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With a market cap of $18.3 billion, Hologic, Inc. (HOLX) specializes in developing and supplying diagnostics, medical imaging systems, and surgical products focused on women's health. Based in Marlborough, Massachusetts, the company is expected to unveil its fiscal Q3 earnings results after the market closes on Monday, Jul. 29.
Prior to the event, analysts anticipate HOLX to report a profit of $1.02 per share, up 9.7% from $0.93 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarters. The company reported an EPS of $1.03 in the most recent quarter, exceeding the consensus EPS estimate by a 6.2% margin due to the non-covid segment’s solid growth.
For fiscal 2024, analysts expect HOLX to report EPS of $4.08, up 3% from $3.96 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow by 8.8% annually to $4.44.
On a YTD basis, HOLX's shares have risen 11.2%, lagging behind both the S&P 500 Index's ($SPX) 17.7% gain and the S&P 500 Healthcare Sector SPDR's (XLV) 10.3% increase over the same period.
Shares of HOLX fell 2.7% after its Q1 earnings result reported on Feb. 1 due to a revenue decline in its Diagnostics and Molecular Diagnostics segments, primarily from lower COVID-19 assay sales compared to the previous year. This overshadowed strong performance in other divisions and raised concerns about future growth and operational challenges. However, the stock recovered marginally following its Q2 earnings release on May 2. The company exceeded expectations with robust growth in its Diagnostics (ex-COVID) and Surgical segments, coupled with strong operational cash flow.
Analysts' consensus rating on Hologic stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 15 analysts covering the stock, opinions include seven "Strong Buys," two "Moderate Buys," and six "Holds." This configuration is more bullish than three months ago, with five analysts suggesting a "Strong Buy."
The average analyst price target for HOLX is $85.67, suggesting a modest potential upside of 9.2% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
