The 10-second takeaway
For the quarter ended March 30 (Q2), Hologic missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased. GAAP loss per share grew.
Gross margins dropped, operating margins shrank, net margins grew.
Hologic booked revenue of $612.7 million. The 20 analysts polled by S&P Capital IQ expected revenue of $639.8 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $471.2 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 $0.35. The 23 earnings estimates compiled by S&P Capital IQ anticipated $0.34 per share. Non-GAAP EPS of $0.35 for Q2 were 6.1% higher than the prior-year quarter's $0.33 per share. GAAP EPS were -$0.19 for Q2 versus -$0.15 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 58.0%, 320 basis points worse than the prior-year quarter. Operating margin was 7.9%, 870 basis points worse than the prior-year quarter. Net margin was -8.3%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $649.5 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $2.61 billion. The average EPS estimate is $1.58.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 671 members out of 692 rating the stock outperform, and 21 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 159 give Hologic a green thumbs-up, and eight 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 $25.24.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.