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.
Hologic's International Momentum Takes Shape: Will Execution Pay Off?
Read MoreHide Full Article
Key Takeaways
HOLX now earns 25% of revenues internationally, with room to expand compared to peers.
Hologic's International Surgical sales rose 16.2% in Q2, led by strong MyoSure and NovaSure performance.
HOLX sees a global drag from Korea strikes, China headwinds and lower HIV testing in Africa.
International expansion continues to play a central role in Hologic’s (HOLX - Free Report) growth strategy. Currently, it generates around 25% of its total revenues from outside the United States — a lower proportion compared to other medical technology companies. Over the past decade, the company has made targeted investments toward international expansion and commercial capabilities, which have delivered more than 10% international growth annually. Even so, the underpenetration presents significant room for expansion.
While many of Hologic’s product successes began in the United States, it has now built the capabilities to scale internationally on a consistent basis. In its Surgical division, the company continues to invest organically, especially in the International business, where it has delivered more than 20% growth for several years. The momentum is supported by increased reimbursement and the promotion of guidelines for its portfolio of product offerings. In the fiscal second quarter of 2025, the International Surgical business rose 16.2% year over year.
MyoSure is seeing even faster gains abroad, fueled by vastly untapped markets and higher demand for minimally invasive options to treat uterine polyps and fibroids. Newly acquired Gynesonics gave a boost, having already generated a healthy mix of international sales before joining Hologic. Now with the support of Hologic’s large Gyn sales force, Gynesonics’ sales are expected to grow at a strong double-digit rate. NovaSure is also seeing higher sales volume in Europe despite posting domestic declines.
That said, global exposure brings added operational challenges. The company’s second-quarter international sales were hurt by the ongoing physician strike in South Korea, reduced hospital spending in China and lower HIV testing sales in Africa due to USAID funding cuts. In China, Hologic’s cytology business is now weighed down by tariff implications, anti-American sentiment and intensifying local competition.
International Performance of Hologic’s Top Rivals
Becton, Dickinson and Company (BDX - Free Report) , or BD, derives a significant portion of its revenues from overseas, with products being distributed either directly or through independent distribution channels and sales representatives. In the second quarter of 2025, BD’s international revenues increased 1.2%, driven by gains in the Medical segment’s Pharmaceutical Systems unit and the acquired Advanced Patient Monitoring unit’s sales. Based on tariffs in effect as of April 30, 2025, BD anticipates a $90 million hit to fiscal year 2025 operating expenses.
Abbott (ABT - Free Report) , too, maintains a strong global footprint, with sales outside the United States accounting for approximately 61% of its 2024 net sales. In the second quarter of 2025, international sales increased 6.6% year over year. Abbott remains the global leader in adult nutrition, supported by continued demand for its Ensure and Glucerna brands. ABT’s Electrophysiology division also drove strong performance across 15 key markets — including India, China, and other markets across Asia, Latin America and the Middle East — representing some of the most attractive growth areas for branded generic medicines.
HOLX Stock Performance, Valuation and Estimates
Year to date, Hologic shares have declined 8.5% compared with the industry’s 10.2% fall.
Image Source: Zacks Investment Research
Hologic is trading at a forward five-year price-to-earnings of 14.84X, lower than the industry average of 28.28X. The stock carries a Value Score of B at present.
Image Source: Zacks Investment Research
Consensus estimates for Hologic’s fiscal 2025 EPS are showing a downward trend for the past 90 days.
Image Source: Zacks Investment Research
HOLX stock currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
Hologic's International Momentum Takes Shape: Will Execution Pay Off?
Key Takeaways
International expansion continues to play a central role in Hologic’s (HOLX - Free Report) growth strategy. Currently, it generates around 25% of its total revenues from outside the United States — a lower proportion compared to other medical technology companies. Over the past decade, the company has made targeted investments toward international expansion and commercial capabilities, which have delivered more than 10% international growth annually. Even so, the underpenetration presents significant room for expansion.
While many of Hologic’s product successes began in the United States, it has now built the capabilities to scale internationally on a consistent basis. In its Surgical division, the company continues to invest organically, especially in the International business, where it has delivered more than 20% growth for several years. The momentum is supported by increased reimbursement and the promotion of guidelines for its portfolio of product offerings. In the fiscal second quarter of 2025, the International Surgical business rose 16.2% year over year.
MyoSure is seeing even faster gains abroad, fueled by vastly untapped markets and higher demand for minimally invasive options to treat uterine polyps and fibroids. Newly acquired Gynesonics gave a boost, having already generated a healthy mix of international sales before joining Hologic. Now with the support of Hologic’s large Gyn sales force, Gynesonics’ sales are expected to grow at a strong double-digit rate. NovaSure is also seeing higher sales volume in Europe despite posting domestic declines.
That said, global exposure brings added operational challenges. The company’s second-quarter international sales were hurt by the ongoing physician strike in South Korea, reduced hospital spending in China and lower HIV testing sales in Africa due to USAID funding cuts. In China, Hologic’s cytology business is now weighed down by tariff implications, anti-American sentiment and intensifying local competition.
International Performance of Hologic’s Top Rivals
Becton, Dickinson and Company (BDX - Free Report) , or BD, derives a significant portion of its revenues from overseas, with products being distributed either directly or through independent distribution channels and sales representatives. In the second quarter of 2025, BD’s international revenues increased 1.2%, driven by gains in the Medical segment’s Pharmaceutical Systems unit and the acquired Advanced Patient Monitoring unit’s sales. Based on tariffs in effect as of April 30, 2025, BD anticipates a $90 million hit to fiscal year 2025 operating expenses.
Abbott (ABT - Free Report) , too, maintains a strong global footprint, with sales outside the United States accounting for approximately 61% of its 2024 net sales. In the second quarter of 2025, international sales increased 6.6% year over year. Abbott remains the global leader in adult nutrition, supported by continued demand for its Ensure and Glucerna brands. ABT’s Electrophysiology division also drove strong performance across 15 key markets — including India, China, and other markets across Asia, Latin America and the Middle East — representing some of the most attractive growth areas for branded generic medicines.
HOLX Stock Performance, Valuation and Estimates
Year to date, Hologic shares have declined 8.5% compared with the industry’s 10.2% fall.
Image Source: Zacks Investment Research
Hologic is trading at a forward five-year price-to-earnings of 14.84X, lower than the industry average of 28.28X. The stock carries a Value Score of B at present.
Image Source: Zacks Investment Research
Consensus estimates for Hologic’s fiscal 2025 EPS are showing a downward trend for the past 90 days.
Image Source: Zacks Investment Research
HOLX stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.