The 10-second takeaway
For the quarter ended Dec. 24 (Q1), Hologic beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share grew significantly.
Gross margins expanded, operating margins were steady, net margins increased.
Hologic logged revenue of $472.7 million. The 21 analysts polled by S&P Capital IQ predicted sales of $466.4 million. Sales were 9.3% higher than the prior-year quarter's $432.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.34. The 24 earnings estimates compiled by S&P Capital IQ averaged $0.32 per share on the same basis. GAAP EPS of $0.8 for Q1 were 100% higher than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 62.5%, 50 basis points better than the prior-year quarter. Operating margin was 17.4%, about the same as the prior-year quarter. Net margin was 4.4%, 190 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $470.8 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $1.91 billion. The average EPS estimate is $1.36.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 697 members out of 717 rating the stock outperform, and 20 members rating it underperform. Among 213 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 208 give Hologic a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hologic is outperform, with an average price target of $21.45.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.