- Hologic Inc HOLX posted second-quarter results that trailed the consensus forecast; however, the company tried to provide some cushion with a better third-quarter fueled by COVID-19 test revenue.
- Q2 adjusted EPS of $2.59 missed the consensus of $2.61, while sales of $1.54 billion were roughly in-line.
- Molecular diagnostics revenue of $935.3 million increased 390.6%, or 378.4% in constant currency, based on robust demand for its two SARS-CoV-2 assays that run on the fully automated Panther and Panther Fusion systems.
- “Hologic posted very strong financial results in our second fiscal quarter in line with our guidance,” said Steve MacMillan, the company’s CEO. “Organic revenue doubled, driven by strong recovery and momentum in our base businesses, as well as our continued response to the COVID-19 pandemic. And earnings per share more than quadrupled.”
- The company is upbeat about its business in months to come. “We forecast strong financial results in our third fiscal quarter, driven by continued strength and recovery in our base businesses, partially offset by a potentially conservative but still significant outlook for COVID test revenue given the rapidly evolving market dynamics,” explained Karleen Oberton, Hologic’s CFO.
- Guidance: Hologic anticipates revenue from $1 to $1.07 billion in the fiscal third quarter, which trails the consensus forecast. Analysts had expected $1.29 billion.
- It sees Q3 adjusted EPS of $1-$1.15, well below the analyst estimate of $1.83.
- SVB Leerink analyst Richard Newitter maintains Hologic with an Outperform rating for the stock but lowered the price target from $94 to $85.
- The company has been in M&A mode so far in 2021, picking up diagnostic developer Mobidiag for $795 million, Somatex for $64 million, and bioTheranostics for $230, and Diagenode for $159 million.
- Price Action: HOLX shares slipped 3.74% at $69.69 in the premarket on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
