Latest news with #HOLX
Yahoo
29-05-2025
- Business
- Yahoo
Why Hologic, Inc. (HOLX) Went Up On Tuesday
We recently published a list of . In this article, we are going to take a look at where Hologic, Inc. (NASDAQ:HOLX) stands against other best-performing stocks. Hologic ended a three-day losing streak on Tuesday, jumping 14.54 percent to finish at $62.17 apiece following news that it is being targeted for acquisition for $16 billion. A report by Financial Times on Tuesday said that private equity firms TPG and Blackstone made an approach to acquire Hologic, Inc. (NASDAQ:HOLX). However, the latter was said to have rejected the non-binding offer. If talks resume, the proposed deal would value Hologic, Inc. (NASDAQ:HOLX) between $70 and $72, a significant premium to its $62.17 closing price on Tuesday. In the second quarter of fiscal year 2025, Hologic, Inc. (NASDAQ:HOLX) swung to a net loss of $17.4 million from a $169.9 million net income in the same period last year. A doctor using a medical imaging system to diagnose a patient at a hospital. Revenues dipped by 1 percent to $1.005 billion from $1.017 billion year-on-year. In the six-month period alone, net income dropped by 56 percent to $183.6 million from $416.4 million, while revenues ended flat at $2.03 billion. Overall, HOLX ranks 6th on our list of best-performing stocks. While we acknowledge the potential of HOLX, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HOLX and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
Why Hologic, Inc. (HOLX) Went Up On Tuesday
We recently published a list of . In this article, we are going to take a look at where Hologic, Inc. (NASDAQ:HOLX) stands against other best-performing stocks. Hologic ended a three-day losing streak on Tuesday, jumping 14.54 percent to finish at $62.17 apiece following news that it is being targeted for acquisition for $16 billion. A report by Financial Times on Tuesday said that private equity firms TPG and Blackstone made an approach to acquire Hologic, Inc. (NASDAQ:HOLX). However, the latter was said to have rejected the non-binding offer. If talks resume, the proposed deal would value Hologic, Inc. (NASDAQ:HOLX) between $70 and $72, a significant premium to its $62.17 closing price on Tuesday. In the second quarter of fiscal year 2025, Hologic, Inc. (NASDAQ:HOLX) swung to a net loss of $17.4 million from a $169.9 million net income in the same period last year. A doctor using a medical imaging system to diagnose a patient at a hospital. Revenues dipped by 1 percent to $1.005 billion from $1.017 billion year-on-year. In the six-month period alone, net income dropped by 56 percent to $183.6 million from $416.4 million, while revenues ended flat at $2.03 billion. Overall, HOLX ranks 6th on our list of best-performing stocks. While we acknowledge the potential of HOLX, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HOLX and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
HOLX Q1 Earnings Call: Tariffs, Market Headwinds, and Portfolio Diversification Shape 2025 Outlook
Medical technology company Hologic (NASDAQ:HOLX) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 1.2% year on year to $1.01 billion. The company expects next quarter's revenue to be around $1.01 billion, close to analysts' estimates. Its non-GAAP profit of $1.03 per share was 1.4% above analysts' consensus estimates. Is now the time to buy HOLX? Find out in our full research report (it's free). Revenue: $1.01 billion vs analyst estimates of $1 billion (1.2% year-on-year decline, in line) Adjusted EPS: $1.03 vs analyst estimates of $1.02 (1.4% beat) Adjusted EBITDA: $325.8 million vs analyst estimates of $324.9 million (32.4% margin, in line) The company reconfirmed its revenue guidance for the full year of $4.08 billion at the midpoint Management lowered its full-year Adjusted EPS guidance to $4.20 at the midpoint, a 2.3% decrease Operating Margin: -0.7%, down from 20.7% in the same quarter last year Free Cash Flow Margin: 12.9%, down from 26% in the same quarter last year Constant Currency Revenue was flat year on year, in line with the same quarter last year Market Capitalization: $12.34 billion Hologic's first quarter results for 2025 were shaped by steady performance in its core diagnostics business and a rebound in its skeletal health segment. Management attributed revenue trends to ongoing strength in molecular diagnostics—particularly the BV/CV/TV assay—and improved supply for its DEXA systems, while also acknowledging headwinds from reduced HIV testing in Africa and lower capital equipment demand in breast health. CEO Steve MacMillan pointed to elevated recurring service revenue and the positive impact of recent acquisitions, such as Endomagnetics and Gynesonics, as supporting overall stability. Looking ahead, management's guidance reflects cautious expectations due to newly imposed tariffs, persistent geopolitical uncertainty in China, and funding cuts in Africa. CFO Karleen Oberton explained that these factors directly influenced the reduction in full-year adjusted EPS guidance, while revenue guidance was maintained at the midpoint due to partial offsets from currency effects. The company's focus remains on mitigating tariff-related costs, driving commercial execution in breast health, and leveraging a diversified product portfolio to support future growth. Hologic's management emphasized several operational and market dynamics that shaped Q1 results and the company's outlook for the remainder of 2025. • Diagnostics growth and headwinds: The diagnostics division saw continued expansion in molecular diagnostics, with the BV/CV/TV assay and Biotheranostics oncology products noted as major contributors. However, these gains were partially offset by weaker HIV testing volumes in Africa due to funding cuts, and by ongoing softness in China tied to geopolitical challenges. • Breast health restructuring: Leadership highlighted a reorganization of the breast health sales force, splitting capital and disposable sales responsibilities to sharpen commercial focus. The company also launched an end-of-life replacement strategy for older gantry systems, aiming to drive upgrades and recurring service revenue. Direct sales of Endomagnetics products in North America were cited as a key initiative. • Surgical and skeletal recovery: The surgical division posted modest organic growth, supported by international expansion and the integration of Gynesonics. Skeletal health rebounded as DEXA system supply constraints eased, though management cautioned that this catch-up effect is unlikely to repeat in upcoming quarters. • Tariff exposure and mitigation: Management outlined exposure to new U.S. tariffs on products manufactured in Costa Rica and China, estimating a quarterly gross headwind of $20–$25 million. The company is pursuing mitigation efforts but expects limited pricing flexibility in the near term due to long-term contracts. Most manufacturing for diagnostics and breast health remains U.S.