Hologic Faces Challenges Despite Strong Financial Results
Stock Decline Raises Concerns as Company Adjusts Revenue Guidance
Marlborough, Massachusetts-based Hologic, Inc. (HOLX) specializes in developing and providing diagnostic products, imaging systems, and surgical products aimed at women’s health. With a market cap of $14.5 billion, Hologic operates in various segments including Diagnostics, Breast Health, GYN Surgical, and Skeletal Health.
Over the past year, Hologic’s performance has been lackluster compared to the broader market. HOLX stock has decreased by 14.2% over the last 52 weeks and is down 11.9% year-to-date (YTD). In contrast, the S&P 500 Index ($SPX) has seen gains of 20.5% in the same period, along with 2.9% returns in 2025.
Moreover, when compared to the iShares U.S. Medical Devices ETF (IHI), which experienced 12.4% gains over the past year and 9.4% YTD returns, Hologic’s performance appears disappointing.
Despite reporting better-than-expected financial results for its first quarter on February 5, Hologic’s stock dropped 10.1% following the announcement. The company’s revenue for the quarter reached $1.02 billion, a slight increase of 86 basis points from the previous year, aligning with analyst expectations. Hologic’s non-GAAP earnings per share (EPS) came in at $1.03, at the upper end of its guidance and exceeding consensus estimates by 98 basis points.
However, the company faced currency headwinds and weaknesses in breast health capital sales. In response, Hologic adjusted its full-year revenue guidance range down to $4.05 billion – $4.10 billion, a reduction from the prior estimate of $4.15 billion – $4.20 billion. This move negatively impacted investor confidence.
Looking forward to fiscal 2025, which concludes in September, analysts project HOLX will report a 4.9% year-over-year increase in earnings, estimating EPS at $4.28. Hologic’s earnings history is mixed; while the company has met or exceeded bottom-line estimates in three of the last four quarters, it has missed estimates on one occasion.
Among 18 analysts monitoring HOLX, the consensus rating is a “Moderate Buy.” This is based on six “Strong Buy” recommendations, one “Moderate Buy,” and 11 “Hold” ratings.
This outlook is slightly less optimistic than a month ago when seven analysts assigned “Strong Buy” ratings and two provided “Moderate Buy” suggestions. On February 6, Raymond James analyst Andrew Cooper maintained an “Outperform” rating but lowered the price target to $90.
Currently, HOLX’s average price target stands at $84.25, indicating a 32.6% upside potential from current prices. The highest street target of $95 suggests an impressive upside of 49.5%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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