Skip to main content

Market Overview

Strength Of Surgical Segment Helps Hologic To A Strong Q3

Share:
Strength Of Surgical Segment Helps Hologic To A Strong Q3

Barclays has maintained its Equal-Weight rating on Hologic, Inc. (NASDAQ: HOLX) shares despite strong third quarter results as it expects tough comps in the coming quarters.

Hologic delivered a better top line, driving a $0.04 beat relative to the Street. Overall revenues came in 2.4 percent better, with GYN Surgical again the most notable area of strength. Hologic's gross margin increased 50bps year-over-year to 65.7 percent.

"All in, we reiterate our Equal Weight rating as we balance opportunities across the portfolio against more challenging comps the next few quarters," analyst Jack Meehan wrote in a note.

Related Link: CVS Health Says Overdose Reversal Drug Is Now Available Without A Prescription In Texas

In addition, the analyst highlighted that despite tougher challenging comps, the U.S. mammography business continues to show momentum in placement rates, which remains a core tenant of a bull thesis on Hologic.

Moreover, the diagnostics business continues to see stable progress across most segments buoyed by the Panther system.

Of note, the analyst emphasized that Hologic showed margin leverage from better revenues and continued to accelerate sales and marketing expenditures as it continues to invest in the 3D mammography campaign and diagnostic marketing.

Further, the company repurchased $101 million of shares and authorized a new $500 million buyback.

"Now levered at 2.97x net debt to TTM EBITDA, the company certainly has more flexibility to begin re-deploying free cash flow back to shareholders," Meehan continued.

At the time of writing, shares of Hologic rose 2.37 percent to $38.08, while Meehan has target price of $42.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for HOLX

DateFirmActionFromTo
Apr 2021JefferiesMaintainsBuy
Feb 2021BairdMaintainsBuy
Dec 2020Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for HOLX
View the Latest Analyst Ratings

 

Related Articles (HOLX)

View Comments and Join the Discussion!

Posted-In: Analyst Color Biotech Earnings News Health Care Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
JBHTRaymond JamesMaintains185.0
TXRHWedbushMaintains110.0
HOMBRaymond JamesMaintains30.0
MCDWedbushMaintains255.0
INECredit SuisseUpgrades30.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com