Hologic posted a mixed third-quarter fiscal 2014 with adjusted EPS
of $0.37, down 2.6% year over year, but above the Zacks Consensus
Estimate by $0.03. Revenues of $632.6 million increased 1% and
outpaced the Zacks Consensus Estimate of $621 million. The top line
also steered past the company's guided range. Amid looming
headwinds such as lower sales of legacy products, a challenging
capital spending environment, European uncertainty and increasing
pricing pressure, Hologic's top line was boosted by strong
performance in the 3D tomosynthesis, surgical business and MyoSure
product lines. Currently, management's primary goal is to sustain
top- and bottom-line organic growth going ahead. Hologic is also
working on the divesture of some of its smaller businesses to focus
on the more profitable ones. However, growing operating expenses
remain major cause of concern. Accordingly, we reiterate the stock
Headquartered in Bedford, MA, Hologic Inc. develops,
manufactures, and supplies diagnostics, medical imaging systems and
surgical products which cater to the healthcare needs of women. The
company is focused on mammography systems for breast examination
and osteoporosis assessment. The company also provides a
comprehensive suite of technologies with products for mammography
and breast biopsy, radiation treatment for early-stage breast
cancer, cervical cancer screening, and treatment for menorrhagia,
osteoporosis assessment, preterm birth risk assessment, and mini
C-arm for extremity imaging.
In Aug 2012, Hologic acquired Gen-Probe, based in San Diego,
California, is a leader in molecular diagnostics products and
services that are used primarily to diagnose human diseases and
screen donated human blood. Gen-Probe's results of operations are
reported within Hologic s Diagnostics segment from the date of
acquisition. The acquisition has helped Hologic derive the lion s
share of its revenues from the diagnostics business and gain access
to Gen-Probe's molecular diagnostic platforms of TIGRIS and PANTHER
Subsequent to the Gen-Probe deal, Diagnostics went on to become
the largest segment at Hologic (representing 46.3% of the total
sales in the third quarter of 2014). Hologic operates through the
following four segments:
Diagnostics: With the Gen-Probe acquisition, Hologic currently
offers APTIMA family of assays that includes the APTIMA Combo 2
assay, which feature the APTIMA CT and APTIMA GC assays for the
detection of Chlamydia and gonorrhea, respectively, the APTIMA HPV
assay for the detection of 14 sub-types of high-risk HPV associated
with cervical cancer, and the APTIMA Trichomonas assay for the
detection of Trichomonas vaginalis. The instrumentation also
includes the TIGRIS system and the PANTHER instrument system used
to run a number of infectious disease and blood screening
Other products include the ThinPrep system, primarily used in
cytology applications. The current molecular diagnostic offerings
include Cervista HPV high risk (HR) and Cervista HPV 16/18 products
to assist in the diagnosis of human papillomavirus (HPV), as well
as other products to diagnose cystic fibrosis, cardiovascular risk
and other diseases.
Breast Health: Products include a broad portfolio of breast
imaging and related products and accessories, including digital and
film-based mammography systems, computer-aided detection (CAD),
breast biopsy guidance systems, minimally invasive breast biopsy
and tissue extraction devices and breast brachytherapy products.
The advanced breast imaging platform utilizes tomosynthesis
technology to produce both three-dimensional (3D) and two
dimensional (2D) full field digital mammography images.
GYN Surgical: Products include the NovaSure endometrial ablation
system and the MyoSure hysteroscopic tissue removal system.
NovaSure system is a minimally invasive procedure for the treatment
of heavy menstrual bleeding while MyoSure is a tissue removal
device to provide incision less removal of fibroids and polyps
within the uterus.
Skeletal Health: This segment includes dual-energy X-ray bone
densitometry systems, an ultrasound-based osteoporosis assessment
product, and Fluoroscan mini C-arm imaging products.
Hologic, Inc. (HOLX): Read the Full Research
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