Why Hologic Inc. Shares Plunged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of medical imaging systems specialist Hologic  (NASDAQ: HOLX  ) sank 15% today after its quarterly results and outlook disappointed Wall Street.

So what: The stock has been volatile in 2013 on doubts over management's strategic direction, and today's fourth-quarter results -- loss of $1.1 billion on a revenue increase of just 6% -- coupled with downbeat guidance only reinforce that skepticism. While the loss was mainly due to a one-time impairment related to its diagnostics segment, results were also affected by continued shortfalls in its ThinPrep Pap test line, suggesting that management may have to sell some assets to reignite growth. 

Now what: Management now sees 2014 adjusted EPS of $1.32-1.38 on revenue of $2.425 billion-$2.475 billion, well below Wall Street's view of $1.64 and $2.59 billion, respectively.

"We expect fiscal 2014 to be a transitional year for the Company and we remain confident the changes we are making to enhance the organization, combined with improving trends across our portfolio of market-leading products, will drive stronger financial performance in fiscal 2015 and beyond," said President and CEO Jack Cumming.

More important, with Hologic shares now off about 20% from its 52-week highs and trading at a forward P/E around 10, Mr. Market might finally be offering a decent opportunity to buy into those long-term prospects.

A healthier way to wealth
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2723448, ~/Articles/ArticleHandler.aspx, 12/17/2014 6:09:39 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement