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Analysts’ Recommendations for Hologic and Its Peers in August

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Financial performance in Q3 2018

In the fiscal third quarter of 2018,[1. fiscal Q3 2018 ended June 30] Hologic (HOLX) reported revenues of ~$824.0 million for a YoY (year-over-year) increase of ~2.2%. While the company benefited from a weaker dollar, the positive impact was lower than what it previously projected. In the fiscal third quarter, Hologic reported non-GAAP EPS of ~$0.58, which was a YoY rise of 16.0%.

Hologic surpassed its revenue and EPS guidance for the fiscal third quarter. Its Breast Health segment was one of the key growth drivers for the company in its US and international markets.

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Hologic’s Diagnostics business posted a recovery compared to the fiscal second quarter, and its Surgical business has posted gradual improvement since the fiscal first quarter. Although its Cynosure business reported a YoY revenue decline in the fiscal third quarter, it reported revenue improvement on a sequential basis.

In the US market, Hologic (HOLX) reported sales of ~$616.8 million in the fiscal third quarter, which was a YoY decline of 0.3%. However, the company reported a gradual improvement in the revenue performance of its legacy businesses—Diagnostics, Breast Health, and Surgical.

Analysts’ recommendations for Hologic

Of the 19 analysts covering Hologic (HOLX) in August, five gave it “strong buy” ratings, seven gave it “buy” ratings, and seven gave it “hold” ratings. Wall Street analysts have projected a consensus target price for Hologic of $45.80, a rise of ~10.6% over the company’s closing price on August 1.

Analysts’ recommendations for Hologic’s peers

Of the 19 analysts covering Abbott Laboratories (ABT) in August, ~78.9% recommended the company as a “buy.” About 72.2% of the 18 analysts covering Becton Dickinson (BDX) recommend a “buy,” and 64.3% of the 28 analysts tracking Stryker (SYK) recommended a “buy.”

In the next article, we’ll discuss the revenue growth prospects for Hologic in fiscal 2018.

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