HOLX to Discontinue Fluoroscan InSight FD Soon: Will the Stock Suffer?

Hologic’s HOLX Skeletal Health division has been driving positive contributions ever since the earlier supply challenges began to ease. Sales jumped 62.1% in the third quarter of fiscal 2025, driven by an accelerated production ramp-up of Horizon DXA systems. Earlier this year, the company announced the end-of-sale and end-of-life for the Fluoroscan Insight FD mini C-arm, effective Sept. 30, 2025. Launched in 2018, the product was designed to assist in performing minimally invasive orthopedic surgical procedures on a patient's extremities, such as the hand, wrist, knee, foot and ankle.

The decision to discontinue the product was a strategic one, based on its low gross margin, limited growth potential and fit within the company’s overall portfolio. Hologic expects Fluoroscan to generate about $18 million in product and service revenues in fiscal 2025 before it stops selling the product next year.

Hologic has tightened its 2025 revenue range to $4.081-$4.091 billion, supported by a strong third-quarter performance and reduced tariff headwinds. Within this, the Diagnostics business is expected to continue benefiting from the strength in underlying growth drivers, including the BV, CV/TV molecular diagnostic assay. Breast Health is rebounding and may deliver modest top-line growth in the fourth quarter. Surgical revenues are likely to be the strongest in the final quarter, thanks to an easier year-over-year comparison and better commercial execution. Management also anticipates outsized fourth-quarter growth in Skeletal Health, as it competes against a full quarter of the DXA stop-ship in the prior-year period.

The discontinuation of Fluoroscan is not expected to have a significant impact on growth. However, in 2026, Skeletal revenues will be less than in recent quarters, reflecting the fulfillment of the pent-up demand and the phase-out of the Fluoroscan product.

Updates From Hologic’s Rivals

GE Healthcare GEHC has announced the latest addition to its women’s health ultrasound portfolio, the Voluson Performance series. The new Voluson Performance 18 and 16 is designed to deliver detailed imaging and simplify workflow with artificial intelligence (AI) and automation tools. Further, GEHC’s anticipated acquisition of icometrix aligns with its precision care strategy, with the goal of strengthening the company’s portfolio of offerings in neurological care and its quantitative analysis of brain MRI.

Becton, Dickinson & Company BDX, or BD, announced a pharmacy automation partnership with Henry Ford Health to develop the health system pharmacy of the future. The initial focus will be on a robotic solution that will enable patients to pick up select prescriptions at their convenience. BD also placed the 1,000th BD Rhapsody System, its flagship instrument for single-cell multiomics analysis, at Addenbrooke's Hospital of the University of Cambridge, UK. 

HOLX Stock Performance, Valuation and Estimates

In the past six months, Hologic shares have risen 11.2% against the industry’s 9.4% decline. 

Hologic is trading at a forward 12-month price-to-earnings of 15.10X, lower than the industry’s 27.17X.

Analyst estimates for Hologic’s fiscal 2025 and 2026 earnings are showing a mixed trend.

HOLX stock currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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