Hologic Earnings: Here’s Why Investors are Selling Shares Now

Hologic Inc. (NASDAQ:HOLX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2%.

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Hologic Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.06% to $0.35 in the quarter versus EPS of $0.33 in the year-earlier quarter.

Revenue: Rose 31.4% to $619.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hologic Inc. reported adjusted EPS income of $0.35 per share. By that measure, the company beat the mean analyst estimate of $0.34. It missed the average revenue estimate of $639.44 million.

Quoting Management: “The fundamental long-term revenue growth drivers of our business remain strong,” said Rob Cascella, President and Chief Executive Officer. “Adoption of our 3D mammography is accelerating with a growing backlog of sales orders in our Breast Health business. The Gen-Probe acquisition has greatly strengthened our Diagnostics business, and we are seeing increasing numbers of Diagnostics account conversions and competitive wins.”

Key Stats (on next page)…

Revenue decreased 1.94% from $631.36 million in the previous quarter. EPS decreased 7.89% from $0.38 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.40 to a profit $0.41. For the current year, the average estimate is a profit of $1.58, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)