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Hologic (HOLX) Q2 Earnings Might Rise on GYN Surgical Growth

Hologic, Inc. HOLX GYN Surgical is expected to have registered vital contributions from MyoSure and the Related fluid system, with an increasing contribution from its laparoscopic portfolio.

Moreover, Hologic’s Molecular Diagnostics business is likely to register strong growth driven by a combination of newer assays like BV and CV/TV.

We anticipate HOLX’s second-quarter fiscal 2024 performance, scheduled for release on May 2 after the closing bell, to reflect these aspects.

Click here to know how the company’s overall fiscal second-quarter performance is expected to be.

GYN Surgical

Hologic’s GYN Surgical is expected to have registered vital contributions from MyoSure and the related fluid system. The company is likely to have benefited from the strong performance of its latest NovaSure iteration, the NovaSure V5, in the fiscal second quarter.

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Further, we are also upbeat about the company’s laparoscopic portfolio, which continues to build momentum and is growing into a larger driver for the division. Through Acessa and Bolder acquisitions, the company integrated Acessa’s procedure and Bolder’s advanced vessel sealing portfolio into its product line. We believe this integration to have a positive contribution to the company’s top line in the to-be-reported quarter.

During the first quarter of 2024, Hologic partnered with the American Association of Gynecologic Laparoscopists (“AAGL”) and Inovus Medical. The partnership is helping Hologic elevate minimally invasive gynecologic surgical training and improve women’s healthcare by educating future obstetrician-gynecologists (OB-GYN) on newer treatment options for common gynecologic conditions.  We expect this collaboration to have made a positive contribution to Hologic’s revenues through the fiscal second quarter, banking on strong customer response on newer treatment options.

Hologic, Inc. Price and EPS Surprise

 

Hologic, Inc. Price and EPS Surprise
Hologic, Inc. Price and EPS Surprise

Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote

 

Going by our model, HOLX’s GYN Surgical business revenues are expected to increase by 7.8% year over year in the second quarter of 2024.

Diagnostics

Growing Panther instrument adoption and an expanded Panther installed base are expected to drive growth in Hologic's Diagnostics division (excluding COVID) in the second quarter of fiscal 2024.

Recent developments in assays like as BV, CV/TV and contributions from Amgen and HSV, along with the long-standing women's health menu, are expected to fuel significant growth in Hologic's Molecular Diagnostics business in the to-be-reported quarter.

We are also upbeat about Hologic’s recently launched FDA-approved Genius Digital Diagnostics System with the Genius Cervical AI algorithm. The launch marks the first and only FDA-cleared digital cytology system that combines deep-learning-based artificial intelligence (AI) with advanced volumetric imaging technology to help identify pre-cancerous lesions and cervical cancer cells. We believe this development to have a positive contribution to the company’s top line in the fiscal second quarter.

The company's Biotheranostics business has continuously delivered double-digit growth, being accretive even to its Molecular business. We believe these trends maintained in the fiscal second quarter, contributing to the top line.

Following the industry-wide trend, Hologic’s Diagnostics business is expected to decline globally compared with the prior year’s levels due to significantly lower COVID testing.

Going by our model, HOLX’s Diagnostics business revenues are likely to have declined 5% year over year in the second quarter of 2024.

What Our Model Suggests

Our proven model predicts an earnings beat for Hologic this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Hologic has an Earnings ESP of +0.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Hologic currently carries a Zacks Rank #3 (Hold).

Stocks Worth a Look

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter:

High Tide HITI has an Earnings ESP of +175.00% and a Zacks Rank #1. The company is expected to release second-quarter fiscal 2024 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.

High Tide has an expected earnings growth rate of 100% for the fiscal 2024. High Tide surpassed earnings in each of the trailing four quarters, the average being 91.67%.

ShockWave Medical SWAV has an Earnings ESP of +7.25% and a Zacks Rank #3. The company is due to release first-quarter 2024 results on May 13.

SWAV has an expected long-term earnings growth rate of 27.2%. ShockWave Medical surpassed earnings in three of the trailing four quarters and missed in one, the average beat being 13.55%.

Edwards Lifesciences EW currently has an Earnings ESP of +1.68% and a Zacks Rank #2. The company is scheduled to release its first-quarter 2024 results on Apr 25.

EW has a historical long-term earnings growth rate of 9.9%. In the trailing four quarters, Edwards Lifesciences delivered an average earnings surprise of 0.8%.

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Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report

Hologic, Inc. (HOLX) : Free Stock Analysis Report

ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report

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