Hologic, Inc.'s (HOLX) robust strength in the molecular diagnostics business places it well for growth in the upcoming quarters. The company's Breast Health franchise is now more diverse with the newest acquisition. Sound financial stability also bodes well. Meanwhile, the impact of macroeconomic conditions and adverse currency fluctuations remain a concern for Hologic's operations. In the past year, this Zacks Rank #3 (Hold) stock has rallied 8.2% compared with the 11.8% growth of the industry and a 26.3% ...

Women's health innovator, Hologic (HOLX) , reported third-quarter fiscal 2024 results on Jul 29 after market close. Revenues exceeded both the company's internal forecasts and the Zacks Consensus Estimate. The bottom line topped the consensus mark, although the extent of surprise lowered by nearly 37% than the previous quarter. Additionally, the ongoing supply headwinds in the company's Skeletal Health business factored into narrowed EPS guidance for the year. Following the earnings release, the stock rose ...

(1) See accompanying notes. | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------|-------|---------------------------------|------------------------| | | | Nine Months \nJune 29, 2024 | Ended \nJuly 1, 2023 | | OPERATING ACTIVITIES | | | | | Net income | $ | 610.9 $ | 365.4 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | Depreciation | | 75.2 | 66.7 | | Amortizat ...

Hologic, Inc. (HOLX) reported adjusted earnings per share (EPS) of $1.06 in the third quarter of fiscal 2024, up 14% year over year. The bottom line surpassed the Zacks Consensus Estimate by 3.9%. The adjustments include charges and benefits related to the amortization of acquired intangible assets, restructuring and integration/consolidation costs, product line discontinuation and many others. The company's GAAP EPS was 82 cents in the quarter compared to the year-ago quarter's loss of 16 cents. Revenues i ...

Financial Data and Key Metrics Changes - Total revenue for Q3 was $1.01 billion, with non-GAAP earnings per share at $1.06, both exceeding guidance [5][110] - Operating margin was 31.2%, a year-over-year increase of 230 basis points, driven by top-line growth and lower operating expenses [10][129] - Cash generated from operating activities exceeded $400 million, ending the quarter with $2.4 billion on the balance sheet [3][111] Business Line Data and Key Metrics Changes - Diagnostics revenue was $440.8 million, growing 0.7%, with Molecular Diagnostics growing 10.5% excluding COVID [112] - Breast Health revenue increased by 7.1%, driven by strong domestic and international results [115] - Surgical revenue was $166.6 million, increasing by 6.2%, with significant growth in MyoSure and the laparoscopic division [117] Market Data and Key Metrics Changes - International markets for molecular STI testing and cytology showed strong growth, indicating significant expansion opportunities [40][41] - The U.S. remains the largest market for STI testing, with ongoing efforts to increase market share internationally [41][42] - The breast health market is expected to grow, with strong demand for minimally invasive options in international markets [107] Company Strategy and Development Direction - The company is focused on capitalizing on international growth opportunities and expanding its product offerings [1][40] - The acquisition of Endomagnetics is seen as a strategic move to enhance the Breast Health franchise and drive revenue growth [108][130] - The company plans to continue share repurchases while pursuing tuck-in M&A opportunities [8][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to pre-COVID growth levels, with a focus on operational efficiency and market leadership [126][144] - The company anticipates continued strong performance across all franchises, with a robust balance sheet supporting future growth [104][111] - Management expects to navigate potential challenges in the cervical cancer screening market effectively [144] Other Important Information - The company has repurchased 10.5 million shares for $750 million year-to-date, indicating a commitment to returning value to shareholders [8][139] - The guidance for Q4 2024 includes total revenue expectations of $970 million to $985 million and EPS of $0.97 to $1.04 [95][96] Q&A Session Summary Question: Can you help us think through the underlying algorithm for EPS growth? - Management indicated that they aim for earnings growth to outpace revenue growth, targeting high single-digit to low double-digit growth [44][37] Question: What is the status of the Skeletal business and its impact on revenue? - Management acknowledged a temporary stop ship issue affecting the Skeletal business but expressed confidence in resolving it by early fiscal 2025 [54][60] Question: How is the company approaching capital deployment between M&A and share repurchases? - Management stated that they are in a strong position to pursue both M&A and share repurchases, emphasizing a disciplined approach to capital allocation [32][61] Question: What are the expectations for the Panther utilization and assay adoption? - Management reported steady adoption of the Panther system, with over 55% of new customers running two or more assays [66][81] Question: How does the company view the competitive landscape for the Skeletal market? - Management expressed confidence in the market position and noted that the current challenges are supplier-related rather than competitive [75][87]

The reported revenue compares to the Zacks Consensus Estimate of $1 billion, representing a surprise of +1.07%. The company delivered an EPS surprise of +3.92%, with the consensus EPS estimate being $1.02. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Revenue- GYN Surgical: $166.60 million versus $166.70 million estimated by four a ...

Hologic (HOLX) came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for nonrecurring items. Over the last four quarters, the company has surpassed consensus EPS estimates four times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earn ...

Hologic Announces Financial Results for Third Quarter of Fiscal 2024 "In our third quarter of fiscal 2024, Hologic returns to top-line reported growth and once again exceeded the high-end of our guidance for both the top and bottom-line," said Stephen P. MacMillan, the Company's Chairman, President and Chief Executive Officer. "Our strong fiscal quarter and year-to-date results continue to highlight the durable strength across our broad portfolio, with our Diagnostics (ex-COVID), Breast Health, and Surgical ...

Hologic, Inc. (HOLX) announced that it has completed the previously announced acquisition of Endomagnetics Limited (Endomag), a UK-based developer of breast cancer surgery technologies, for approximately $310 million. This strategic move aims to bolster Hologic's breast surgery portfolio, offering surgeons and radiologists an expanded range of innovative solutions for breast cancer procedures. The acquisition reflects Hologic's commitment to advancing women's health and improving patient outcomes through cu ...

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. Given this perspective, it's time to examine the average forecasts of specific Hologic metrics that are routinely monitored and predicted by Wall Street analysts. Analysts' assessment points toward 'Revenue- GYN Surgical' reaching $166.70 million. The estimate points to a chan ...