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 Stock Falls Despite Q3 Earnings and Revenue Beat, Margins Down
Read MoreHide Full Article
Key Takeaways
HOLX posted Q3 adjusted EPS of $1.08 and revenues of $1.02B, both topping consensus estimates.
Hologic's Diagnostics and Surgical units grew, but Breast Health revenues dropped on lower capital sales.
Hologic's adjusted operating margin fell 110 bps, impacted by expected margin dilution from acquisitions.
Hologic, Inc. (HOLX - Free Report) reported adjusted earnings per share (EPS) of $1.08 in the third quarter of fiscal 2025, up 1.9% year over year. The metric surpassed the Zacks Consensus Estimate by 2.86%.
The adjustments include charges and benefits related to the amortization of acquired intangible assets, restructuring and integration/consolidation costs and many others. The company’s GAAP EPS was 86 cents in the quarter, which increased 4.9% year over year.
HOLX’s Q3 Revenues
Revenues totaled $1.02 billion in the quarter, up 1.2% year over year (0.4% at the constant exchange rate or CER). The top line surpassed the Zacks Consensus Estimate by 1.68%.
However, following the earnings announcement, HOLX shares dropped 0.7% in yesterday’s after-hours session.
HOLX’s Q3 Revenues by Region
In the fiscal third quarter, U.S. revenues fell 0.6% to $760.7 million. This missed our model’s projection of $749.5 million.
International revenues amounted to $263.1 million, up 6.9% year over year (3.5% at CER). Our model’s projection was $252.3 million.
HOLX’s Segmental Breakdown of Q3 Revenues
Diagnostics
Revenues in the segment increased 1.8% year over year (up 0.9% at CER) to $448.9 million in the quarter, mainly driven by higher molecular diagnostics sales. Excluding COVID-19 revenues, organic Diagnostics revenues increased 3.9% on a reported basis. This compares with our model’s segmental projection of $436 million.
Within the division, Cytology & Perinatal revenues of $121.4 million dropped 2.2% at CER. This compares with our model’s segmental projection of $115.5 million.
Molecular Diagnostics revenues of $320.5 million increased 2.4% at CER. Our model forecast was $314.6 million.
Blood Screening revenues of $7 million fell 11.4% year over year at CER. Our model forecast for the business was $6 million.
Breast Health
The segment’s revenues decreased 5.1% from the year-ago period (down 5.8% at CER) to $365.2 million. The downside was due to lower sales of mammography capital equipment, as anticipated. Our model projected revenues of $366.8 million for this segment.
Excluding the divested SSI and acquired Endomagnetics businesses, organic Breast Health revenues decreased 10.1% (10.8% at constant currency).
GYN Surgical
Surgical revenues grew 7.1% year over year (6.3% at CER) to $178.4 million, primarily driven by the acquired Gynesonics business and strong international sales. Our model projected revenues of $177.3 million in this segment.
Skeletal Health
Revenues surged 64.7% year over year (62.1% at CER) to $31.3 million. Our model projected revenues of $26.6 million for this segment.
Hologic’s Operational Update
In the fiscal third quarter, the company-provided adjusted gross margin decreased 80 basis points (bps) to 60.3%, mainly due to the product mix and increased reserves.
Hologic’s adjusted operating margin was 30.1%, a contraction of 110 bps, due to expected margin dilution from the inclusion of Endomagnetics and Gynesonics results.
HOLX’s Financial Update
Hologic ended the third quarter of fiscal 2025 with cash and cash equivalents of $1.74 billion compared with $1.43 billion at the end of the first quarter.
Total long-term debt (including the current portion) was $2.51 billion compared with $2.52 billion at the second quarter-end.
Net cash provided by operating activities at the end of the fiscal third quarter was $702 million compared with $918.2 million a year ago.
Hologic’s Fiscal 2025 & Q4 View
Revenues for the full fiscal 2025 are now expected in the band of $4.08-$4.09 billion (earlier $4.05-$4.10 billion), representing a year-over-year increase of 1.3%-1.5%. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $4.08 billion.
Hologic now anticipates fiscal 2025 adjusted EPS in the range of $4.23-$4.26 (previously $4.15-$4.25). The updated projections indicate 3.7%-4.4% growth year over year. The Zacks Consensus Estimate for the same is pegged at $4.19.
