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Hologic, Inc. HOLX reported adjusted earnings per share (EPS) of $1.03 in the second quarter of fiscal 2025, in line with the year-ago quarter’s figure. The metric surpassed the Zacks Consensus Estimate by 0.9%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
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 loss per share was 8 cents in the quarter, compared with 72 cents EPS in second-quarter fiscal 2024.
Revenues totaled $1.01 billion in the quarter, down 1.2% year over year (down 0.5% at the constant exchange rate or CER). Meanwhile, the top line surpassed the Zacks Consensus Estimate by 0.3%.
Following the earnings announcement, HOLX shares dropped 1.8% in yesterday’s after-hours session.
In the fiscal second quarter, U.S. revenues fell 1.9% year over year to $744.9 million. This missed our model’s projection of $749.5 million.
International revenues amounted to $260.4 million, up 0.8% year over year (3.5% at CER). Our model’s projection was $252.3 million.
Revenues in the segment increased 0.8% year over year (up 1.5% at CER) to $453.6 million in the quarter under review. Excluding COVID-19 revenues, Diagnostics revenues increased 4.5% on a reported basis. This compares with our model’s segmental projection of $452.2 million.
Within the division, Cytology & Perinatal revenues of $118.5 million dropped 0.6% at CER. This compares with our model’s segmental projection of $121.2 million.
Hologic, Inc. price-consensus-eps-surprise-chart | Hologic, Inc. Quote
Molecular Diagnostics revenues of $326 million increased 1.7% at CER, in line with our model’s projection.
Blood Screening revenues of $9.1 million fell 31.9% year over year at CER. Our model forecast for the business was $5 million.
The segment’s revenues decreased 7.4% from the year-ago period (down 6.9% at CER) to $356.2 million due to the lower sales of mammography capital equipment. Our model projected revenues of $370.6 million for this segment.
Excluding the divested SSI and acquired Endomagnetics businesses, Breast Health revenues decreased 9.7% or 9.2% year over year at constant currency.
Surgical revenues grew 4.2% year over year (5.1% at CER) to $162.5 million. Our model projected revenues of $160.7 million in this segment.
Revenues declined 21.8% year over year (down 22.9% at CER) to $33 million. Our model projected revenues of $18.2 million for this segment.
In the fiscal second quarter, the company-provided adjusted gross margin increased 40 basis points (bps) to 61.1%, mainly due to the accretive impact to gross margin from the inclusion of Endomagnetics and Gynesonics results.
The company’s adjusted operating margin was 30%, a contraction of 40 bps, due to expected margin dilution from the inclusion of Endomagnetics and Gynesonics results.
Hologic ended the second quarter of fiscal 2025 with cash and cash equivalents of $1.43 billion compared with $1.78 billion at the end of the first quarter.
Total long-term debt (including the current portion) was $2.52 billion compared with $2.53 billion at the first quarter-end.
Net cash provided by operating activities at the end of the fiscal second quarter was $358.7 million compared with $512.4 million a year ago.
For the full fiscal 2025, the company reiterated its revenue outlook of $4.05-$4.10 billion, representing a year-over-year increase of 0.5%-1.7%. 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 $4.15-$4.25 (earlier $4.25-$4.35). The updated projections indicate 1.7%-4.2% (earlier 4.2%-6.6%) growth year over year. The Zacks Consensus Estimate for the same is pegged at $4.27 per share.
For the third quarter of fiscal 2025, the company forecasts revenues between $1 billion and $1.01 billion, suggesting a year-over-year decrease of 1.1%-0.1% on a reported basis. The Zacks Consensus Estimate for the metric is pegged at $1.03 billion.
Adjusted EPS is estimated between $1.04 and $1.07, which implies a 1.9% decrease to 0.9% growth year over year. The Zacks Consensus Estimate for the metric currently stands at $1.10.
Hologic delivered earnings and revenue beat in the second quarter of fiscal 2025. Meanwhile, revenues were down on a year-over-year basis. The company’s performance has been impacted by the challenging environment marked by unpredictable economic and policy scenarios. As anticipated, a slowdown in gantry placements weighed on the Breast Health segment. Hologic lowered its bottom-line expectations for the full fiscal 2025, citing tariff pressures and geopolitical conditions.
Meanwhile, Diagnostics revenues benefited from the consistent strength in the company’s BV/CV/TV assay and Biotheranostics business, along with higher sales of respiratory assays. Robust Breast Health recurring service revenues were a key highlight in the second quarter, supported by a global installed base of approximately 15,000 3D gantries worldwide. Surgical’s International business delivered another solid quarter. Additionally, an accelerated recovery of product supply in the Skeletal business boosted Hologic’s top line.
Hologic currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Integer Holdings Corporation ITGR and Boston Scientific BSX.
AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 70.9%.
Integer Holdings, sporting a Zacks Rank #1 at present, posted a first-quarter 2025 adjusted EPS of $1.31, exceeding the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%.
ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry’s 14.3% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 2.8%.
Boston Scientific, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion topped the Zacks Consensus Estimate by 2.3%.
BSX has an estimated 2025 earnings growth rate of 15.9% compared with the S&P 500 composite’s 11.9% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.8%.
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This article originally published on Zacks Investment Research (zacks.com).
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