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.
Is Hologic the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.
- Add Hologic to My Watchlist.