led by the ongoing adoption of the BV/CV/TV assay on Panther.
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
The company may have continued to witness accretive growth from the biotheranostics business due to the expanding use and coverage of the breast cancer index (BCI) test. Amid the ongoing respiratory season, we assume the division’s 4-plex, COVID/Flu A/B/RSV assay also favored the growth. In the cytology and perinatal business, Hologic’s AI-powered Genius Digital Diagnostic System has been highly praised by early adopters for its enhanced sensitive disease detection and streamlined efficiency. With the system now live for U.S. customers, this is expected to have boosted the revenues as well in the to-be-reported quarter.
According to our model forecast, Diagnostics revenues are likely to increase 1.7% year over year in the first quarter of fiscal 2025.
GYN Surgical
We expect the segment’s performance to be driven by robust sales of MyoSure devices and related Fluent fluid management products. The international Surgical business is likely to have contributed to Hologic’s first-quarter revenues by expanding access to technologies in more new markets. While the legacy NovaSure business may have registered lower domestic sales, the same internationally is expected to have been strong, particularly in Western Europe. Myosure’s overseas growth is likely to have surpassed its U.S. growth, driven by underpenetrated markets and rising demand for minimally invasive options for the treatment of uterine polyps and fibroids.
Our model projects GYN Surgical revenues to increase 1.4% in the first quarter of fiscal 2025 from the comparable 2024 period.
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 not the case here:
Earnings ESP: Hologic has an Earnings ESP of -0.13%. 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.
Top MedTech Picks
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
Masimo (MASI - Free Report) has an Earnings ESP of +4.05% and a Zacks Rank #1. The company is set to release fourth-quarter 2024 results on Feb. 25.
MASI’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.10%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS is expected to increase 14.4% from the year-ago quarter figure.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank #2. The company is slated to release fourth-quarter 2024 results on Feb. 25.
MMSI’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.42%. The Zacks Consensus Estimate for Merit Medical’s fourth-quarter EPS is expected to increase 2.47% from the year-ago quarter figure.
Cencora (COR - Free Report) has an Earnings ESP of +0.71% and a Zacks Rank #2. The company is set to release first-quarter fiscal 2025 results on Feb. 2.
The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 2.45%. The Zacks Consensus Estimate for COR’s first-quarter EPS is expected to increase 7% from the year-ago reported figure.