Hologic estimates lowered at Needham following guidance

Published 19/12/2024, 12:46
Hologic estimates lowered at Needham following guidance

On Thursday, Needham reaffirmed its Buy rating and $90.00 price target for Hologic (NASDAQ:HOLX), a leading developer, manufacturer, and supplier of diagnostic products, medical imaging systems, and surgical products.

The firm's analysis is based on the company's expectations for its financial performance in the upcoming fiscal quarters.

Hologic's management anticipates that revenue and earnings per share (EPS) for the first and second quarters of fiscal year 2025 will remain similar. They expect the third and fourth quarters to also be similar, but higher.

This positive adjustment for the second half of fiscal year 2025 is attributed to the resolution of previous challenges. Specifically, the company foresees an improvement due to the mitigation of issues in its Skeletal Health division, the alleviation of intravenous (IV) solutions shortages, and a milder flu season than previously expected.

Additionally, the strong U.S. dollar will have a neutral effect, rather than serving as a tailwind for the company's revenue as previoulsy anticipated.

In light of the new information provided by the company's management, Needham has adjusted its expectations for Hologic's quarterly performance within fiscal year 2025. Consequently, the firm has also revised its revenue and EPS estimates for both fiscal years 2025 and 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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