The 10-second takeaway
For the quarter ended March 24 (Q2), Hologic met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank to a loss.
Margins contracted across the board.
Hologic reported revenue of $471.2 million. The 20 analysts polled by S&P Capital IQ foresaw revenue of $473.8 million on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $438.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS were -$0.15 for Q2 against $0.31 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.4%, 310 basis points worse than the prior-year quarter. Operating margin was 12.5%, 260 basis points worse than the prior-year quarter. Net margin was -8.5%, 2,730 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $482.3 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $1.92 billion. The average EPS estimate is $1.38.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 692 members out of 712 rating the stock outperform, and 20 members rating it underperform. Among 196 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 191 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 $23.05.
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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.