Why Is Hologic (HOLX) Down 4.5% Since Last Earnings Report?

Core Viewpoint - Hologic reported a mixed performance in its Q1 fiscal 2025 earnings, with adjusted earnings per share surpassing estimates, but revenues showing modest growth and a downward revision in full-year guidance [2][3][13]. Financial Performance - Adjusted earnings per share for Q1 fiscal 2025 were $1.03, reflecting a 5.1% year-over-year increase and exceeding the Zacks Consensus Estimate by 0.9% [2]. - Total revenues reached $1.02 billion, marking a 0.9% year-over-year increase, consistent with the Zacks Consensus Estimate [3]. - U.S. revenues were $757.9 million, up 0.6% year over year, while international revenues totaled $263.9 million, up 1.7% year over year [4]. Segment Performance - Diagnostics segment revenues increased 5.1% year over year to $470.6 million, with a notable 9% increase excluding COVID-19 revenues [5]. - Breast Health segment revenues decreased 2.3% year over year to $369.1 million, attributed to lower sales of mammography capital equipment [7]. - GYN Surgical segment reported a 2.5% year-over-year increase in revenues to $166.3 million [8]. - Skeletal Health segment revenues declined 37.8% year over year to $15.8 million [10]. Operational Metrics - Adjusted gross margin improved by 80 basis points to 61.6%, while adjusted operating margin expanded by 90 basis points to 29.4% [11]. Financial Position - Cash and cash equivalents at the end of Q1 were $1.78 billion, down from $2.16 billion at the end of Q4 fiscal 2024 [12]. - Total long-term debt increased slightly to $2.53 billion from $2.50 billion [12]. Guidance and Outlook - For fiscal 2025, Hologic revised revenue guidance to $4.05-$4.10 billion, down from the previous $4.15-$4.20 billion [13]. - Adjusted earnings per share guidance remains at $4.25-$4.35, with projected growth of 4.2%-6.6% year over year [14]. - For Q2 fiscal 2025, revenue is expected to be between $995 million and $1.01 billion, indicating a year-over-year decline [14][15]. Market Sentiment - Recent estimates for Hologic have been trending downward, indicating a cautious outlook among investors [16][18]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the near term [18].