Hologic (HOLX) Eyes Slight EPS Growth Despite Revenue Struggles

Hologic (HOLX) is projected to report a profit of $1.01 per share in Q1 2025, indicating a slight rise from previous figures. However, with recent revenue declines in key segments, investors should remain cautious about potential stock price volatility.

Date: 16-01-2025

AI Rating: 5

Overview of Hologic's Financial Estimates: Hologic, Inc. is expected to release its Q1 2025 earnings results on February 5, with analysts predicting a profit of $1.01 per share—a 3.1% increase from the prior year's $0.98. For fiscal 2025, EPS is anticipated to reach $4.28, reflecting a 4.9% growth year-over-year.

Earnings Per Share (EPS): The expectations of $1.01 EPS for the next quarter and $4.28 for fiscal 2025 suggests a slight upward trend, which can contribute positively to Hologic's stock price. However, the company has experienced mixed performance regarding earnings, with missed estimates in the recent quarter raising concerns.

Revenue Growth Concerns: The Skeletal Health segment has shown a significant revenue decline of 54.6%, coming in at $12.7 million versus the expected $28.4 million. This drastic underperformance may negatively impact investor sentiment, as it indicates challenges in a key revenue-generating sector.

Market Performance: Hologic's shares have underperformed relative to the S&P 500 Index, having dropped 4.6% over the past year compared to the index's 24.1% gain. Such underperformance could lead to increased scrutiny from investors regarding the company's future prospects.

Analyst Sentiment: While there is a cautiously optimistic view among analysts with a “Moderate Buy” rating, the missed EPS target and revenue shortfall might temper this outlook. Hologic's current trading below the average analyst price target limits the positive sentiment that could foster stock price appreciation.

Stocks: HOLX