The 10-second takeaway
For the quarter ended Dec. 29 (Q1), Hologic missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Hologic recorded revenue of $631.4 million. The 19 analysts polled by S&P Capital IQ wanted to see revenue of $645.6 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $472.7 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 $0.38. The 22 earnings estimates compiled by S&P Capital IQ averaged $0.37 per share. GAAP EPS of $0.01 for Q1 were 88% lower than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.5%, 600 basis points worse than the prior-year quarter. Operating margin was 8.4%, 900 basis points worse than the prior-year quarter. Net margin was 0.5%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $649.9 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $2.63 billion. The average EPS estimate is $1.58.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 679 members out of 699 rating the stock outperform, and 20 members rating it underperform. Among 196 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 190 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 $23.82.
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