GICS Sector : Healthcare
Hologic, Inc.develops, manufactures, and supplies diagnostics products, medical imaging systems, and surgical products for women's health through early detection and treatment in the United States, Europe, the Asia-Pacific, and internationally.It operates through four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health.
Hologic's third-quarter fiscal 2025 revenue came in at $1.024 billion, a 0.4% growth that exceeded guidance. Non-GAAP earnings per share reached $1.08, a 1.9% increase, and also surpassed guidance. The Diagnostics business grew nicely, with revenue of $448.9 million, up 0.9% or 2.9% organically excluding COVID-related sales. Molecular Diagnostics led the growth with a 2.4% increase globally and 7.3% in the US, driven by strong sales of BV, CV/TV assay, and Panther Fusion assays.
Publication Date: Jul -31
The Breast Health revenue declined 5.8% to $365.2 million, but grew sequentially and finished slightly ahead of internal expectations. Interventional sales increased 31.8%, driven by Endomagnetics, which contributed nearly $20 million in revenue. Surgical revenue grew 6.3% to $178.4 million, led by international growth of 24.8%. Skeletal Health revenue was $31.3 million, up 62.1%, as the company resumed shipping its DEXA model.
Non-GAAP gross margin was 60.3%, and operating margin was 30.1%. The company expects to return to solid mid-single-digit organic revenue growth next year and is optimistic about its future. Guidance for fiscal Q4 and the full year will be provided, with the company confident in its path and optimistic about its future. The company reported operating cash flow of $343 million and finished the quarter with $1.88 billion in cash and short-term investments.
With a P/E ratio of 26.9 and a P/S ratio of 4.94, the stock seems to be trading at a premium. However, with a strong track record of execution and a positive outlook, the stock may be worth the premium. Analysts estimate next year's revenue growth at 4.9%, which is in line with the company's guidance. The actual EPS of $1.08 relative to estimates of $1.05 is a positive surprise.
According to the company's management, "We feel good about the trends in Breast Health and expect it to be a strong driver in the next few years." The company expects diagnostics to grow within the mid-single-digit range in 2026, driven by the growth of molecular, BV, CV/TV, and Biotheranostics.
The company has made progress in mitigating tariff impacts and now expects to incur $10 million to $12 million in tariffs per quarter. The company continues to evaluate the situation and has levers in place to manage potential future impacts.
Edgestream Partners L.P. Has $1.92 Million Stock Holdings in Hologic, Inc. $HOLX
Dec -06
Hologic's BCI Test Shows Growing Impact in Endocrine Therapy Decisions
Dec -04
Arrowstreet Capital Limited Partnership Acquires 606,782 Shares of Hologic, Inc. $HOLX
Dec -03
New Data to be Presented at the 2025 SABCS Demonstrates Potential Expanded Utility of the Breast Cancer Index Test, the Leading Biomarker in Personalizing Endocrine Therapy Duration
Dec -02
HOLX vs. DGX: Which Healthcare Diagnostics Stock Is the Better Bet?
Nov -27
New Clinical Evidence Bolsters Hologic's Breast Cancer Technologies
Nov -26
New Clinical Evidence on Hologic's AI-Powered Mammography Solutions Will Be Unveiled at RSNA
Nov -25
Hologic's GYN Surgical Delivers a Standout Quarter: What's Behind It?
Nov -21
Hologic's diagnostics segment growth is driven by increasing demand for molecular diagnostics, women's health testing, and COVID-19 testing. Expanding product portfolios, strategic acquisitions, and partnerships also contribute to growth. Additionally, increasing adoption of digital and data analytics solutions, and growing need for early disease detection and prevention fuel segment growth.
Hologic's Breast Health segment growth of 6.2% is driven by increasing adoption of 3D mammography, growth in biopsy and breast surgery products, and expansion in international markets. Additionally, the company's investments in digital breast tomosynthesis and artificial intelligence are enhancing its product offerings, contributing to the segment's growth.
Hologic's GYN Surgical segment growth of 5.8% is driven by increasing adoption of minimally invasive procedures, rising demand for women's health services, and expanding market share of NovaSure and MyoSure products. Additionally, strategic partnerships and investments in emerging markets contribute to the segment's growth.
Hologic's Skeletal Health segment growth of 5.9% is driven by increasing adoption of its Horizon DXA systems, expansion in osteoporosis and fracture risk assessment markets, and growing demand for vertebral fracture assessment (VFA) and body composition analysis. Additionally, strategic partnerships and innovative product launches, such as the Omni™ and Apex™ DXA systems, contribute to the segment's growth momentum.
Hologic's 3D mammography systems use low-dose X-rays to produce high-resolution 3D images of the breast tissue, allowing for earlier detection and more accurate diagnosis of breast cancer.
Hologic's breast biopsy systems use advanced imaging technology to guide minimally invasive biopsies, allowing for accurate diagnosis and treatment of breast abnormalities.
Hologic's molecular diagnostics products use advanced DNA technology to detect and diagnose infectious diseases, including HPV, chlamydia, and gonorrhea.
Hologic's surgical instruments are designed for minimally invasive gynecologic and orthopedic procedures, including hysteroscopic and laparoscopic surgeries.
Hologic's MyoSure system is a minimally invasive procedure for removing intrauterine fibroids and polyps, allowing for quick recovery and minimal scarring.
Hologic's Aptima molecular diagnostics products use advanced DNA technology to detect and diagnose infectious diseases, including chlamydia, gonorrhea, and HPV.
Hologic, Inc. operates in the medical devices industry, which has a moderate threat of substitutes. While there are alternative medical devices available, they may not be as effective or efficient as Hologic's products.
Hologic, Inc. has a diverse customer base, including hospitals, clinics, and medical research institutions. However, the bargaining power of customers is relatively low due to the specialized nature of Hologic's products.
Hologic, Inc. relies on a network of suppliers for raw materials and components. While there are some alternative suppliers available, the bargaining power of suppliers is moderate due to the specialized nature of the components required.
The medical devices industry has high barriers to entry, including significant research and development costs, regulatory hurdles, and the need for specialized expertise. This makes it difficult for new entrants to enter the market.
The medical devices industry is highly competitive, with several established players competing for market share. Hologic, Inc. faces intense competition from companies such as Siemens Healthineers, GE Healthcare, and Philips Healthcare.
| Value | |
|---|---|
| Debt Weight | 35.97% |
| Debt Cost | 5.85% |
| Equity Weight | 64.03% |
| Equity Cost | 9.01% |
| WACC | 7.87% |
| Leverage | 56.17% |
Value: 2.6
Growth: 7.3
Quality: 6.5
Yield: 0.0
Momentum: 2.5
Volatility: 7.7
1-Year Total Return ->
Value: 2.9
Growth: 5.8
Quality: 7.1
Yield: 0.0
Momentum: 1.5
Volatility: 8.3
1-Year Total Return ->
Value: 5.1
Growth: 6.2
Quality: 6.0
Yield: 0.0
Momentum: 0.5
Volatility: 5.0
1-Year Total Return ->
Value: 4.7
Growth: 3.4
Quality: 5.4
Yield: 1.0
Momentum: 0.5
Volatility: 6.7
1-Year Total Return ->
Value: 0.2
Growth: 5.0
Quality: 3.9
Yield: 0.0
Momentum: 5.0
Volatility: 3.7
1-Year Total Return ->
Value: 2.9
Growth: 1.2
Quality: 5.9
Yield: 0.0
Momentum: 1.0
Volatility: 6.3
1-Year Total Return ->