Medical imaging systems and surgical products maker, Hologic Inc. (HOLX), has announced preliminary revenue results for first quarter fiscal 2015. The company is slated to release its comprehensive financial results for the quarter on Jan 28. Hologic projects impressive performance in the fiscal first quarter and expects to surpass expectations on the revenue front.
In the to-be-reported quarter, Hologic expects total revenue to increase approximately 7% (up 8% at constant exchange rate or CER) on a year-over-year basis to $653 million, well ahead of the current Zacks Consensus Estimate of $633 million. This also exceeds the company's revenue guidance of $625–$635 million provided earlier. This solid top line is primarily expected on the back of balanced growth across all of Hologic’s segments.
While Diagnostics (46% of total revenue) is likely to increase 7% at CER, Breast Health (37.1%) is expected to grow 8% on a year-over-year basis. GYN Surgical (12.8%) and Skeletal Health (3.4%) are estimated to grow at 6% and 8% respectively, both at CER.
Apart from these preliminary numbers, Hologic also announced that, in Dec 2014, it voluntarily pre-paid $300 million of principal on its Term Loan B facility.
While reporting fourth quarter of fiscal 2014 financial results, Hologic had provided its business outlook for first quarter and fiscal 2015. In the first quarter, adjusted EPS is expected in the band of 35–36 cents (year-over-year growth of approximately 3% to 6%). The current Zacks Consensus Estimate for EPS is pegged at 36 cents.
For fiscal 2015, Hologic expects adjusted EPS in the range of $1.50 to $1.54, reflecting year-over-year growth of 3%–5.5%. The current Zacks Consensus Estimate for adjusted EPS is pegged at $1.52, which lies within the guidance.
For fiscal 2015, the company estimates revenue growth (excluding the impact of foreign currency) of approximately 2% to 3.5% over fiscal 2014. Including an expected 1% negative impact from foreign currency, Hologic expects reported growth of approximately 1% to 2.5%, resulting in reported revenues in the range of $2.54 billion to $2.57 billion. The current Zacks Consensus Estimate for revenues for fiscal 2015 is pegged at $2.56 billion, which lies within the company’s guided range.
Currently, Hologic has a Zacks Rank #3 (Hold). Some well-ranked stocks in the medical instruments industry are Edwards Lifesciences Corp. (EW), ABIOMED, Inc. (ABMD) and Cyberonics Inc. (CYBX). All the three stocks carry a Zacks Rank #2 (Buy).
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