Medical technology company Hologic, Inc. (HOLX) has reported strong-than-expected results for the fiscal fourth quarter ended September 25, 2021. Following the earnings, shares of the company gained marginally to close at $73.10 in the extended trading session on Monday.
Hologic reported quarterly revenues of $1.32 billion, a de-growth of 2.3% from the prior year. However, the figure topped the consensus estimate of $1.04 billion. Revenues from the diagnostics segment (excluding blood) declined 11.8% from the previous year and were offset by a 15.6% year-over-year growth witnessed in the revenues from the breast health category.
The company reported quarterly earnings per share (EPS) of $1.61, which denoted a decline of 22.2% from the prior year. The figure, however, surpassed the consensus estimate of $1.
Meanwhile, the company also provided guidance for Fiscal 2022 and first quarter of 2022. In the first quarter of Fiscal 2022, the company expects to post earnings between $1.15 per share and $1.25 per share against the consensus estimate of $0.96 per share. Revenues for the same period are forecasted to be in the range of $1.1 billion to 1.15 billion against analysts’ expectations of $0.99 billion.
For Fiscal 2022, the company predicts EPS to be between $3.55 and $3.85 against the consensus estimate of $3.69. It expects to post revenues in the range of $3.75 billion to $4 billion against the consensus estimate of $3.87 billion.
The CEO of Hologic, Steve MacMillan, said, “In 2021, we lived into our Purpose, Passion and Promise by showcasing our team’s incredible ability to respond simultaneously to the world’s women’s health and COVID-19 testing needs, which drove annual revenue growth of 47% to more than $5.6 billion.” (See Hologic stock chart on TipRanks)
On November 1, BTIG analyst Ryan Zimmerman reiterated a Buy rating on the stock with a price target of $82, which implies upside potential of 12.8% from current levels.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 3 Buys and 2 Holds. The average Hologic price target of $84.33 implies that the stock has upside potential of 16% from current levels.
Hologic scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 3% over the past year.