The 10-second takeaway
For the quarter ended Sep. 29 (Q4), Hologic beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share shrank to a loss.
Margins shrank across the board.
Hologic reported revenue of $588.5 million. The 13 analysts polled by S&P Capital IQ expected revenue of $581.1 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $467.0 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 $0.37. The 17 earnings estimates compiled by S&P Capital IQ anticipated $0.36 per share. GAAP EPS were -$0.29 for Q4 versus $0.10 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 57.8%, 820 basis points worse than the prior-year quarter. Operating margin was 4.0%, 1,450 basis points worse than the prior-year quarter. Net margin was -13.2%, 1,910 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $661.0 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $2.68 billion. The average EPS estimate is $1.65.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 685 members out of 705 rating the stock outperform, and 20 members rating it underperform. Among 183 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 177 give Hologic a green thumbs-up, and six 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 $23.68.
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