For the fourth quarter of fiscal 2025, the company forecasts revenues between $1.03 billion and $1.04 billion, suggesting a year-over-year increase of 4.3%-5.3% on a reported basis. The Zacks Consensus Estimate for the metric is pegged at $1.04 billion.
Adjusted EPS is estimated between $1.09 and $1.12, which implies 7.9% to 10.9% growth year over year. The Zacks Consensus Estimate for the metric currently stands at $1.09.
Our Take on HOLX Stock
Hologic delivered earnings and revenue beats in the third quarter of fiscal 2025. Both metrics surpassed the company’s internal expectations as well. Hologic made meaningful progress toward returning to better top and bottom-line growth by year-end. Diagnostics and Surgical continued to perform well, while Skeletal Health also provided a boost. In Breast Health, Hologic shipped more 3D gantries than in the previous quarter, driving the sequential improvement it had projected. The company is also working on mitigating the impact of global tariffs on its business, which is encouraging.
On the flip side, both the gross and operating margins contracted in the quarter. Hologic expects continued pressure on its Diagnostics business outside the United States due to the challenging operating environment in China and reduced funding for HIV testing in Africa.
HOLX’s Zacks Rank and Key Picks
Hologic currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Medpace Holdings (MEDP - Free Report) , GeneDx Holdings (WGS - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace Holdings, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2025 EPS of $3.1, which beat the Zacks Consensus Estimate by 3.33%. Revenues of $603.3 million topped the consensus mark by 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MEDP has a historical five-year earnings growth rate of 30.9% compared with the S&P 500 composite’s 10.1% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 13.87%.
GeneDx Holdings, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter 2025 adjusted EPS of 50 cents, exceeding the Zacks Consensus Estimate by a remarkable 400%. Revenues of $102.7 million surpassed the Zacks Consensus Estimate by 21.24%.
WGS has an estimated earnings growth rate of 79.6% for 2026 compared with the industry’s 18.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 231.40%.
Boston Scientific, currently carrying a Zacks Rank #2, reported a second-quarter 2025 adjusted EPS of 75 cents, which topped the Zacks Consensus Estimate by 4.2%.
BSX has a historical five-year earnings growth rate of 13.3% compared with the industry’s 2.7% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.11%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Hologic Stock Falls Despite Q3 Earnings and Revenue Beat, Margins Down
Key Takeaways
Hologic, Inc. (HOLX - Free Report) reported adjusted earnings per share (EPS) of $1.08 in the third quarter of fiscal 2025, up 1.9% year over year. The metric surpassed the Zacks Consensus Estimate by 2.86%.
The adjustments include charges and benefits related to the amortization of acquired intangible assets, restructuring and integration/consolidation costs and many others. The company’s GAAP EPS was 86 cents in the quarter, which increased 4.9% year over year.
HOLX’s Q3 Revenues
Revenues totaled $1.02 billion in the quarter, up 1.2% year over year (0.4% at the constant exchange rate or CER). The top line surpassed the Zacks Consensus Estimate by 1.68%.
However, following the earnings announcement, HOLX shares dropped 0.7% in yesterday’s after-hours session.
HOLX’s Q3 Revenues by Region
In the fiscal third quarter, U.S. revenues fell 0.6% to $760.7 million. This missed our model’s projection of $749.5 million.
Hologic, Inc. Price, Consensus and EPS Surprise
Hologic, Inc. price-consensus-eps-surprise-chart | Hologic, Inc. Quote
International revenues amounted to $263.1 million, up 6.9% year over year (3.5% at CER). Our model’s projection was $252.3 million.
HOLX’s Segmental Breakdown of Q3 Revenues
Diagnostics
Revenues in the segment increased 1.8% year over year (up 0.9% at CER) to $448.9 million in the quarter, mainly driven by higher molecular diagnostics sales. Excluding COVID-19 revenues, organic Diagnostics revenues increased 3.9% on a reported basis. This compares with our model’s segmental projection of $436 million.
Within the division, Cytology & Perinatal revenues of $121.4 million dropped 2.2% at CER. This compares with our model’s segmental projection of $115.5 million.
Molecular Diagnostics revenues of $320.5 million increased 2.4% at CER. Our model forecast was $314.6 million.
Blood Screening revenues of $7 million fell 11.4% year over year at CER. Our model forecast for the business was $6 million.
