Medical technology company Hologic (HOLX.O) reported a stronger-than-expected profit for the third quarter on Monday, buoyed by high demand for its diagnostics and breast health products. However, its revenue forecast for the current quarter fell short of Wall Street expectations, leading to a nearly 6% drop in its stock price during after-hours trading.
Hologic projected fourth-quarter revenue between $970 million and $985 million. Analysts had anticipated around $1 billion in revenue.
Based in Marlborough, Massachusetts, Hologic specializes in viral load tests, molecular diagnostics assays, medical imaging systems, and surgical products for women’s health. The company slightly increased its lower-end forecasts for adjusted profit per share and revenue for fiscal year 2024.
RBC Capital Markets analyst Conor McNamara noted, “Guidance was raised at the low end, but the midpoint of the revenue forecast came down slightly. This appears to be due to a stop-ship order on a skeletal health product.”
Hologic’s diagnostics segment, its largest by revenue, saw third-quarter sales rise to $440.8 million, surpassing analysts’ expectations of $430.3 million. The breast health segment, which includes radiology and breast surgery products, recorded a 6.9% increase in sales to $385 million, exceeding estimates of $377.12 million.
On an adjusted basis, Hologic reported earnings of $1.06 per share, outperforming the forecasted $1.02 per share.