-based, limiting broader exposure. • Cash flow and capital allocation: Hologic generated $169.5 million in operating cash for the quarter and closed the Gynesonics acquisition. The company continues to prioritize tuck-in acquisitions and share repurchases, underpinned by a strong balance sheet and low leverage. Management's outlook for the rest of 2025 centers on tariff impacts, international market uncertainty, and targeted commercial execution across core businesses. • Tariff-related cost pressures: Newly imposed tariffs on products from Costa Rica and China will increase cost of goods sold, especially in the second half of the year. Management expects this to weigh on margins, with only partial offsets from cost mitigation efforts. • Geopolitical and funding headwinds: Lower revenue from China and reduced HIV testing in Africa are expected to persist, reflecting geopolitical challenges and shifts in global health funding. Management has largely derisked these markets in its forecasts but notes the potential for further volatility. • Breast health commercial initiatives: The company's strategic focus on gantry system upgrades, expansion of the service revenue base, and direct selling of Endomagnetics products is intended to support a return to growth in breast health by the fourth quarter. Management believes these initiatives will be key to offsetting market headwinds and driving long-term performance. • Patrick Donnelly (Citi): Asked about potential supplier price increases tied to tariffs and how mitigation strategies could affect costs. Management responded that supplier discussions are ongoing but do not expect dramatic impacts, with the main focus on offsetting Costa Rica-related tariffs. • Tejas Savant (Morgan Stanley): Probed the precise drivers behind the lowered organic revenue outlook, beyond tariffs and China. CFO Karleen Oberton clarified that increased weakness in Africa and slight adjustments to China revenue were primary factors. • Jack Meehan (Nephron Research): Sought details on China revenue declines by segment. CEO Steve MacMillan indicated the majority of the reduction comes from diagnostics, with the decision made to further derisk Chinese exposure. • Puneet Souda (Leerink Partners): Asked about supply chain flexibility amid tariffs and the capital spending outlook for hospitals ahead of new gantry launches. Management stated they are satisfied with existing U.S. and Costa Rica manufacturing and expect hospitals to maintain purchasing due to the value proposition of new products. • Casey Woodring (J.P. Morgan): Inquired about the drivers of 12% service revenue growth and future expectations. Management cited strong execution in service contracts, higher attach rates, and Biotheranostics contributions, with growth largely in line with internal forecasts. In the coming quarters, the StockStory team will monitor (1) the effectiveness of Hologic's mitigation strategies for tariff-related cost increases, (2) commercial execution in breast health—including uptake of gantry upgrades and direct sales of Endomagnetics products, and (3) stabilization of international markets, especially regarding funding trends in Africa and demand in China. Updates on new product launches and integration of recent acquisitions will be critical to evaluating progress toward management's growth targets. Hologic currently trades at a forward P/E ratio of 12.5×. Should you load up, cash out, or stay put? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
1 of Wall Street's Favorite Stock with Impressive Fundamentals and 2 to Think Twice About
The stocks in this article have caught Wall Street's attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory. Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here is one stock likely to meet or exceed Wall Street's lofty expectations and two where its enthusiasm might be excessive. Consensus Price Target: $68.56 (30% implied return) As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ:HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness. Why Does HOLX Fall Short? Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn't resonate with customers Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 23.2 percentage points Waning returns on capital imply its previous profit engines are losing steam Hologic is trading at $52.73 per share, or 11.9x forward P/E. To fully understand why you should be careful with HOLX, check out our full research report (it's free). Consensus Price Target: $25.32 (20.6% implied return) Founded in 1974, BrightSpring Health Services (NASDAQ:BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services. Why Does BTSG Give Us Pause? Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 1 percentage points Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.9 percentage points Underwhelming 5.5% return on capital reflects management's difficulties in finding profitable growth opportunities At $21.00 per share, BrightSpring Health Services trades at 33.1x forward P/E. If you're considering BTSG for your portfolio, see our FREE research report to learn more. Consensus Price Target: $754.60 (20.1% implied return) Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption. Why Are We Bullish on MPWR? Annual revenue growth of 13.1% over the last two years was superb and indicates its market share increased during this cycle Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends ROIC punches in at 45.7%, illustrating management's expertise in identifying profitable investments Monolithic Power Systems's stock price of $628.38 implies a valuation ratio of 36.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