Breast Health
The segment’s revenues decreased 5.1% from the year-ago period (down 5.8% at CER) to $365.2 million. The downside was due to lower sales of mammography capital equipment, as anticipated. Our model projected revenues of $366.8 million for this segment.
Excluding the divested SSI and acquired Endomagnetics businesses, organic Breast Health revenues decreased 10.1% (10.8% at constant currency).
GYN Surgical
Surgical revenues grew 7.1% year over year (6.3% at CER) to $178.4 million, primarily driven by the acquired Gynesonics business and strong international sales. Our model projected revenues of $177.3 million in this segment.
Skeletal Health
Revenues surged 64.7% year over year (62.1% at CER) to $31.3 million. Our model projected revenues of $26.6 million for this segment.
Hologic’s Operational Update
In the fiscal third quarter, the company-provided adjusted gross margin decreased 80 basis points (bps) to 60.3%, mainly due to the product mix and increased reserves.
Hologic’s adjusted operating margin was 30.1%, a contraction of 110 bps, due to expected margin dilution from the inclusion of Endomagnetics and Gynesonics results.
HOLX’s Financial Update
Hologic ended the third quarter of fiscal 2025 with cash and cash equivalents of $1.74 billion compared with $1.43 billion at the end of the first quarter.
Total long-term debt (including the current portion) was $2.51 billion compared with $2.52 billion at the second quarter-end.
Net cash provided by operating activities at the end of the fiscal third quarter was $702 million compared with $918.2 million a year ago.
Hologic’s Fiscal 2025 & Q4 View
Revenues for the full fiscal 2025 are now expected in the band of $4.08-$4.09 billion (earlier $4.05-$4.10 billion), representing a year-over-year increase of 1.3%-1.5%. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $4.08 billion.
Hologic now anticipates fiscal 2025 adjusted EPS in the range of $4.23-$4.26 (previously $4.15-$4.25). The updated projections indicate 3.7%-4.4% growth year over year. The Zacks Consensus Estimate for the same is pegged at $4.19.
For the fourth quarter of fiscal 2025, the company forecasts revenues between $1.03 billion and $1.04 billion, suggesting a year-over-year increase of 4.3%-5.3% on a reported basis. The Zacks Consensus Estimate for the metric is pegged at $1.04 billion.
Adjusted EPS is estimated between $1.09 and $1.12, which implies 7.9% to 10.9% growth year over year. The Zacks Consensus Estimate for the metric currently stands at $1.09.
Our Take on HOLX Stock
Hologic delivered earnings and revenue beats in the third quarter of fiscal 2025. Both metrics surpassed the company’s internal expectations as well. Hologic made meaningful progress toward returning to better top and bottom-line growth by year-end. Diagnostics and Surgical continued to perform well, while Skeletal Health also provided a boost. In Breast Health, Hologic shipped more 3D gantries than in the previous quarter, driving the sequential improvement it had projected. The company is also working on mitigating the impact of global tariffs on its business, which is encouraging.
On the flip side, both the gross and operating margins contracted in the quarter. Hologic expects continued pressure on its Diagnostics business outside the United States due to the challenging operating environment in China and reduced funding for HIV testing in Africa.
HOLX’s Zacks Rank and Key Picks
Hologic currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Medpace Holdings (MEDP - Free Report) , GeneDx Holdings (WGS - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace Holdings, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2025 EPS of $3.1, which beat the Zacks Consensus Estimate by 3.33%. Revenues of $603.3 million topped the consensus mark by 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MEDP has a historical five-year earnings growth rate of 30.9% compared with the S&P 500 composite’s 10.1% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 13.87%.
GeneDx Holdings, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter 2025 adjusted EPS of 50 cents, exceeding the Zacks Consensus Estimate by a remarkable 400%. Revenues of $102.7 million surpassed the Zacks Consensus Estimate by 21.24%.
WGS has an estimated earnings growth rate of 79.6% for 2026 compared with the industry’s 18.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 231.40%.
Boston Scientific, currently carrying a Zacks Rank #2, reported a second-quarter 2025 adjusted EPS of 75 cents, which topped the Zacks Consensus Estimate by 4.2%.
BSX has a historical five-year earnings growth rate of 13.3% compared with the industry’s 2.7% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.11%.